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.£388.4m
Last close98.20p
High / Low (52 weeks)130.0p / 82.0p
Stock market listingLN
Forecast net debt (£m)64.1
Forecast gearing ratio (%)16
TeamIndustrials
SectorAutomotive Retailers

Price performance

%1m3m12m
Actual10.8(1.6)(23.4)
Relative *4.61.4(24.7)

* % Relative to local index

Other companies in sector Show

Company news

Lookers versus the tyre-kickers

Wed, 16 Aug 2017 18:49:50 GMT

Lookers warns over British car sales

Wed, 16 Aug 2017 12:33:14 GMT

Used-car dealer Lookers ticking over despite 'difficult' UK market

Wed, 07 Mar 2018 08:26:15 GMT

Lookers PLC Positive Q3 update

Thu, 09 Nov 2017 07:43:04 GMT

Is Lookers plc (LON:LOOK) Cheap For A Reason?

Wed, 28 Mar 2018 17:15:00 GMT

Y/E Dec Revenue (£m) EBITDA (£m) PBT (£m) EPS (fd) (p) P/E (x) P/CF (x)
2016A 4088.2 97.6 64.9 13.13 7.5 3.0
2017A 4696.3 105.4 68.4 14.14 6.9 5.9
2018E 4743.9 103.8 67.7 13.71 7.2 3.2
2019E 4884.5 106.3 70.4 14.46 6.8 3.6

Last updated on 04/04/2018

Investment summary

Lookers has a growth strategy based on organic growth supplemented by M&A, consistently delivering record profits for many years. The FY17 results met expectations, save for a restructuring charge and under delivery by one 2016 acquisition that should improve in FY18. The more focused brand strategy and investment are supported by a strong balance sheet. A share buyback was confirmed although M&A prospects may be improving. Car markets in the UK remain moderately softer year-on-year although the relative strength of higher-margin used car demand and aftermarket sales continue to deliver a positive mix.

Last updated on 06/04/2018

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 06/04/2018

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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