Lookers

LN: LOOK

Market Cap£258.1m

Last Close 66.1p

Lookers is vying to be the largest UK motor vehicle retailer, with its new car operations supported by the strength of used and aftersales activities. It operates 150 franchises, representing 33 marques from 100 sites around the UK.

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Investment summary

Lookers is the second largest UK new car retailer. In COVID-affected FY20, a £36.1m H120 underlying PBT loss has been followed by strong H220 trading with the 18 March trading update statement indicating a c £10m profit for FY20 compared to analyst consensus for a small loss. At 30 April 2021 net debt (ex leases) was around £4m (FY20 £45.5m).Disruption and uncertainties for car retailers continue in FY21, although trading in lockdown 3 has been been healthier than expected and should improve as more normal trading resumes in Q221. The four-month trading update on 25 May provided confirmation as management expects FY21 adjusted PBT to be materially ahead of analyst consensus of £34m.

Y/E Dec
Revenue (£m)
EBITDA (£m)
PBT (£m)
EPS (fd) (p)
P/E (x)
P/CF (x)
2018A 4828.3 117.1 42.8 8.41 7.9 2.1
2019A 4787.2 90.9 4.2 0.84 78.7 1.9
2020E N/A N/A N/A N/A N/A N/A
2021E N/A N/A N/A N/A N/A N/A
Industry outlook

Market dynamics favour larger motor dealership groups against smaller independent groups, which still command c 60% of the franchise market. Global manufacturing overcapacity still points to OEM support. However, the sector is normally rated for recessions and economic shocks like these and survived a dramatic crisis for the sector in 2008/9.

Last updated on 21/06/2021
Content on Lookers
Lookers – Operations recovering despite audit delays
Industrials | Update | 24 August 2020
Lookers – Signs of progress despite challenges
Industrials | Update | 6 February 2020
Lookers – New retail sales declined in Q3
Industrials | Update | 5 November 2019
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Share price graph
Balance sheet
Forecast net debt (£m) N/A
Forecast gearing ratio (%) N/A
Price performance
%
1m
3m
12m
Actual 3.3 27.1 188.7
Relative* 2.7 20.7 149.9
52-week high/low 72.0p/19.7p
*% relative to local index
Key management
Phil White Chairman
Mark Raban CEO
Cameron Wade COO and Director of Lookers