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Lookers PLC Appointment of Non-Executive Director
08/03/2021 7:00am
UK Regulatory (RNS & others)
Lookers (LSE:LOOK)
Intraday Stock Chart
Monday 8 March 2021
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TIDMLOOK
RNS Number : 3940R
Lookers PLC
08 March 2021
8 March 2021
Lookers plc
Appointment of Non-Executive Director
Lookers plc, ("Lookers"), one of the leading UK motor retail and aftersales service groups, is pleased to announce the appointment of Paul Van der Burgh to the Board of Lookers as a Non-Executive Director. Paul will join the Board on 1 April 2021 and will be a member of the Audit and Risk, Remuneration and Nominations Committees.
Paul is highly experienced in the global automotive industry, having held senior executive positions at leading multinational brands around the world for over 35 years. He spent 15 years at Toyota and Lexus, most recently as the President and Managing Director of Toyota (GB). Prior to this, Paul held a variety of roles at Ford in the UK and the Americas. Paul has also been an Executive Director of the Society of Motor Manufacturers & Traders.
Phil White, Chairman, commented:
"We are absolutely delighted that Paul will be joining the Lookers Board next month. His track record at both Toyota and Ford speaks for itself. He is well known and highly respected throughout the motor industry for all he has achieved in his career. His in-depth understanding of our industry, combined with his extensive experience, will be a great asset to Lookers as we continue to lift the brakes on the business and look forward to the multiple opportunities ahead. Paul's experience and guidance will be invaluable to us on that journey."
Paul Van der Burgh commented:
"I am thrilled to be joining the Lookers Board at a very exciting time for the business. Having spent most of my career with major global manufacturing brands, I really appreciate the importance of a strong, well located dealership network. I am also well aware of the changing dynamics in the market, not least through electrification and digitisation, where Lookers can further enhance its proposition and prosper in the current environment."
There is no information in respect of Paul Van der Burgh which would require disclosure under Listing Rules 9.6.13(1) to 9.6.13(6) inclusive.
Massive news for the company and this will now help the sp start moving back to where it should be. Lookers will be the cleanest and most audited motor group in the Uk at the moment.
If anyone is looking at lookers they will move in the next 8 weeks, if not we have the next 24 months which should be a wonderful journey for all patient shareholders.
nvestment case summary
? Following an extremely difficult period for Lookers over the last 18 months, we believe it is over the worst and is back on the road to recovery. While the market backdrop will remain challenging, we believe the Group is a position to move forward from the legacy issues and refocus on the strategic priorities for the future.
? The implied H2 2020 performance gives us comfort that the strategic plan and cost initiatives are working. Lookers announced an adjusted loss of £36m in H1 and is expected to be broadly break even in FY 2020E (we are forecasting a small loss of £1.0m). This implies a H2 profit of £34.5m, although we do acknowledge there was Government stimulus on costs (business rate relief and furlough) to support this outcome. We believe this improvement has not just come from annualised payroll savings of c.£50m but also lower investment in used car stock levels (c.£145m in H1 2020A from £240m in FY 2019A) as well as higher levels of stock turn running at 35-40 days vs. 55-60 days before.
? The near-term outlook is likely to remain challenging across the sector, albeit Lookers has used COVID-19 as a catalyst for significant change. Although new coronavirus infections and deaths falling rapidly in the UK and vaccination levels are progressing well, the roadmap out of lockdown 3 is cautious with motor dealerships not fully reopening until 12 April 2021. As a result, sales volumes in March – when the new 21 registration plate comes in – are still likely to be weaker than normal as restrictions are likely to be in place. That said, as we saw last year, once dealerships are allowed to be fully open, pent up demand could re-emerge post-March with data from Auto Trader pointing towards strong interest levels in new cars. Used car margins have remained strong in what we see as a supply constrained market.
? The shares have considerable asset backing, with property assets per share of 80.4p as at 30th June 2020 and net assets per share of 63.6p at the same date. Both figures are far
in excess of the current share price due to the company’s poor recent results and the lack of internal controls that led to the restatement of its 2018 figures and its run-in with the FCA.
? Lookers has already disclosed that net bank debt (which excludes IFRS 16 property leases and vehicle rental lease liabilities) was approximately £45 million at the end of 2020. This compares with £59.5 million at the end of 2019 and £11.0 million at the end of June 2020. Property lease debt was £135.8 million at 30th June 2010 and vehicle rental lease liabilities were £87.6 million giving total net debt of £234.4 million. In addition to this, the group had
a deficit on its defined benefit pension schemes of £69.5 million at the end of June 2019 and
the “subsequent events” section of its 2019 Annual Report (published on 30th November 2020) discloses that it will step up its deficit reduction payments from £9 million to £12 million
a year,
Lookers Plc*
LOOK LN General Retail
Road to recovery
Lookers is emerging from its recent turmoil in good shape. It has replaced key management and enhanced its controls over processes, reporting, costs and cash flow. Restructuring exercises in late-2019 and mid-2020 have improved the dealership portfolio and cut £50m from payroll. This should enable the company to deliver a strong recovery in profits as demand returns with the ending of lockdown #3 on 12th April. On a FY22E PE of under 5x and trading at a 34% discount to NAV, the shares look undervalued, and our bluesky scenario can justify a target value of over 100p.
? Lookers has been under a cloud since its discovery of weak controls and poor sales practises back in 2018. Subsequent investigations revealed fraudulent accruals for manufacturer volume bonuses and other issues which – after a suspension of the shares’ listing from July 2020 to 29 January 2021 - required a restatement of the 2018 results. The FCA has still to finalise its investigation but the CEO and FD have been replaced and new procedures and controls are in place. We are hopeful that any fine will be within the £10.4m provided.
? Trading was hit hard by the first COVID-19 lockdown but the underlying H1 2020 loss of £36.1m is likely to have been almost fully offset by a strong H2 leaving the full year result for 2020 – to be published in May – close to breakeven. Cash flow performance was encouraging, and net bank debt (i.e. nonIFRS 16) was reduced by £14.5m to circa £45m during 2020.
? Dealerships are likely to reopen on 12th April, so the current lockdown will soon be over. Reports from Auto Trader point to strong interest from consumers which bodes well for the forthcoming 21 registration plate change, even if demand is spread over two months rather than the typical one (March). The
SMMT forecasts 1.88 million new car registrations for 2021 (+15.7%) and 2.13 million for 2022 (+12.9%).
? Restructuring and cost reduction exercises that began in November 2019 and June 2020 have cut staff numbers by around 24% and reduced annual payroll expenses by c.£50m. This should result in a strong recovery in profits once lockdown ends and demand recovers; we expect PBT of £26.0m in 2021 and £43.8m in 2022 giving EPS of 5.3p followed by 9.0p. This should enable a return to dividend payments – perhaps up to 3p for 2022 – although this is not yet in our forecasts.
? At today’s share price of 41.8p, this would put the shares on a PE of just 4.7x to December 2022 while a 3p dividend would give a yield of 7.2%. The shares also have considerable asset backing; property portfolio per share was 80.4p at 30th June 2020 and NAV per share was 63.6p.
https://www.***************************/lookers-plc-deliver-a-very-strong-h2-analyst-interview/412964925
https://www.bloomberg.com/news/newsletters/2021-02-18/covid-testing-is-here-to-stay?sref=87EFEmib
Bloomberg.
Coronavirus Daily
Covid Testing Is Here to Stay
By Emma Court
February 18, 2021, 7:30 AM EST
Advocates like Harvard epidemiologist Michael Mina, meanwhile, say now is the time to keep building out testing infrastructure. Mina is lobbying for the federal government to invest $20 billion in ramping up supply of low-cost, easy-to-manufacture rapid tests, so people can screen themselves frequently at home for Covid-19. On Wednesday, the Biden administration announced a $1.6 billion investment into expanding test supply and increasing testing at schools.
No matter how things pan out, there’s an expectation that Covid testing is here to stay. When people present with telltale symptoms, it will probably be included in panels for a range of respiratory viruses. Testing could also play a long-term role in higher-risk situations like eating indoors, going on a cruise and attending large event venues. It’s a window into how life might look on the other side of the pandemic.—Emma Court
Still trading from there at the moment, don’t forget that it is only a Vauxhall site and Vardy’s have also recently pulled out of their Vauxhall sites. Zero point in continuing to trade to lose money on a dead franchise, Peugeot are the new Vauxhall..
If you read the latest accounts you will see that the property is clearly valued at current value, it isn’t possible to overstate our property portfolio.
Tomboy01, can you elaborate on which franchise was last held and the city please? I work for Lookers and i would like to disagree with your statement..
The NAV is based on huge losses, the property alone is worth 80p per share and this was confirmed recently in the following RNS released by the company..
The Group continues to benefit from a strong property portfolio. The net book value of freehold and leasehold properties of GBP313.7m (equivalent to 80.4p per share) at the end of the Period remains a key strength of the business.
They have forecast profits of £21m for 2021 which is hugely conservative given the fact that they will announce in April that they made circa £36m from July1st to 31st December 2020... Don’t forget that this company is leaner and meaner than when it was carrying too many dead franchises in 2018 yet they still made an operating Profit of £70.80m that year. They should be making £50m per year from 2022.... Unbelievable upside for those investors who have mastered the word “patience”
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The investors who have the patience to wait for 24 months will see many of them make a small fortune from this stock. Broker upgrades will begin to flow and a re-rating of the stock will happen soon. Once the major funds start to increase their holdings and we rid ourselves of these “i want to be rich today amateurs” we will be headed for stratospheric prices. This market is forecast to be worth over $54billion in the not too distant future.
Warren Buffet is over 90 years old, age has nothing to do with this, TB is a genius in the Motor-Trade.
What makes you think he isn’t getting involved with another company who is interested in Lookers?
Between Tony Brahmall and Peter Jones they own over 30% of Lookers.
Will be interesting to see what price he bids if he does have a go at taking it private. Wouldn’t get it for any less than 90p -100p in my opinion.
Majority Shareholder increases his holding 20.14%... Clearly see’s that this Stock v Assets and Property Portfolio is way undervalued. (Property alone is worth over 80p per share) This stock is still good value at £1
Mon, 15th Feb 2021 18:13
RNS Number : 1761P
Lookers PLC
15 February 2021
TR-1: Standard form for notification of major holdings
NOTIFICATION OF MAJOR HOLDINGS (to be sent to the relevant issuer and to the FCA in Microsoft Word format if possible)i
1a. Identity of the issuer or the underlying issuer of existing shares to which voting rights are attachedii:
Lookers plc
1b. Please indicate if the issuer is a non-UK issuer (please mark with an "X" if appropriate)
Non-UK issuer
2. Reason for the notification (please mark the appropriate box or boxes with an "X")
An acquisition or disposal of voting rights
X
An acquisition or disposal of financial instruments
An event changing the breakdown of voting rights
Other (please specify)iii:
3. Details of person subject to the notification obligationiv
Name
Douglas Charles Antony Bramall
City and country of registered office (if applicable)
4. Full name of shareholder(s) (if different from 3.)v
Name
Guernsey Investments Limited
BBH ISL Nominees Limited
Ferlim Nominees Limited
M Foody
City and country of registered office (if applicable)
5. Date on which the threshold was crossed or reachedvi:
12 February 2021
6. Date on which issuer notified (DD/MM/YYYY):
15 February 2021
7. Total positions of person(s) subject to the notification obligation
% of voting rights attached to shares (total of 8. A)
% of voting rights through financial instruments(total of 8.B 1 + 8.B 2)
Total of both in % (8.A + 8.B)
Total number of voting rights held in issuervii
Resulting situation on the date on which threshold was crossed or reached
20.14%
20.14%
390,138,374
Position of previous notification (if
applicable)
19.44%
19.44%
8. Notified details of the resulting situation on the date on which the threshold was crossed or reachedviii
A: Voting rights attached to shares
Class/type ofshares
ISIN code (if possible)
Number of voting rightsix
% of voting rights
Direct
(DTR5.1)
Indirect
(DTR5.2.1)
Direct
(DTR5.1)
Indirect
(DTR5.2.1)
GB00B17MMZ46
78,598,051
20.14%
SUBTOTAL 8. A
20.14%
B 1: Financial Instruments according to DTR5.3.1R (1) (a)
Type of financial instrument
Expirationdatex
Exercise/Conversion Periodxi
Number of voting rights that may be acquired if the instrument is
exercised/converted.
% of voting rights
SUBTOTAL 8. B 1
B 2: Financial Instruments with similar economic effect according to DTR5.3.1R (1) (b)
Type of financial instrument
Expirationdatex
Exercise/Conversion Period xi
Physical or cash
settlementxii
Number of voting rights
% of voting rights
SUBTOTAL 8.B.2
9. Information in relation to the person subject to the notification obligation (please
Bloomberg Business
Nebulizer That Vaporized Virus Starts New Australia Outbreak.
A cluster of the virulent U.K. strain of coronavirus in Australia rose to 11 on Thursday, with authorities saying it started in a Melbourne quarantine hotel by a person who used a nebulizer to treat a health condition.
The medical device, which vaporizes medication or liquid, also worked to spread the virus through mist “suspended in the air with very, very fine aerosolized particles,” said Victoria state Chief Health Officer Brett Sutton.
This was how the virus was carried out of the hotel room into the corridor, where staff walking the halls were exposed, he said.
The outbreak is yet another example of the insidious ways that SARS-CoV-2 can spread, stymieing even countries with the strictest travel and containment regimes in the world.
Infectious particles expelled from an infected person’s nose and mouth are thought to be the main source of Covid-19 infection. Although larger respiratory droplets from coughs and sneezes are the main source of transmission, a growing body of evidence is implicating smaller aerosol particles that can float in the air further and longer.
In light of that, the U.S. Centers for Disease Control and Prevention began recommending this week that Americans wear either a cloth mask with multiple layers of fabric or a surgical mask beneath a cloth one to improve protection against the coronavirus.
In Melbourne, authorities believe the virus spread from the nebulizer used by a person in a family of three quarantined in the hotel, to at least six workers. Two of the three new cases identified on Thursday were spouses of infected staff.
While testing for the virus has been ramped up in Australia’s second-largest city and investigators seek to track and isolate all contacts of the hotel workers, other regions are wary of contagion: South Australia state has announced it’s blocking arrivals from Melbourne.