Lookers plc, (“Lookers” or “the Group”), one of the leading UK motor retail and aftersales service groups, announces its unaudited results for the six months ended 30 June 2019 (“H1”, “first half” or “the Period”).
|Underlying profit before tax £m*||29.2||40.3||-27.5%||53.9|
|Profit before tax (“PBT”) £m||24.9||41.3||-39.7%||48.6|
|Net debt £m**||73.9||54.5||-35.6%||86.9|
|Underlying basic earnings per share (p)*||6.06p||8.59p||-29.5%||11.22p|
|Basic earnings per share (p)||5.17p||8.80p||-41.3%||10.12p|
|Dividend per share (p)||1.48p||1.48p||-||4.08p|
* PBT before property disposals, share based compensation, defined benefit pension enhanced past service costs, provision for the restructure of regulated activities, net interest on pension scheme obligations and debt issue costs
** Excluding lease liabilities under IFRS16
*** Restated for first time adoption of IFRS 16 (see note 1) and reclassification of amortisation of on intangible assets to underlying earnings
- Increase in total revenue of 2.7% with growth in both used cars and aftersales. Like-for-like revenue growth of 0.1%
- Underlying PBT of £29.2m, down -27.5% reflecting a challenging UK market backdrop
- Continued outperformance of the UK new car market. New car unit like-for-like sales down -1.2% versus UK market decline of -3.4%
- Resilient aftersales performance with like-for-like revenue growth of 6.2%
- Restructure and strengthening of regulated activities. One off investment identified of approximately £10.0m, creating a stable platform for future growth and an enhanced customer experience. Remediation plan well underway
- Strong balance sheet with net debt of £73.9m (2018: £54.5m) down from £86.9m at 31 December 2018
- Interim dividend maintained at 1.48p (H1 2018: 1.48p)
- Valuable property portfolio with a net book value £312.1m of freehold and leasehold property (net book value 80p per share)
Andy Bruce, Chief Executive of Lookers, said:
“Our performance for the first half reflects an ongoing backdrop of challenging UK market conditions for the sector. Whilst we are reporting lower profits year-on-year, we have made good progress on a number of strategic initiatives and have a clear investment plan to restructure and strengthen our regulated activities. Our balance sheet remains strong including our valuable property portfolio. Working closely with our brand partners I am confident in the long-term prospects for the business. The Board’s current outlook for the full year at the underlying profit before tax level remains unchanged”.
There will be an analyst presentation today at 9.30am, taking place at MHP Communications, 6 Agar Street, London, WC2N 4HN. The presentation will also be accessible via a live conference call for registered participants. To register for the call please contact MHP Communications on +44 (0)20 3128 8742, or by email on lookers@MHPC.com.