(Alliance News) - Lookers PLC on Wednesday said it swung to loss in 2019 but revenue rose on improved demand for used cars.
The Altrincham, England-based car dealership chain said revenue for 2019 fell to GBP4.79 billion from GBP4.83 billion a year earlier, resulting in pretax loss of GBP45.5 million versus GBP41.9 million profit a year ago.
Net operating expenses increased to GBP526.3 million from GBP442.3 million year-on-year.
Lookers said revenue growth was driven principally by the total 5.0% increase in used car revenue and a total 6.7% increase in aftersales revenue.
The company noted that the investigations identified a cash expenses fraud which led to a loss of GBP327,000 in a single division and which accumulated over several years.
Lookers cut its dividend per share to 1.48 pence from 4.08p paid a year prior.
Going forward ,the company said temporary closure of its dealerships throughout the initial lockdown had a significant impact on financial performance, with the company expecting to report a material underlying pretax loss in the first half of 2020.
The company said it will publish its half-year results for 2020 "as soon as possible" in December.
Lookers shares were untraded in London on Wednesday, last closing at 21.00 pence each.
By Evelina Grecenko; evelinagrecenko@alliancenews.com
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