Our Business

Industry UpdateThe new car market increased by 2.3% to 2.69 million cars, its highest ever level and we believe it will be relatively stable in 2017. The used car market has an annual transaction value of approximately 8 million vehicles, which we also believe will stay stable. The increase in nance and PCP presents us with higher customer retention opportunities going forward.

Sources: SMMT, Experian (2006 to 2014) and Lookers (2015 to 2018)

The increase in nance and PCP New car market

Used vehicle market

Manufacturer brands in our portfolio Car & commercial vehicles

Motorcycles

Our locations

Continuing growth
Our turnover increased by 17% to £4.3 billion, with strong growth from both new and used car sales. Adjusted pro t before tax for the year increased by 7% to £7 7.1 million, which is the highest trading result for the company to date. Other key performance elements were improvements in both aftersales turnover and margin.

Revenue £4.3 billion

Adjusted Pro t from Operations £94.7m*

Adjusted Pro t before Tax £77.1m*

Adjusted Earnings per Share 15.87p

Adjusted Earnings Per Share (Pence)

Growth across the business

Group profit before tax

Executive Directors
Andy Bruce
Chief Executive Officer

Having studied business, mainly marketing, at Strathclyde University, Andy began his career in the motor industry in 1986 as a graduate trainee at Land Rover. He advanced to a number of dealer facing roles and eventually became Sales Director for Land Rover in the UK. Andy joined the Group in 2000 and was appointed to the Board in 2002. In March 2010 he was appointed as Managing Director of the Motor Division and Chief Operating Officer in March 2013. Andy became Group Chief Executive on 1st January 2014.The last year under Andy’s leadership has seen Lookers post a record profit before tax of £77.1m and the Group’s revenue move past £4 billion for the rst time. Andy continues to drive our proven business model of ‘Right Brands, Right Locations’ which has seen a signi cant restructure of our portfolio including the acquisition of both Drayton and Knights Group making us the largest Mercedes-Benz dealer group in the UK and bringing the prestigious BMW and MINI brands into the portfolio.The year ahead will see no let up with a continued commitment to upgrade our retail environments to provide the best customer experience, investment in key touch points and continual optimising of our brand portfolio among priorities.

2016 highlights

Awarded CEO of the Year at the 2016 Motor Trader Industry Awards
Instrumental in bringing Drayton Group and Knights Group into the Lookers family
Driving force behind the ‘Right Brands, Right Locations’ business model

"Our strategy of acting as a consolidator, as well as growing organically, leaves us ideally placed for further growth and increased earnings in 2017 and beyond."

– Attribution

Nigel McMinn
Chief Operating Officer
Nigel is a Chartered Accountant and, prior to joining Lookers, held several senior positions; latterly as Chief Executive of Ben eld Motor Group, and previously with Pendragon plc and Reg Vardy plc. He joined the Group and the Board in August 2013 as Managing Director of Lookers Motor Division and was promoted in 2017 to a newly created position of Chief Operating Officer, which will see him focus on the execution of the company’s strategy.

Nigel chairs our new Development Board. This team will concentrate on developing strategic initiatives that meet our longer terms ambitions and our goal to be best known for retail experience.Under Nigel’s leadership, the company will continue to focus on operational excellence and performance metrics. Through technology, culture, process and marketing Lookers will provide a relaxed, seamless, online-channel retail experience.In the past year under Nigel’s management, gross pro t increased 15% in fleet, 2% in new retail, 8% in used and 9% in aftersales. Finance penetration increased from 79% to 83%. Our gross margin in aftersales rose from 43.3% to 45% and we made good progress in creating capacity in used cars and aftersales.

2016 highlights

Promoted from Managing Director to COO
Chair of our new Development Board
Oversaw signi cant organic gains in eet and retail share
Company was awarded Dealer Group of the Year at the 2016 Motor Trader Industry Awards

"The future looks bright for Lookers. We will turn over more than £4bn this year. We would like to add more brands to our business but it is not scale for scale’s sake."

– Nigel McMinn, Chief Operating Officer

Robin Gregson
Chief Financial Officer
Robin is a Chartered Accountant who started his career and quali ed with Deloitte. He has previously held senior nance positions as Group Finance Director of CD Bramall plc and Cardpoint plc. Robin joined the group and the Board in May 2009 as Group Finance Director, a position he has held since it was changed to Chief Financial Officer in 2017 in recognition of his contribution to the company.Robin has overseen an eighth consecutive year of growth for Lookers with revenue increased to £4.3 billion, a robust capital structure and strong cash ow. He was heavily involved in the acquisitionsof both Knights Group and Drayton Group for £26.6m and £56.3m respectively and the sale of our parts division for £126m.The last year has seen our earnings per share up 4% at 15.87p and our annual dividend increase 17% to 3.64p.Our financial strength allowed us to invest £30m in 2016 on our retail estate, including major new projects like Jaguar Land Rover in London, Mercedes-Benz in Tonbridge, and in Newcastle upon Tyne state-of-the-art dealerships for Volkswagen and Nissan.We have also invested in technology both online and instore to help us to achieve our goal of being best known for retail experience.

2016 highlights

Promoted to Chief Financial Of cer
Oversaw record turnover and pro t for the group
The company delivered strong cash ow and reduced debt to £74.1m from £161.7 the previous year

"The group balance sheet has been strengthened by strong operational cash ow and substantial headroom in bank facilities. This provides financial security to grow the business through strategic acquisitions at a time of significant consolidation opportunities within the sector."

– Robin Gregson, Chief Financial Officer

Non Executive Directors

2016 has been a year of significant transformation at Lookers. The sale of the Parts Division and the acquisitions of the Drayton and Knights businesses were managed very smoothly and resulted in significant contributions. Integrating acquired businesses into the existing group structure, culture and brand portfolio is something Lookers does particularly well.

– Phil White, Chairman

Tony Bramall
Appointed in June 2006. Chairman
and Director of CD Bramall plc until February 2004.

Bill Holmes
Appointed in June 2008. Previously managing partner of the Leeds office of BDO Stoy Hayward, whom he joined in 2002 from Arthur Andersen where he had been a partner since 1988. Prior to joining Arthur Anderson he quali ed as an Inspector of Taxes with HM Revenue & Customs.

Richard Walker
Appointed in February 2014. Previously an Executive Director of Talk Talk. Prior to Talk Talk’s demerger with Carphone Warehouse Group plc, Richard spent 18 years with the retailer and held various positions including Managing Director for Europe and COO of the UK Business.

Sally Cabrini
Appointed in January 2016. Currently Business Services Director for United Utilities with responsibility for information technology and human resources.
Sally joined United Utilities in 2007 as HR Operations Director and started her career in HR with Rowntree Mackintosh Ltd before working in senior roles for Northern Foods and then as a consultant to a number of companies.