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 under ....
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Lookers Plc (LOOK LN) - Road to recovery
- Published:
26 Feb 2021 -
Author:
Rachel Birkett, CFA -
Pages:
27
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 under ....