Shares are down this morning off the back of Group's half year results and caution of the market's future.
Companies: Lookers plc
Lookers have released their interims to 30 June 2017 today, and despite the numbers looking good, Group CEO Andy Bruce has aired his concerns about the future of the new car market.
Shares are down around 5% in response to the Group's noted apprehension of the market, combined with the current political environment, Brexit and weaker exchange rates creating a "degree of uncertainty".
On the flip side, H1 17 saw revenue increase by 5% to £2.46 billion, adjusted PBT increasing 18% to £50.2 million, EPS up 15% at 9.07p and an increase in interim dividend of 10% to 1.41p per share. Net debt also fell by over £10m.
Government plans to crack down on petrol and diesel vehicles is set to have a drastic impact on a market that saw record sales numbers in 2015 and 2016.
The report this morning noted "the excellent performance of the group in the first half of the year builds on what was already a strong comparative for the previous year. However, we have seen a softening in the new car market in recent months.'
The board believes that the results for the year ending 31 December 2017 should still be in line with current expectations.
Singers is currently valued at 7x PE ratio against a market with a median average of 12.5, - "unduly low" according to Singers. Average dividend yield is 3.4% compared to an industry median 4.1%. These numbers reflect that while current trading figures remain positive, this may not be the case in years to come.