The forecourt of Lookers Honda in Nottingham. Shares in Lookers are at their lowest point since 2009. Photograph: David Sillitoe/The Guardian

Shares in Lookers have tumbled to another 30%

Aminy Andawi
Business & Industry
Automotive & Equipment
Jul 13, 2019
1696
One of the largest car dealership, Lookers, currently experiencing a tumbled for another 30% of its shares after the firm issued a profits warning due to the challenging trading conditions. As the margins get weak and the customer confidence is being hit by political and economic uncertainty, the first-half profits will push down by 25% and will fall below forecasts.

After the collapse in diesel sales, Britain’s car manufacturers and traders have been buffeted. Andy Bruce, Lookers's chief executive said that the falling sales of the company were entirely due to Brexit as Britain is near to exit from the EU. Moreover, new car registrations have fallen to 4.9% in June while British car production fell by 15.5% in May.

Lookers imports various vehicles from multiple manufacturers and the company is now at their lowest point since 2009. When the Financial Conduct Authority had opened an investigation into its sales processes, the company’s shares tumbled by 20%. Furthermore, Robin Gregson, Lookers chief financial officer has also announced his departure.

According to an analyst at Liberium, in recent years Lookers had outperformed the car retail market and this time it is seems to be lost. The biggest risk to the sector is the impact of Brexit as well as consumer confidence.

Source: https://www.theguardian.com/business/2019/jul/12/lookers-shares-fall-30-with-car-dealership-chief-blaming-brexit

Business , Automotive