Lookers Share Discussion Threads

[woodwards26] 01/2/2021 14:49

I'm back in after many years of staying out of share dealing but I only know the motor trade and I've only just dipped in for a few .My plan is to trade between 40p and 50p until I'm more certain than I am nowA few nos an average dealer say turnover 18 to 20 million will make 175 to 225000 most of this made in March September and December. Plate change months and annual bonus month so say 150k in these 3 months combined with 75k in the other 9 made up of profit and loss months.That same dealer probably left last March at 60 k profit year to date . Lost a whopping 65 k in April but got a grip in May with click and collect but still lost 25k June took off and made 20k so at half calendar year was in loss of around 5 to 10k Ytd . July August September October probably made 30k as it included a plate change month

[jabers1] 31/1/2021 20:10

Look who’s back

Lookers has published interim results for the six months ended 30 June and has applied to the FCA to restore its share listing. The interim loss of £36.1m is much better than our £50m forecast loss, driven by a marked improvement in working capital efficiency and gross margin. With significant cost reductions (£50m annualised payroll cost), H2’s profit will almost offset the H1 loss, we upgrade from c.£20m loss to a c.£4m loss. With significant operational improvements and lower debt levels, Lookers looks well placed for recovery. We set a 75p 12 mth TP, expecting the shares to quickly reset from FY21 PER of 4.5x.

Substantial operational improvements. Towards the end of FY19, Lookers was carrying stock of £240m, average used stock levels are now c.£145m. This has not had an impact on sales volumes; average stock turn is 35-40 days rather than the 55-60 days before. Previously c.30% of stock was over 60 days old, vs 6-7% of stock in September 2020. With much faster stock turn, margins have improved materially, one of the key reasons for H1 outperformance and our full-year upgrade. Lookers has saved annualised payroll costs of c.£50m, representing c.1,500 heads.
Forecast changes. As with many retailers, Lookers has yet to give revised guidance due to the uncertainty of Lockdown 3. With H1 c.£14m ahead of forecast and the improvements in working capital driving better used car margins, coupled with the restructuring and payroll savings starting to come through in H2, we upgrade our full-year loss to £3.8m from c.£20m. For FY21, we forecast PBT of £23.7m, an upgrade of £3.1m. Were it not for Lockdown 3, we would have been more optimistic with our profit forecasts..

Twelve month target price set at 75p for relisting. Lookers is starting to look like a business transformed, with used car margins benefiting from much greater focus on working capital management and basic controls and a more efficient cost base. The customer journey is also much easier, with unaccompanied test drives (saving 25 mins), no lengthy document signing processes (now sent to customers’ homes) and contactless handover. The key question is what does normal look like? Cost savings will annualise into FY21 (c.£15m net benefit) and car margins will continue to recover thanks to working capital improvements. SMMT market forecasts of two million new car registrations (+25% from 2020) looks optimistic given Lockdown 3 and is likely to be revised down, we’re forecasting 15% growth at Lookers. Longer term, the path back to 1.5% PBT returns on sales seems a sensible expectation for normal, a level of profitability materially ahead of our current forecasts.

[daz1712] 31/1/2021 19:51

Agreed Wooodwards
Time to get back to discussing the future of Lookers in a useful manner on this forum. Going forward take each other’s numbers and text each other😂

[jabers1] 31/1/2021 09:13

🤡🤡🤡
Wobbly12326 Nov '20
Jabers1,

Your lack of experience shows.

The terms of your suggested wager could result in them opening up at 4p and "closing" at 3.95 p and I would lose.

You had probably best select maths, economics and accounts when selecting your GCSE's


Wobbly12326 Nov '20 - 14:33 - 2340
Jabers1 Based on you revised terms happy to go ahead, will get my lawyers to check the legality of doing it.

Jabers126 Nov '20 - 14:54 - 2342 of 2413 Edit

WHY DO YOU NEED TO CHECK WITH YOUR LAWYERS YOU 🤡🤡🤡 its a simple agreement and the money sits in their escrow account

[wobbly123] 30/1/2021 16:27

Jabers1

Retract your statement that I post under more than 1 name or face the consequences. You have 24 hours.

[jabers1] 30/1/2021 16:05

🤡🤡🤡🤡9313;🤡ԍ13;

THIS IS WHAT THIS CLOWN POSTED IN AUGUST


Very grim news for holders of Lookers shares. Have lowered my short close from 10p to 7p.

Wobbly12320 Aug '20 - 08:07 - 2218 of 2268
0 2 0
1) Accounts delayed again.
2) Going to revise previous years figures.
3) Trading figures when you look past the spin, not good.
4) Still have FCA investigation.
5) Possible PCP compensation
6) 2nd wave ?
7) Shrinking the number of sites.


Jabers117 Oct '20 - 12:37 - 2279 of 2409
These will fly after the announcements which will clarify everything...

Wobbly12317 🤡🤡🤡 Oct '20 - 12:51 - 2280 of 2409

Jabers1 in dreamland again

[jabers1] 30/1/2021 05:01

THE TIMES ——Lookers on road to recovery after seven-month stock market suspension

Peel Hunt reckons the shares are worth 75p, a 2021 earnings multiple of 16.

The car retailer Lookers has bounced back from seven months in the stock market sin bin, calming fearful investors by indicating that it should book only a small loss for 2020.

The stock was suspended at 21p last July after the motor dealer, hit by fraud and mis-selling, was unable to produce its 2019 results on time. After trading started again yesterday, the shares nearly doubled to close at 39½p.

[daz1712] 29/1/2021 19:51

You can go short for as long as you want, gets expensive if your wrong and it’s just a gamble
Long term say 3 years hopefully go above a pound with dividends

[woodwards26] 29/1/2021 19:41

Personally I think it will bounce around for a while before breaking out upwards as this year April becomes March.So you may do well on your short next few weeks -having never shorted how long can a short be taken over ?All this mayhem in America at the moment an American told me that today a lot of shorts had to be closed is it the same here?

[wobbly123] 29/1/2021 18:43

Daz1712,

Didn't berate just put my thoughts forward.
Having spent 2 hours going through the accounts (not the spin the, numbers)I consider it a wonderful short today at 38.5 p.

Some people have short memories I shorted a long time ago at a much higher price than todays.

When a trade is worth double the investment, selling half is a free bet.

The number crunchers will take a day or to going through the numbers, deferred tax, deferred VAT, pension shortfall etc.

[daz1712] 29/1/2021 16:50

What happened to the 1st day trading below 5p wobbly? You were right not to take the bet on but an acknowledgment that you were completely wrong to everyone who you berated for supporting the long term prospects would be good??

[debsdowner] 29/1/2021 14:55

Prior to delisting I thought the share price would bounce when it relisted and proved right the amount of fraud irrelevant to the share price fall.

[glavey] 29/1/2021 14:00

I somehow doubt that. There may be cash in the pockets of some, but then there's a lot of other things to be considered by April. Spare cash likely to go elsewhere on feel good purchases. Most investors will steer clear of this until after the next interims. Meanwhile wait for the FY.

If I held stock, which I don't, I think I'd be a seller right now.

[mickmod] 29/1/2021 12:23

I'm long on this because new car sales will go through the roof, when showrooms open up in the spring. there's a lot of cash waiting to be spent. This is an excellent recovery stock.

[diku] 29/1/2021 10:24

Bet it is tasty...

[jaf111] 29/1/2021 10:21

If it gets to 60p today "I'll eat my hat"...................

[shirley83] 29/1/2021 10:18

NT to buy. Says it all

[jabers1] 29/1/2021 10:17

Let’s all laugh at WOBBLY123 😂😂😂😂9313;🤡ԍ13;

[jabers1] 29/1/2021 10:17

Let’s all laugh at WOBBLY123 😂😂😂😂9313;🤡ԍ13;