Lookers Share Discussion Threads

[werty5] 06/10/2014 23:45

Figures released today show a high level of new cars are being brought in fact in greater numbers the past 10 years but also that the speed of the increase is slowing and the market might be coming off the boil slightly. I expect at least a few more nice trading statements all the same so for now this remains a hold for me.

[werty5] 16/9/2014 08:13

Could be a reverse head and shoulders about to form?

[werty5] 24/8/2014 17:55

Friday's edition of the investors chronicle rates Lookers as a buy.Even after peering under the bonnet, it's difficult to find fault with motor dealer Lookers' (LOOK) half-year results. In fact, the motor division's pre-tax profit surged 43% per cent to £37.5m, driven by strong margin growth across all divisions. New car retail sales volumes grew 15 per cent on a like-for-like basis, outstripping the 12 per cent growth in the wider market. And the profit per unit - which has come under pressure among some of Lookers' peers - jumped 5 per cent. The used car segment benefited from an increasing number of website-generated leads, as well as good stock management. That pushed sales up 5 per cent and profit per unit by 7 per cent, which is impressive given the wider market contracted in the first five months of the year. Good cost controls in the aftersales division - 50 per cent of group gross profit - contributed to a 100 basis point increase in the divisional gross margin to 42.8 per cent. The business continued to benefit from a growing number of newer cars in the market - a segment primarily catered for by the franchised motor dealers such as Lookers - which resulted in a 6 per cent rise in divisional turnover. The parts division enjoyed a good half-year, too, and turnover there rose 6 per cent to £104.7m Broker Numis Securities expects full-year pre-tax profit of £60.3m, giving EPS of 11.7p (from £48.1m and 10.2p in 2013).Lookers' used car and aftersales divisions are well-placed to continue growing, even when the new car market cools, while acquisitions offer further scope for forecast upgrades. That leaves a forward PE ratio of 11 looking too cheap.

[manrobert] 19/8/2014 13:28

three large trades ,look like sells

[bigbertie] 14/8/2014 11:13

OK, so it's win-win for us holders! I'll go with that.

[ramridge] 13/8/2014 14:00

bigbertie - my point (not well made) is that increasing the dividend to a decent level would attract income seeking investors which would in turn move the share price upwards.

[bigbertie] 13/8/2014 13:33

These were great results, and with "healthy" orders for new cars in Sept, so I'm surprised at the lukewarm reaction. Perhaps Ramridge is right - the yield is looking a bit mean, but I'm happy and holding.

[mortimer7] 13/8/2014 11:37

I see the share price has retraced after the early uplift following this mornings results.
The 4 largest UK listed Motor Retailers are continuing to post excellent trading results (Pendragon, Lookers, Inchcape, Vertu) yet their shares are just stagnating
in recent months.
Perhaps the timing of their results being July/Aug when the markets are at a lull doesn't help. That said Vertu are still to come in October so perhaps they will be the catalyst for the sector.

[ramridge] 13/8/2014 08:48

This share would be far more attractive if they up the divided yield to 3% +. They can well afford it. Cost of dividends in YE 2013 was £9.5m. Extra cost would be around £6m to £15.5m for a 3% DY. Both the balance sheet and cashflows can bear that comfortably. Today's interim shows net inflows of £43m for just the half year. Or alternatively at least declare a special dividend.

[manrobert] 13/8/2014 08:18

hopefully get a good press in the morning,they look firmly based on fwd p.e of about 9.

[leeson31] 13/8/2014 07:28

yeah, i was thinking maybe ~13.5p/share FY........ cheap though at ~134p/share. roughly ~9.9 x FY eps.

imo as long as ~129p holds, this should be back on its way up to ~150p+ area, just for recovery, not to mind the bigger eps.

[cockneyrebel] 13/8/2014 07:25

Results ahead of expectations - must wallop the 11.2p eps forecasts imo

CR

[leeson31] 13/8/2014 07:02

Financial highlights

-- Revenue increased to GBP1.6 billion (2013: GBP1.24 billion) - up 29%

-- *Adjusted profit before tax increased to GBP40.2 million (2013: GBP29.6 million) - up 36%

-- Profit before tax increased to GBP37.7 million (2013: GBP27.4 million) - up 38%
-- Earnings per share increased to 7.59p (2013: 5.36p) - up 42%
-- Operational cash flow improved to GBP55.9 million (2013: GBP42.4 million)
-- Increase in interim dividend of 10% to 0.97p per share (2013: 0.88p)

Operational highlights

-- Record performance from the motor division
-- Strong growth in new car volumes and margins
-- Further growth in used car volumes and margins
-- Revenue and margins increased in aftersales
-- Further growth from our market leading independent aftermarket parts division

[cockneyrebel] 11/8/2014 12:20

Results Weds - PDG, VTU etc all rather upbeat recently imo.

CR

[miikke] 07/8/2014 09:48

Buying opportunity may be approaching...

[cockneyrebel] 05/8/2014 15:32

Huge buys today.

PDG results rather good today too imo.

CR

[manrobert] 15/7/2014 12:23

hopefully after all the director buys,

[bigbertie] 15/7/2014 10:32

14th August must be interims - hopefully good reading

[manrobert] 15/7/2014 08:43

very low trading,last years results 14th .august

[bigbertie] 08/7/2014 09:20

the sale looks like a clear-out from the Colborne acquisition - it was the only dealership which was not Audi/VW. I see Cambria paid £5m goodwill so hopefully it is a good profit to LOOK on the 2 deals. Reading between the lines, Jag may have pushed Cambria to buy as they already own the other Jag dealerships locally? Just my musings.....Do you own speculation!

[manrobert] 08/7/2014 07:51

re the sale I notice the chief ex of cambria refers to their past success at turning round underperforming dealerships so each party putting their own slant on the deal.

[manrobert] 08/7/2014 07:44

looking back to last years announcements I see that results for the half year were announced on 14th aug and there was not any further trading update prior to results.i think we should be confident of good results juging by recent increase in standard life holding and buyin by directors one of whome bt 110,000 at up to 149,

[simon templar qc] 08/7/2014 07:37

So did I we were both at first fooled. Any thoughts?

A trading update by competition which states Lookers sale of a franchise to benefit the competition!!!!

[manrobert] 08/7/2014 07:32

when I first read the trading update I assumed it was for lookers but it actually looks like its for cambria so we still await trading update for lookers,

[simon templar qc] 08/7/2014 07:11

Very questionable sale by Lookers, the sale to significantly benefit the purchasers earrings!!!!