Results - 15 Months to 31 December 1999

Lookers PLC
29 March 2000


LOOKERS PLC
Preliminary Results for the 15 month period ended 31 December 1999

Highlights

*  New car sales increased by 6.4% - reduction in the national market

*  Used car sales retail up 6.2%

*  Significant increase in EPS to 10.1p (1998 - 5.8p restated)

*  Property revaluation surplus - £7.75m

*  Continued strong performance by Charles Hurst in Northern Ireland

*  Preferred candidates for additional dealerships with many manufacturers

*  Non-core car delivery operation sold since the year end

*  Growth in Internet and E-Commerce business

*  Extension and improvement of telephone call centres

*  Retail facilities now comparable with the best in the industry

*  It will be of considerable benefit to the Group once the uncertainty is    
   removed from the market place regarding new car pricing

CHAIRMAN'S REVIEW

RESULTS

The profit before taxation for the fifteen months ended 31st December 1999 -
our new financial year end - amounted to £6.4M.  This compares with a restated
£5.3M in the previous financial year ended 30th September 1998. - see Note
3(b).

The taxation charge is at a reduced rate of 25% (1998 - 42%) due to additional
relief being available in the accounting period.

The year end gearing was held at 40% (1998 - 37%) including the improvement to
facilities as part of the refranchising programme.

A first interim dividend of 2.6p per ordinary share and a second interim
dividend of 5.65p per ordinary share making a total of 8.25p for the period
have already been declared. (1998 - total 8.25p).  It is not the Directors'
intention to recommend a final dividend for the period.

CAR MARKETS

The national car market ended the 1999 calendar year at almost 2.2M units - a
reduction of 2.2% on 1998.  The most notable movement was a reduction of 9.4%
in the second half of 1999 compared with the same period in 1998.  This
reflected the uncertainty in the marketplace which was exacerbated by
extensive press and media coverage regarding new car pricing.

By comparison our own new car sales increased by 6.4% in the 15 month period
compared to the same trading period last year. The entire increase came from
higher margin retail sales.

Our used cars sold retail increased by 6.2% on a like for like basis.

GROUP DEVELOPMENTS

The refurbishment of our Land Rover dealership at Hadleigh is progressing
well.

In Northern Ireland we intend to transfer our paint and bodyshop facilities to
a separate site in Belfast so that we are able to further develop our prime
retail complex at Boucher Road.

We are now preferred candidates for additional dealerships on many car
manufacturers lists and are evaluating several propositions on offer to us.
Renault recently acquired a shareholding stake in Nissan and by combining
their engineering, design and marketing skills should produce more
appealing models for both franchises in the years ahead.  We believe that this
new relationship will help with our future developments with the formation of
joint Renault and Nissan retail facilities using separate customer facing
areas but with common support facilities resulting in improved operational
efficiency and potential for cost savings.


Since the financial year end we have completed the sale of Car & Commercial
Deliveries Company Limited.  This business was involved in the delivery of
vehicles for Rover and as a non-core activity did not feature in our long term
plans.  The transaction was completed at asset value and the proceeds will
be used to help fund our continuing capital investment programme.

We continue to invest in training and the overall development of the business.
The magazine Automotive Management at its annual awards judged the Lookers
Group to have the best training and the most innovative aftersales techniques
in the UK retail motor trade.  Two gold awards are wonderful recognition of
the hard work and efforts put into these projects.

Internet and E-Commerce

We already have a presence on the Internet and are continuing to further
develop and improve our sites making them more user friendly with a wider
range of product offerings. A facility for direct service bookings is already
established and this is being extended to other areas of our aftersales
business.

Our longer term objective is to market new and used cars on a nation-wide
basis using our proven motor trade strengths with the ability to take in part
exchange vehicles. We also operate internet sites in conjunction with car
manufacturers and links have been established with well known operators
specialising in the sale of used cars.  The launch of a specialist service
to fleet customers is imminent giving them the facility to source vehicles to
their required specification and carry out the order process entirely on-line.

A dedicated team is driving our e-Commerce business forward and many leads are
being generated from the tens of thousands of hits to our sites.

We will continue to allocate further resources and investment to these
projects as many more good business opportunities are being presented to us.

TRADING PERFORMANCE

Mainland UK

The mainland motor division experienced difficult trading conditions
throughout the period.  The uncertainty over new car pricing surfaced towards
the end of September - the month in which the new 'V' registration plate was
introduced. This uncertainty continued through the remainder of the year with
both the press and media suggesting that the prices of cars were too high. 
The last quarter of the calendar year is traditionally a difficult trading
period.  This coupled with the pricing uncertainty caused new car retail
customers to desert showrooms and the values of used cars plummeted. Stock
was very tightly controlled and turned over as quickly as possible to mitigate
any falls in valuation. In an attempt to close deals on the small volume of
business available, inevitably retained margins fell.

Overall our continuing motor division outlets recorded a small loss for the
period.  However, this result was adversely affected by the difficult October
to December period being included twice in the extended accounting period of
15 months. Improved results were recorded by our Vauxhall depots whereas
other franchises proved to be less successful.

We have extended our centralised telephone call centres which we have
successfully operated for over a year.  These cover all of our dealerships in
particular areas and we have seen significant volume growth in aftersales
activities, an improvement in customer satisfaction levels and created
additional sales opportunities for vehicles.  This allows us to continue to
develop and promote our 'customers for life' programme.

Our non-core activities of car delivery and van body building operated at a
much reduced level of profitability during the period.  Marsden Vanplan was
sold during the last quarter of the financial period resulting in a profit on
sale of operations amounting to £822,000.  Car & Commercial Deliveries
Company Limited has been sold since the financial year end.

At September 1999 the agricultural division had incurred a small trading loss
for the year.  The last quarter of the calendar year to 31st December produced
very difficult operating conditions increasing the loss for the 15 month
period.  Notwithstanding this, the trading loss for the full accounting period
has reduced by more than 50% when compared with the same previous period.

Northern Ireland

Charles Hurst recorded an excellent performance well ahead of the record
result produced last year.  The motor dealerships performed well from the
strong aftersales base and the overall result improved further by the profit
contribution from the motorcycle operation. This is a remarkable achievement
when considering that approximately 15% of the cars sold in Northern Ireland
are represented by lower priced imports from the South and the disruption to
the marketplace caused by the uncertainty generated from the new car pricing
issue.  The management have worked extremely effectively in combating the
trading difficulties.

CURRENT OUTLOOK

In contrast to the national position where it is consistently reported there
is a shortage of new retail customers our own sales on the mainland for the
first two months have started the year on an encouraging note with a 9%
increase in retail sales and more than twice as many fleet sales.  Our intake
of orders for March - the introduction of the 'W' registration plate - is
running at a similar level to last year.  In this trading environment margins
continue to be under pressure.  We await the findings of the Competition
Commission with interest so that the Group may be able to resume its progress
fully after the final resolution of the pricing issue.

The outstanding performance at Charles Hurst continues and whilst volumes
declined in the important month of January, the overall profit performance
achieved budget.  This good start to the financial year in a key trading month
in Northern Ireland augurs well for the future.  The management have proved
their ability to secure good trading results even from difficult trading
conditions.

The recent announcement regarding the sale of Rover is being carefully
monitored until such time as the full information is available.

Platts Harris are continuing to make progress - albeit not as quickly as we
would have hoped.  Farming incomes remain very low and here again tight stock
management remains a priority. We continue to rationalise and restructure the
business for a more successful operation in the future.

We are very proud of the high standard of our retail facilities and continue
to implement changes to operate the business more efficiently in the future. 
We believe that there is now a pent-up demand in the system and anticipate
that we will be able to turn this to a profitable advantage following the
return of a more stable trading environment.


Craig McKinney
Chairman
29 March 2000


Enquiries :

Lookers plc    Fred Maguire, Chief Executive
               Tel No: 0161 291 0043/Mobile [phone]
               Allan Marston, Financial Director
               Tel No:   0161 291 0043



The Directors announce the following unaudited results of the Group for the
fifteen months ended 31 December 1999.

CONSOLIDATED PROFIT AND LOSS ACCOUNT (Summarised)

                                                 (Restated -
                                                    see note
                                                       3(b))
                                    15 months      12 months
                                     ended 31       ended 30
                                     December      September
                                         1999           1998
                                  (Unaudited)      (Audited)
                                         £000           £000
                                                            
Turnover                              652,509        584,490
                                      =======        =======
                                                            
Operating Profit                        9,187          9,120
Profit/(loss) on closure/sale                               
of operations                             948        (1,726)
Profit on sale of properties                -            806
                                      -------        -------
                                                            
Profit before interest                 10,135          8,200
Interest payable                        3,693          2,858
                                      -------        -------
Profit before taxation                  6,442          5,342
Taxation                                1,611          2,237
                                      -------        -------
                                                            
Profit after taxation                                       
attributable to shareholders            4,831          3,105
                                      =======        =======
                                                            
Dividends - preference shares           1,169          1,169
          - accrued preference            292              -
shares
          - ordinary shares             2,754          2,754
                                      =======        =======
                                                            
Earnings per ordinary share             10.1p           5.8p
                                        =====           ====


CONSOLIDATED BALANCE SHEET (Summarised)

                                                   (Restated
                                                 -see note 3
                                                        (b))
                                  31 December   30 September
                                         1999           1998
                                  (Unaudited)      (Audited)
                                         £000           £000
FIXED ASSETS                                                
Intangible assets                      10,155         10,972
Tangible assets                        70,225         57,114
                                      -------        -------
                                       80,380         68,086
                                      -------        -------
                                                            
CURRENT ASSETS                                              
Stocks                                 64,036         73,216
Debtors                                22,260         32,923
Cash at bank and in hand                   29             29
                                      -------        -------
                                       86,325        106,168
                                      -------        -------
                                                            
CURRENT LIABILITIES                                         
Bank Overdraft                         11,332          7,525
Trade Creditors                        42,022         54,287
Other Creditors                        22,020         22,811
Proposed dividend                       1,886          1,886
                                      -------        -------
                                       77,260         86,509
                                      -------        -------
                                                            
Net current assets                      9,065         19,659
                                      -------        -------
Total assets less current              89,445         87,745
liabilities
Long term liabilities and              19,836         26,502
provisions                            -------        -------
Shareholders' funds                    69,609         61,243
                                      =======        =======
Shareholders' funds are                                     
attributable to:
   Non-equity shareholders'            14,613         14,614
funds
   Equity shareholders' funds          54,996         46,629
                                      -------        -------
                                       69,609         61,243
                                      =======        =======
                                                            
Total borrowings                       27,736         22,859
                                      =======        =======
                                                            
Gearing                                   40%            37%
                                      =======        =======
                                                            

CONSOLIDATED CASHFLOW STATEMENT (Summarised)

                                    15 months      12 months
                                     ended 31       ended 30
                                     December      September
                                         1999           1998
                                  (Unaudited)      (Audited)
                                         £000           £000
                                                            
Net Cash inflow from Operating         15,197         12,014
Activities
Interest paid                         (3,686)        (2,994)
Taxation paid                         (2,212)        (2,874)
Net Cash Inflow/(Outflow) from                              
Capital Expenditure                  (10,253)        (7,638)
Dividends Paid                        (3,923)        (3,923)
Net Cash Inflow/(Outflow) from          1,070          (960)
Financing                             -------        -------
DECREASE IN CASH                      (3,807)        (6,375)
                                      =======        =======

Notes:

1. Dividends

(a)Ordinary shares of 25p
   An interim dividend of 2.6p per share (1998 - 2.6p per
   share) was paid on 30th September 1999.  A second interim
   dividend of 5.65p per share (1998 - 5.65p per share final
   dividend) is payable on 28th April 2000 to shareholders on
   the register at the close of business on 14th April 2000.
   No final dividend is proposed.

(b)8% Convertible cumulative redeemable preference shares of
   £1 each
   Preference dividends of 4.0p per share (1998 - 4.0p per
   share) have been paid for the six months to 31st March
   1999 and also for the six months to 30th September 1999
   (1998 - 4.0p per share).  The accrued preference share
   dividend relates to that portion of the dividend earned
   from 1st October 1999 to 31st December 1999.

2. Earnings per share
   
   The earnings per share is based on profit on ordinary
   activities after taxation and preference dividends
   calculated on a weighted average of 33,379,153 ordinary
   shares in issue during the fifteen month period (1998 -
   33,377,928).  There are no potential ordinary shares or
   share options that give rise to a dilution of earnings per
   share (1998 - same).

3. Comparative Figures

(a)  The accounts for the year ended 30th September 1998 are
     not full accounts.  A copy of the full accounts for that
     year, on which the Auditors have issued an unqualified
     report, has been delivered to the Registrar of Companies.

(b)  Compliance with FRS 10 - Goodwill and Intangible Assets
     and FRS 12 - Provisions, Contingent Liabilities and
     Contingent Assets.

     The Group has complied with the transitional provisions
     of FRS 10 and with FRS 12 which have become effective
     since the previous financial year.

     Goodwill, which was previously written off directly to
     reserves has been capitalised and amortised over its
     estimated useful life, which the Directors consider to
     range from ten to twenty years. As a result, operating
     profit is stated after charging goodwill amortisation in
     the fifteen months ended 31st December 1999 - £817,000
     and in the twelve months ended 30th September 1998 -
     £1,258,000.

     The provision for loss/closure of continuing operations
     arising from the manufacturers' refranchising programme,
     which was previously set up and charged during the year
     ended 30th September 1997 has now been reversed and
     subsequently charged to the profit and loss account
     during the years ended 30th September 1997 and 1998 in
     accordance with FRS 12.

     The implementation of FRS 12 has resulted in changes to
     the timing of the recognition of costs. This has not
     resulted in any material change to the underlying
     accounting estimates originally made.  Any anticipated
     credits relating to property sales are now required to
     pass through the profit and loss account when realised.

     There is no taxation effect arising from the adjustments
     above as taxation relief is not available for the
     amortisation of goodwill, and taxation relief in respect
     of the provision previously set up is only recognised in
     the financial statements when the expenditure has
     actually been incurred.

     In the year ended 30th September 1998, the effects of the
     restatements have been to reduce profits before taxation
     by £3,261,000 and to increase net assets following the
     capitalisation of goodwill previously set off against
     reserves and the reversing of the gross provision by
     £8,957,000.

4. Year 2000

   Careful and detailed  preparations  for  the  Millennium
   ensured that the date change on 1st January 2000 caused  no
   disruption to the operation of the business.

   Efforts recently have been concentrated on contingency
   planning to ensure business continuity in the event of
   third party disruption during the early part of 2000, both
   centrally for group-wide issues and also locally at each
   outlet.  Future costs in respect of Millennium compliance
   are not expected to be significant.

5. Post Balance Sheet Events

   On 6th March 2000, the net assets, liabilities and
   business of Car and Commercial Deliveries Company Limited
   were sold.  The total consideration was approximately £2.7
   million which equated to net book value.