Announcement • Oct 10
Lookers Announces Cancellation of Admission to Trading on the London Stock Exchange Lookers plc announced that at the request of the company, its ordinary shares of 5 pence each, fully paid have been cancelled from admission to trading on London Stock Exchange with effect from the time and date of October 9, 2023 - 08:00. Announcement • Oct 07
Lookers plc(LSE:LOOK) dropped from FTSE All-Share Index (GBP) Lookers plc(LSE:LOOK) dropped from FTSE All-Share Index (GBP) Announcement • Sep 16
Lookers' Shares to Be Delisted from London Stock Exchange on 9 October 2023 On 20 June 2023, the boards of Global Auto Holdings Limited (Bidco) and Lookers plc announced that they had reached agreement on the terms of a recommended cash offer by Bidco for the entire issued and to be issued ordinary share capital of Lookers pursuant to Rule 2.7 of the Takeover Code, to be implemented by means of a Court-sanctioned scheme of arrangement under Part 26 of the Companies Act 2006. On 5 September 2023, the Scheme was approved by the Scheme Shareholders at the Court Meeting. Dealings in Lookers Shares on the London Stock Exchange suspended expected on 7.30 a.m. on 6 October 2023. Delisting of Lookers Shares is expected on 8.00 a.m. on 9 October 2023. New Risk • Jul 28
New major risk - Share price stability The company's share price has been highly volatile over the past 3 months. It is more volatile than 90% of British stocks, typically moving 13% a week. This is considered a major risk. Share price volatility increases the risk of potential losses in the short-term as the stock tends to have larger drops in price more frequently than other stocks. It may also indicate the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. Currently, the following risks have been identified for the company: Major Risks Debt is not well covered by operating cash flow (13% operating cash flow to total debt). Share price has been highly volatile over the past 3 months (13% average weekly change). Earnings are forecast to decline by an average of 7.2% per year for the foreseeable future. Minor Risk Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Valuation Update With 7 Day Price Move • Jul 24
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to UK£1.00, the stock trades at a forward P/E ratio of 7x. Average forward P/E is 12x in the Specialty Retail industry in the United Kingdom. Total returns to shareholders of 413% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at UK£1.18 per share. Price Target Changed • Jun 22
Price target decreased by 7.1% to UK£1.30 Down from UK£1.40, the current price target is an average from 3 analysts. New target price is 9.4% above last closing price of UK£1.19. The company is forecast to post earnings per share of UK£0.14 for next year compared to UK£0.19 last year. Announcement • Jun 22
Impero Jersey Corp Ltd entered into scheme of arrangement to acquire Lookers plc (LSE:LOOK) from J O Hambro Capital Management Limited, Artemis Investment Management LLP, Schroder Investment Management Limited, Cinch Holdco Uk Limited and others for approximately £470 million. Impero Jersey Corp Ltd entered into scheme of arrangement to acquire Lookers plc (LSE:LOOK) from J O Hambro Capital Management Limited, Artemis Investment Management LLP, Schroder Investment Management Limited, Cinch Holdco Uk Limited and others for approximately £470 million on June 20, 2023. As per the terms of the transaction, the offer per share is £1.2. The cash consideration payable to Lookers Shareholders pursuant to the acquisition is fully financed with acquisition financing underwritten by Bank of Montreal, Fédération des caisses Desjardins du Québec and National Bank of Canada under the Interim Facility Agreement. Transaction is subject to the approval's of Lookers shareholders, court, regulatory and other deal conditions. Lookers plc board consider the terms of the Offer to be fair and reasonable, and has recommended the shareholders to vote in favor of the scheme. The offeror has taken the irrevocable undertakings of holders of 160,655,505 Lookers Shares, representing 42.1% stake to vote in favor of the scheme. The Offer is expected to become Effective in late Q3 / early Q4, 2023. Skadden, Arps, Slate, Meagher & Flom (UK) LLP acted as a legal advisor, Jefferies International Limited and BMO Capital Markets Limited acted as financial advisors to Impero Jersey. Eversheds Sutherland acted as a legal advisor, Numis Securities Limited and Peel Hunt LLP acted as financial advisors to Lookers plc. New Risk • Jun 21
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of British stocks, typically moving 10% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risks Debt is not well covered by operating cash flow (13% operating cash flow to total debt). Earnings are forecast to decline by an average of 7.2% per year for the foreseeable future. Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Share price has been volatile over the past 3 months (10% average weekly change). Valuation Update With 7 Day Price Move • Jun 20
Investor sentiment improves as stock rises 40% After last week's 40% share price gain to UK£1.19, the stock trades at a forward P/E ratio of 9x. Average forward P/E is 11x in the Specialty Retail industry in the United Kingdom. Total returns to shareholders of 471% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at UK£1.05 per share. Buying Opportunity • May 30
Now 21% undervalued after recent price drop Over the last 90 days, the stock is down 11%. The fair value is estimated to be UK£1.03, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has been flat over the last 3 years. Meanwhile, the company has become profitable. For the next 3 years, revenue is forecast to grow by 4.3% per annum. Earnings is forecast to decline by 7.2% per annum over the same time period. Announcement • May 25
Lookers plc Approves Final Dividend for the Year Ended December 31, 2022 Lookers plc announced that at its AGM held on May 24, 2023, shareholders approved the final dividend of 2.0 pence per ordinary share in the company in respect of the year ended 31 December 2022. Announcement • May 05
Lookers plc (LSE:LOOK) acquired Business and assets of Waterhouse Cars Limited. Lookers plc (LSE:LOOK) acquired Business and assets of Waterhouse Cars Limited on May 4, 2023. Following the completion of the transaction, Lookers has committed to invest £2 million in the newly acquired site to ensure it is a state-of-the-art Volvo dealership. The acquisition complements the Lookers' existing Volvo dealership in Colchester and adds 40 dedicated staff to the local team.Lookers plc (LSE:LOOK) completed the acquisition of Business and assets of Waterhouse Cars Limited on May 4, 2023. Upcoming Dividend • May 04
Upcoming dividend of UK£0.02 per share at 4.7% yield Eligible shareholders must have bought the stock before 11 May 2023. Payment date: 16 June 2023. Payout ratio is a comfortable 16% and this is well supported by cash flows. Trailing yield: 4.7%. Lower than top quartile of British dividend payers (5.8%). Higher than average of industry peers (2.8%). Major Estimate Revision • Apr 12
Consensus EPS estimates increase by 11%, revenue downgraded The consensus outlook for fiscal year 2023 has been updated. 2023 revenue forecast fell from UK£4.66b to UK£4.52b. EPS estimate rose from UK£0.123 to UK£0.137. Net income forecast to shrink 27% next year vs 0.9% decline forecast for Specialty Retail industry in the United Kingdom. Consensus price target up from UK£1.27 to UK£1.40. Share price rose 2.1% to UK£0.89 over the past week. Reported Earnings • Apr 06
Full year 2022 earnings: EPS exceeds analyst expectations while revenues lag behind Full year 2022 results: EPS: UK£0.19 (up from UK£0.16 in FY 2021). Revenue: UK£4.30b (up 6.2% from FY 2021). Net income: UK£73.9m (up 21% from FY 2021). Profit margin: 1.7% (up from 1.5% in FY 2021). The increase in margin was driven by higher revenue. Revenue missed analyst estimates by 2.4%. Earnings per share (EPS) exceeded analyst estimates by 10%. Revenue is forecast to grow 4.3% p.a. on average during the next 3 years, compared to a 6.3% growth forecast for the Specialty Retail industry in the United Kingdom. Over the last 3 years on average, earnings per share has increased by 96% per year but the company’s share price has only increased by 63% per year, which means it is significantly lagging earnings growth. Major Estimate Revision • Jan 13
Consensus EPS estimates increase by 11% The consensus outlook for earnings per share (EPS) in 2022 has improved. 2022 revenue forecast increased from UK£4.25b to UK£4.41b. EPS estimate increased from UK£0.15 to UK£0.17 per share. Net income forecast to shrink 24% next year vs 19% decline forecast for Specialty Retail industry in the United Kingdom. Consensus price target broadly unchanged at UK£1.22. Share price rose 3.8% to UK£0.84 over the past week. Board Change • Nov 16
High number of new and inexperienced directors There are 8 new directors who have joined the board in the last 3 years. The company's board is composed of: 8 new directors. 1 experienced director. No highly experienced directors. CEO & Executive Director Mark Raban is the most experienced director on the board, commencing their role in 2019. The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of board continuity. Lack of experienced directors. Upcoming Dividend • Oct 13
Upcoming dividend of UK£0.01 per share Eligible shareholders must have bought the stock before 20 October 2022. Payment date: 25 November 2022. Payout ratio is a comfortable 18% and this is well supported by cash flows. Trailing yield: 3.1%. Lower than top quartile of British dividend payers (6.4%). In line with average of industry peers (3.4%). Reported Earnings • Aug 24
First half 2022 earnings released: EPS: UK£0.10 (vs UK£0.063 in 1H 2021) First half 2022 results: EPS: UK£0.10 (up from UK£0.063 in 1H 2021). Revenue: UK£2.23b (up 3.6% from 1H 2021). Net income: UK£40.4m (up 64% from 1H 2021). Profit margin: 1.8% (up from 1.1% in 1H 2021). The increase in margin was driven by higher revenue. Over the next year, revenue is forecast to grow 4.6%, compared to a 8.5% growth forecast for the Specialty Retail industry in the United Kingdom. Over the last 3 years on average, earnings per share has increased by 86% per year but the company’s share price has only increased by 18% per year, which means it is significantly lagging earnings growth. Major Estimate Revision • Jul 01
Consensus forecasts updated The consensus outlook for 2022 has been updated. 2022 revenue forecast fell from UK£4.24b to UK£4.16b. EPS estimate rose from UK£0.15 to UK£0.17. Net income forecast to grow 0.8% next year vs 9.8% decline forecast for Specialty Retail industry in the United Kingdom. Consensus price target up from UK£1.15 to UK£1.21. Share price rose 3.9% to UK£0.75 over the past week. Upcoming Dividend • May 12
Upcoming dividend of UK£0.025 per share Eligible shareholders must have bought the stock before 19 May 2022. Payment date: 24 June 2022. Trailing yield: 3.6%. Lower than top quartile of British dividend payers (4.8%). Higher than average of industry peers (2.9%). Buying Opportunity • May 04
Now 22% undervalued after recent price drop Over the last 90 days, the stock is down 19%. The fair value is estimated to be UK£1.01, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has declined by 7.9% over the last 3 years. Meanwhile, the company has become profitable. For the next 3 years, revenue is forecast to grow by 5.9% per annum. Earnings is forecast to decline by 11% per annum over the same time period. Board Change • Apr 27
High number of new and inexperienced directors There are 8 new directors who have joined the board in the last 3 years. The company's board is composed of: 8 new directors. No experienced directors. No highly experienced directors. CEO & Executive Director Mark Raban is the most experienced director on the board, commencing their role in 2019. The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of board continuity. Lack of experienced directors. Reported Earnings • Apr 07
Full year 2021 earnings released: EPS: UK£0.16 (vs UK£0.011 loss in FY 2020) Full year 2021 results: EPS: UK£0.16 (up from UK£0.011 loss in FY 2020). Revenue: UK£4.05b (up 9.5% from FY 2020). Net income: UK£61.2m (up UK£65.3m from FY 2020). Profit margin: 1.5% (up from net loss in FY 2020). The move to profitability was driven by higher revenue. Over the next year, revenue is forecast to grow 8.9%, compared to a 12% growth forecast for the retail industry in the United Kingdom. Over the last 3 years on average, earnings per share has increased by 41% per year but the company’s share price has fallen by 3% per year, which means it is significantly lagging earnings. Price Target Changed • Apr 06
Price target increased to UK£1.15 Up from UK£1.07, the current price target is an average from 5 analysts. New target price is 25% above last closing price of UK£0.92. Stock is up 47% over the past year. The company posted a net loss per share of UK£0.011 last year. Price Target Changed • Feb 07
Price target increased to UK£1.13 Up from UK£1.00, the current price target is an average from 5 analysts. New target price is 18% above last closing price of UK£0.96. Stock is up 153% over the past year. The company posted a net loss per share of UK£0.011 last year. Price Target Changed • Jan 31
Price target increased to UK£1.07 Up from UK£0.99, the current price target is an average from 5 analysts. New target price is 15% above last closing price of UK£0.93. Stock is up 135% over the past year. The company posted a net loss per share of UK£0.011 last year. Executive Departure • Oct 12
Non-Executive Chairman Philip White has left the company On the 1st of October, Philip White's tenure as Non-Executive Chairman ended. As of June 2021, Philip still personally held 53.72k shares (UK£38k worth at the time). A total of 5 executives have left over the last 12 months. The current median tenure of the management team is less than a year, which is considered inexperienced in the Simply Wall St Risk Model. Reported Earnings • Sep 11
First half 2021 earnings released: EPS UK£0.063 (vs UK£0.13 loss in 1H 2020) The company reported a strong first half result with improved earnings, revenues and profit margins. First half 2021 results: Revenue: UK£2.15b (up 37% from 1H 2020). Net income: UK£24.7m (up UK£75.6m from 1H 2020). Profit margin: 1.1% (up from net loss in 1H 2020). The move to profitability was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 29% per year but the company’s share price has only fallen by 15% per year, which means it has not declined as severely as earnings. Executive Departure • Aug 05
Interim Chief Financial Officer Anna Bielby has left the company On the 31st of July, Anna Bielby's tenure as Interim Chief Financial Officer ended after less than a year in the role. We don't have any record of a personal shareholding under Anna's name. A total of 4 executives have left over the last 12 months. The current median tenure of the management team is less than a year, which is considered inexperienced in the Simply Wall St Risk Model. Reported Earnings • Jul 02
Full year 2020 earnings released: UK£0.01 loss per share (vs UK£0.11 loss in FY 2019) The company reported a decent full year result with reduced losses and improved control over expenses, although revenues were weaker. Full year 2020 results: Revenue: UK£3.70b (down 23% from FY 2019). Net loss: UK£4.10m (loss narrowed 90% from FY 2019). Like-for-like sales growth: Down 20.4% vs FY 2019 Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 89 percentage points per year, which is a significant difference in performance. Executive Departure • May 04
Senior Independent Director has left the company On the 30th of April, Heather Jackson's tenure as Senior Independent Director ended after 1.4 years in the role. We don't have any record of a personal shareholding under Heather's name. A total of 5 executives have left over the last 12 months. Major Estimate Revision • Mar 20
Consensus forecasts updated The consensus outlook for 2020 has been updated. Forecast profits in 2020 with EPS up from -UK£0.0075 to UK£0.02 per share. Revenue forecast unchanged from last update at UK£3.84b. Specialty Retail industry in the United Kingdom expected to see average net income growth of 11% next year. Consensus price target of UK£0.60 unchanged from last update. Share price rose 3.6% to UK£0.52 over the past week. Reported Earnings • Feb 01
First half 2020 earnings released: UK£0.13 loss per share (vs UK£0.04 profit in 1H 2019) The company reported a poor first half result with weaker earnings, revenues and control over costs. First half 2020 results: Revenue: UK£1.56b (down 40% from 1H 2019). Net loss: UK£50.5m (down 428% from profit in 1H 2019). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 94 percentage points per year, which is a significant difference in performance. Price Target Changed • Feb 01
Price target raised to UK£0.52 Up from UK£0.25, the current price target is an average from 3 analysts. The new target price is 31% above the current share price of UK£0.40. As of last close, the stock is down 25% over the past year. 
