Contrary to fears of a disaster, Lookers has delivered an excellent trading update with positive LFL GP performance in all 3 business segments including New. Not only this but management has indicated some support from its OEMs in response to the weaker new car market, which will help to “reduce operating costs” and help “offset the effect of lower new car volumes going forward”. This performance puts it on track to meet market forecasts, meaning no further downgrades as feared, and potential scope to advance next year too. Given the fall in the share price, anomalous valuation and positive performance the Board has agreed to a buyback programme at the current price. Expect the shares to respond positively today as a result, and deservedly so.