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Lookers appoints new CEO; sees FY trade in line
5th Feb 2020 09:00
(Sharecast News) - British car dealer Lookers on Wednesday said it had appointed chief financial officer Mark Raban as chief executive as it reiterated full year guidance.
Raban joined Lookers in July as chief financial officer after working for Marshall Motor Holdings and Inchcape's retail business. Cameron Wade was appointed to the role of chief operating officer. Both posts had been vacant since last year, when the company issued a profit warning.
Lookers said it anticipated full-year underlying pre-tax profits to be in-line with expectations despite the UK new car market declining in 2019 for a third consecutive year.
Like-for-like unit sales of new vehicles over the year performed "marginally ahead" of the overall new car market, which saw registrations decline 2.4% to 2.3 million units, but dropped 6.6% in the fourth quarter.
Used car sales remained "stable", up 3.8%, while after-sales gross profits were "broadly flat". The company said trading during the first few weeks of 2020 had been "broadly in line with expectations".
Lookers said four of the 15 sites it identified for disposal last November had now been sold, generating proceeds of £8.3m. The remainder and other legacy surplus properties would be sold during 2020.
Raban said: "2019 was a challenging year for Lookers. The declining new car market, political and economic uncertainty and increased operating costs were all factors in the group's decline in profitability.
"The board remains confident about the long-term prospects for the group, benefiting from excellent OEM relationships, strategic trading locations and a strong freehold property portfolio."
As of 0900 GMT, Lookers shares were up 1.28% at 55.30p.
Raban joined Lookers in July as chief financial officer after working for Marshall Motor Holdings and Inchcape's retail business. Cameron Wade was appointed to the role of chief operating officer. Both posts had been vacant since last year, when the company issued a profit warning.
Lookers said it anticipated full-year underlying pre-tax profits to be in-line with expectations despite the UK new car market declining in 2019 for a third consecutive year.
Like-for-like unit sales of new vehicles over the year performed "marginally ahead" of the overall new car market, which saw registrations decline 2.4% to 2.3 million units, but dropped 6.6% in the fourth quarter.
Used car sales remained "stable", up 3.8%, while after-sales gross profits were "broadly flat". The company said trading during the first few weeks of 2020 had been "broadly in line with expectations".
Lookers said four of the 15 sites it identified for disposal last November had now been sold, generating proceeds of £8.3m. The remainder and other legacy surplus properties would be sold during 2020.
Raban said: "2019 was a challenging year for Lookers. The declining new car market, political and economic uncertainty and increased operating costs were all factors in the group's decline in profitability.
"The board remains confident about the long-term prospects for the group, benefiting from excellent OEM relationships, strategic trading locations and a strong freehold property portfolio."
As of 0900 GMT, Lookers shares were up 1.28% at 55.30p.