20 August 2020

Lookers has delayed its 2019 accounts again and will now not hit its self-imposed deadline of publishing before the end of August as it has extended the scope of its accounting investigations. The group has not said when it now aims to publish the figures.

The group’s shares will remain suspended from the Stock Exchange until the accounts are published. Speaking to Auto Retail Agenda in June, the group had previously denied it would need extra time to publish the accounts.

Simultaneously, the troubled retailer has issued a trading update covering the first half of 2020 and the post-lockdown period.

The Lookers’ statement said: “The board has concluded that publication of the group’s 2019 financial statements is no longer possible by the end of August 2020, as was previously anticipated. Following review of the final report from Grant Thornton  on 3 August 2020, the board and its auditors, Deloitte, extended the scope of the 2019 audit at consolidated group and individual entity level.

“The extended scope of the audit has identified further work on the Group’s corporate leasing division and vehicle financing arrangements and the 2018 and earlier balance sheets to ensure correct identification and allocation of adjustments. Further work is ongoing to finalise the 2019 accounts.”

In its trading update, Lookers was bullish about sales and aftersales since dealerships were allowed to re-open in June. It claimed the group had performed ahead of the market and was positive about August and September sales.

Mark Raban, Lookers CEO, said: “This has been a very challenging period for Lookers, but it is encouraging that we are beginning to see some healthy signs of recovery in vehicle sales since the easing of lockdowns.

“We remain cautious about the future given ongoing uncertainties in the wider environment, but confident in the opportunities for the Lookers business moving forward.”

The stock market statement added: “The temporary closure of the group’s dealerships throughout the lockdown period had a significant impact on the group’s financial performance during H1. The group expects to report H1 revenue of approximately £1.6bn (2019: £2.6bn) being impacted by the extended lockdowns in Northern Ireland and Scotland.

“In addition to the revenue decline the Group also experienced margin pressure in both new and used vehicles with the former impacted by reduced levels of manufacturer volume bonus receipts. These impacts were partially mitigated by cost savings and benefits from portfolio consolidation.

“The group expects to report a material underlying PBT loss for H1, after receiving c£29m from the Government’s Job Retention Scheme.”

Tags: Lookers