Lookers delays results for a fourth time

Lookers has delayed the publication of its annual results for a fourth time while investigations into its accounts continue.

It said in March it had found ‘potentially fraudulent transactions.’ Investigations into the accounts are being conducted by Grant Thornton, which reported at the end of June the company had overstated profitability by £19m over serveral years.

It’s draft report also found ‘fraudulent expense claims’ and areas where financial controls ‘require strengthening’.

In a statement Lookers said: “The board continues to believe that the likely magnitude of the potential restatements referred to above will not prevent 2019 from remaining profitable at the underlying profit before tax level.”

Lookers announced in June it would cut 12 dealerships and 1,500 jobs in a bid to reduce costs by £50m a year.

Chief executive Mark Raban said: “This has been a challenging period for Lookers, but it’s encouraging that we are beginning to see some healthy signs of recovery in vehicle sales since the easing of lockdown.”