This announcement contains inside information for the purposes of article 7 of the Market Abuse Regulation (EU) No 596/2014.
Lookers plc, ("Lookers", "the Company" or "the Group"), one of the leading UK motor retail and aftersales service groups, issues the following statement in connection with a review into the controls and processes of its regulated activities.
Adapting to developments in regulation affecting the motor retail industry and the fast pace of change of customer demands and behaviours, is a key challenge and an important priority for the Group.
As disclosed in the 2018 Annual Report and Accounts, during last year the Board became aware of certain matters requiring review in some areas of the business subject to regulation by the Financial Conduct Authority (“FCA”). In December 2018, the Board commissioned an independent review of the Group’s internal control, risk assurance systems and internal audit. This review, which we shared with the FCA, indicated that there were some control issues in the sales process in the Group’s regulated activities which will require an improvement plan to be implemented. We have invested in both our internal capabilities and external advice. The project will be completed and agreed actions will be implemented as soon as possible.
The Company has now been informed by the FCA that it intends to carry out an investigation into the Company’s sales processes between the period of 1 January 2016 to 13 June 2019.
The FCA investigation is newly commenced and no findings have been made. The FCA will reach its conclusions in due course and, at this stage, the Company cannot estimate what effect, if any, the outcome of this investigation may have. The Company is co-operating fully with the FCA in relation to this and will update the market further when appropriate.