Lookers

LN: LOOK

£265.9m market cap

68.1p last close

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.

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 31 December 2020 net debt (ex leases) was around £45m (FY19 £59.5m) and has reduced significantly since then. The ongoing disruption and uncertainties for car retailers in FY21 continue, although the progressive lifting of lockdown should provide some hope for a more normal trading environment. A Q121 trading update on 8 April confirmed that FY21 would be materially ahead of analyst consensus expectations.

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 8.1 2.2
2019A 4787.2 90.9 4.2 0.84 81.1 2.0
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 05/05/2021
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Sector
Industrials
Share price graph
Balance sheet
Forecast net debt (£m) N/A
Forecast gearing ratio (%) N/A
Price performance
%
1m
3m
12m
Actual 26.1 79.0 225.8
Relative* 21.0 65.5 162.0
52-week high/low 72.0p/17.3p
*% relative to local index
Key management
Phil White Chairman
Mark Raban CEO
Cameron Wade COO and Director of Lookers

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