Lookers (LOOK)

Business description

Lookers is a leading UK motor vehicle and specialist parts distributor. It operates 155 franchises, representing 32 marques spread across the UK.

Stock data

Market cap.£406.7m
Last close102.40p
High / Low (52 weeks)131.0p / 94.5p
Stock market listingLN
Forecast net debt (£m)63
Forecast gearing ratio (%)17
TeamIndustrials
SectorAutomotive Retailers

Price performance

%1m3m12m
Actual(0.6)(8)(18.4)
Relative *(2.7)(9.9)(24.2)

* % Relative to local index

Other companies in sector Show

Company news

Y/E Dec Revenue (£m) EBITDA (£m) PBT (£m) EPS (fd) (p) P/E (x) P/CF (x)
2015A 3430.3 84.4 59.6 12.4 8.3 12.3
2016A 4088.2 97.6 64.9 13.1 7.8 3.1
2017E 4575.1 105.2 73.0 14.7 7.0 3.8
2018E 4653.8 105.5 73.6 14.8 6.9 4.0

Last updated on 12/12/2017

Investment summary

Lookers has a growth strategy based on organic growth supplemented by M&A, consistently delivering record profits for many years. Management's more focused brand strategy and related investment increases continue to be supported by a strong balance sheet. The Q3 trading statement reaffirmed management expectations for 2017 plus indicated the initiation of a share buyback programme in the absence of any immediate M&A opportunities. New car sales in the UK are persistently lower year-on-year; however, the strength of higher-margin used car demand and aftermarket sales continue to deliver a positive mix.

Last updated on 13/12/2017

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, although stockmarket confidence is undermined by the inflationary impact of weak sterling on new car prices and interest rates. A 35% rating discount relative to the FTSE All-Share General Retailers Index fails to recognise the defensive qualities across a sector where used vehicle and aftersales activities account for the majority of profits.

Last updated on 13/12/2017

Key management

Phil White, Chairman
Andy Bruce, CEO
Robin Gregson, FD

Company address

776 Chester Road
Stretford
Manchester
M32 0QH
United Kingdom
+44 (0) 161 291 0043
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