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.£381.3m
Last close96.00p
High / Low (52 weeks)131.0p / 96.0p
Stock market listingLN
Forecast net debt (£m)63
Forecast gearing ratio (%)17
SectorAutomotive Retailers

Price performance

Relative *(10.1)(9.6)(17.6)

* % Relative to local index

Other companies in sector Show

Company news

Inside the mind of Lookers plc CEO Andy Bruce as firm acquires Benfield Motor ...

Thu, 03 Sep 2015 14:19:14 GMT

Vertu acquires three Honda dealerships from rivals Lookers Plc for £2m

Mon, 25 Jan 2016 08:52:04 GMT

Lookers PLC Positive Q3 update

Thu, 09 Nov 2017 07:43:04 GMT

Lookers versus the tyre-kickers

Wed, 16 Aug 2017 18:49:50 GMT

Why are Lookers plc, Georgia Healthcare Group plc and Speedy Hire plc surging ...

Tue, 17 May 2016 10:30:00 GMT

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 7.7 11.5
2016A 4088.2 97.6 64.9 13.1 7.3 2.9
2017E 4575.1 105.2 73.0 14.7 6.5 3.6
2018E 4653.8 105.5 73.6 14.8 6.5 3.7

Last updated on 13/11/2017

Investment summary

Lookers issued a Q3 trading statement that reaffirmed management expectations for 2017. It also indicated the initiation of a share buyback programme, as in the absence of any immediate M&A opportunities the recent fall in the share price has made the returns compelling from such an allocation of capital. Clearly, new car sales in the UK are persistently lower year-on-year, with confidence declines among consumers and businesses taking their toll. However, the strength of higher-margin used car demand and aftermarket sales continue to deliver a positive mix. Overall, the rating appears undemanding and the yield attractive.

Last updated on 13/11/2017

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 02/11/2017

Key management

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

Company address

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