Lookers PLC (LON:LOOK) have told the market that they expect their profit results to meet company expectations.
Shares in Lookers trade at 56p (+3.53%). 5/2/20 13:02BST.
The firm alluded to a challenging trading environment in the fourth quarter of 2019, however it seems that the firm has managed to overcome these to deliver strong results.
For the three months to the end of December, Lookers said like-for-like sales of new vehicles declined by 6.6%, compared to a 3.2% fall in the third quarter, due to a contracting UK new car market, and a reduction in lower margin fleet volume.
Like for like sales increased by 3.8%, which saw growth compared to the 2.6% figure reported in the third quarter.
Lookers also alluded to a forecast predicting a further decline in the UK new car market in 2020, and Lookers joined a number of firms who have cited political tensions as a dampener on business.
Mark Raban, Chief Executive Officer said:
“2019 was a challenging year for Lookers. The declining new car market, political and economic uncertainty and increased operating costs were all factors in the Group’s decline in profitability. Over recent weeks the Board has instigated a number of clear and decisive actions to stabilise and improve operational and financial performance.
The Board remains confident about the long-term prospects for the Group, benefitting from excellent OEM relationships, strategic trading locations and a strong freehold property portfolio.”
The UK car market is still trying to bounce back from external shocks which have affected consumer confidence and have caused lower output from automobile manufacturers.
Lookers also announced a change in their senior management board this morning. Chief Financial Officer Mark Raban will become chief executive officer with immediate effect, alongside the promotion of Franchise Director Cameron Wade to be chief operating officer.
Raban and Wade will be replacing former CEO Andy Bruce and COO Nigel McMinn, both of whom stepped down in November after Lookers saw a tough few months of trading, which led to the issuance of a profit warning.