Second Interim Results - Year Ended 30th Sept 1999

Lookers PLC
19 January 2000



SECOND INTERIM RESULTS FOR THE YEAR ENDED 30TH SEPTEMBER 1999

HIGHLIGHTS

Year end now changed to 31st December.

Refranchising and capital investment programme almost complete with a
reduction in turnover contained to 4.8% at £556.4m (1998 - £584.5m).

New car sales increased by 8.8% - national market down by 0.6%.

Used car sales retail up by 7.4%.

Significant increase in EPS to 10.8p (1998 - 5.8p restated).

Second interim dividend held at 5.65p (1998 - 5.65p final).

Continued strong out-performance by Charles Hurst in Northern Ireland.

Agricultural machinery division restructured and stabilised - losses reduced.

Non-core van and coach building operation now sold.

It will be of considerable benefit to the Group once the uncertainty is
removed from the marketplace in connection with car pricing.


Enquiries:

Lookers plc     Fred Maguire,Chief Executive             Tel No: 0802 934840
                Allan Marston,Financial Director         Tel No: 0161 291 0043

CHAIRMAN'S REVIEW                                                             
                                                                              
CHANGE OF YEAR END                                                            
                                                                              
Approval was given for the change in year end from September 30th to December 
31st at a meeting of Preference Shareholders.  These results to 30th September
1999 are a second interim announcement and a full report and published        
accounts will be issued covering the 15 month                          
period to 31st December 1999.                                                 

RESULTS                                                                       
                                                                              
The profit before taxation for the year to 30th September 1999 amounted to    
£6.8m compared with a restated £5.3m in the previous year.  The results have  
been prepared taking into account applicable new accounting standards and the 
figures for the previous year have therefore been restated as at the half year
on a comparable basis.  The full impact of the changes is set out at Note 3(b)
which follows.                                                                

The Directors propose that a second interim dividend of 5.65p per ordinary
share is paid which is the same as the final dividend paid last year.

CAR MARKETS

This year the T plate registration prefix was introduced in March and the V
plate introduced in September.  This has resulted in a change in buying
patterns and overall the national new car market has reduced by 0.6% over the
12 month period to 30 September 1999.  The most noticeable change was a year
on year reduction of 11% in the quarter ended 30th September 1999.  National 
figures have again been inflated as manufacturers and dealers own
registrations have continued. This registration activity has been a feature of
the market place for many years but it is now believed to be more significant
than in the past.

New car sales have increased by 8.8% over the last 12 months which compares
very favourably with the inflated national position. The increase has been
generated entirely from retail sales resulting in improved margins.

New car pricing continues to be a major issue for the industry and a
combination of statements issued by manufacturers and extensive media coverage
has created uncertainty in the market place with many customers deferring
their purchasing decisions. 

Our used cars sold retail increased by 7.4% on a year on year basis.  

REFRANCHISING AND CAPITAL INVESTMENT PROGRAMME

The various developments referred to at the half year stage have now been
completed and are all operational.  We will shortly be commencing the
refurbishment of our Land Rover dealership at Hadleigh and our future plans
include the redevelopment of our Volkswagen dealership in Oldham in line with
the Volkswagen retailing concept.  

In Northern Ireland we are making plans to increase our retail throughput from
the prime motor village site at Boucher Road.

In our agricultural division, Platts Harris completed the purchase of the 3
Townsend locations. We have since vacated the leased premises at Wisbech and
relocated the business to March near Peterborough.

RESTRUCTURING

The Toyota dealership in Norwich - a location distant from our existing
operations - has been sold.  We maintain strong links with Toyota elsewhere in
the Group and it is our intention to expand this franchise in the future.

Since 30th September we have also completed the sale of Marsden Vanplan at
Warrington.  This business was involved in van body building and coach
building for the removal industry and as a non-core activity did not feature
in our long term plans.  The exceptional profit arising from this transaction
will be included in our results to 31st December 1999 - the most significant
item being the sale of goodwill for the sum of £650,000.

TRADING PERFORMANCE

Mainland UK

The mainland motor division experienced difficult trading conditions during
the year.   Turnover reduced following the closure or sale of dealerships in
line with manufacturers refranchising plans balanced in part by volumes being
increased at on-going outlets.  There was continual downward pressure on new
car prices throughout the year which in turn influenced the used car 
market with significant falls in valuation being a recurring feature.  Stock
remains under tight control and is an ongoing priority.

Overall, our motor division results were at a lower level.  An improved result
was recorded by our Vauxhall dealerships on the Wirral and Merseyside whereas
Rover outlets continued to battle in a competitive market place with a
restricted model range.  The new Rover 75 is a first class product but is not
yet selling in the volumes originally planned.  We welcome the introduction 
of the new 25 and 45 models.

The refranchising and capital investment programme has provided us with first
class purpose built facilities for the future.  However, this has increased
the general overheads of our business and coupled with the difficult market
place, has resulted in a longer period than anticipated in bringing dealership
profitability to target in the larger market areas. As cars become even more
reliable and service intervals are extended it is essential that we continue
to drive up our revenues to provide an acceptable return on this increased
cost base. We continue to market the business strongly and have introduced
telephone call centres to provide a better interface with our customers and
develop our customers for life programme which continues unabated.

Our car delivery operation - Car & Commercial, whose fortunes are directly
tied to the success of the Rover product, operated at a much reduced level of
profitability.

The agricultural division incurred a small trading loss for the year.  The
environment is exceedingly difficult with farmers achieving very low prices
for their products.  We have radically restructured the business and the
financial result is a significant step forward when compared to the result for
1998.

Northern Ireland

Once again, Charles Hurst performed well ahead of the market and produced a
record result for the year. This was a particularly pleasing performance as
approximately 15% of the cars sold in Northern Ireland are imported from the
South.  The management have worked very effectively to control the business
and have successfully integrated the Toyota dealerships purchased last 
year.

CURRENT OUTLOOK

New car sales volumes have been at a depressed level from mid September
following the announcements by manufacturers regarding pricing and the
resulting intense media speculation.  This in turn has had a knock-on effect
on both the volumes and values of used cars.  The quarter to 31st December is
traditionally a difficult trading period and this year the problems are 
exacerbated with the outstanding pricing issues.  We believe that it is
absolutely essential to remove the uncertainty from the market place as the
Group will then be enabled to resume its progress.

Charles Hurst continues to go from strength to strength and its proven
management ability in a difficult trading period can only add further value to
the business in a more certain marketplace.  

The restructuring of Platts Harris has moved the business away from the more
difficult hill farming areas in the North and has added areas south of
Lincolnshire including some of the best farmland in the country.  The
integration of the Townsend Group and progression with the central 
core dealerships working with satellites forms a sound structural base for the
future.  Trading losses have been almost eliminated and with its lower cost
base and lower capital employed Platts Harris is well set to take advantage of
any upturn in the market place.

Our facilities on the mainland are now better than ever before and we have
implemented many improvements for the future running of the business.  We are
therefore well placed to take advantage of a more stable trading environment
when it occurs.


Craig McKinney                                                                
Chairman                                                                      
19th January 2000                                                             

The Directors announce the following unaudited results of the Group for the
twelve months ended 30th September 1999 

Consolidated Profit and Loss Account (Summarised)
        
                                                                              
  (Restated - See note 3(b))       

                                                                              
     
                                       Twelve               Twelve
                                       months               months       
                                        ended                ended
                          30th September 1999  30th September 1998            
                                  (Unaudited)             (Audited)
                                         £000                 £000            
 

Turnover                              556,365             584,490
                                      =======             =======       
       
                                   
Operating Profit                        9,886               9,120       
                                   
Provision for loss on closure/sale of 
       continuing operations             (228)             (1,726)

Profit on sale of property from 
       continuing operations              172                 806
       
                                      _______              ______
Profit before interest                  9,830               8,200
Interest payable                        3,004               2,858       
                                      _______              ______
Profit before taxation                  6,826               5,342
Taxation                                2,048               2,237
                                      _______              ______
Profit after taxation attributable
to shareholders                         4,778               3,105
                                       ======              ======

Dividends        - preference shares    1,169               1,169
                 - ordinary shares      2,754               2,754
                                       ======              ======

Earnings per ordinary share              10.8p                5.8p       
                                       ======              ======


Lookers plc
Consolidated Balance Sheet (Summarised)

                                                    
(Restated - See note 3(b))

                                30th September        30th September
                                          1999                  1998
                                    (Unaudited)             (Audited)
                                          £000                  £000
FIXED ASSETS
Intangible assets                       10,318                10,972
Tangible assets                         65,069                57,114
                                        ______                ______
                                        75,387                68,086
                                        ______                ______

CURRENT ASSETS
Stocks                                  67,026                73,216
Debtors                                 35,586                32,923
Cash at bank and in hand                    33                    29
                                       _______               _______
                                       102,645               106,168
                                       _______               _______
       
CURRENT LIABILITIES
Bank Overdraft                          12,969                 7,525
Trade Creditors                         54,187                54,287
Other Creditors                         24,004                22,811
Proposed dividend                        1,886                 1,886
                                       _______                ______
                                        93,046                86,509
                                       _______                ______

                                   
Net current assets                       9,599                19,659
                                       _______              ________

Total assets less current liabilities   84,986                87,745
Long term liabilities and provisions    22,661                26,502
                                       _______               _______
Shareholders funds                     62,325                61,243
                                       =======               =======
Shareholders funds are attributable to:
       Non-equity shareholders funds   14,613                14,614
       Equity shareholders funds       47,712                46,629
                                        ______               _______
                                        62,325                61,243
                                        ======                ======

Total borrowings                        29,167                22,859

Gearing                                     47%                   37%
                                       =======               =======




Lookers plc
Consolidated Cashflow Statement (Summarised)
                                   
       
                                 Twelve months         Twelve months
                                         ended                 ended
                                30th September        30th September
                                          1999                  1998
                                    (Unaudited)             (Audited)
                                          £000                  £000
       


Net Cash inflow from Operating 
Activities                              17,979                12,014
Interest paid                           (3,056)               (2,994)
Taxation paid                           (2,359)               (2,874)
Net Cash Outflow from Capital 
Expenditure                            (10,949)               (7,638)
Dividends Paid                          (3,923)               (3,923)

Net Cash Outflow from Financing         (3,132)                 (960)
                                        ______                ______
DECREASE IN CASH                      (5,440)               (6,375)
                                        ======                ======

                                          


Lookers plc


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.

(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 half-year to 31st March 1999 and also for the half-year to 30th
September 1999 (1998 4.0p per share).

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
33,379,111 ordinary shares in issue during the twelve month period (1998 -
33,376,928)

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 twelve months ended 30th
September 1999 - £654,000 and in the year 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 because
no taxation relief is 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.


5.     Interim Statement

       The interim statement will be posted to ordinary and preference
shareholders today.  Copies will also be available to the public at the
registered office of the company at 776 Chester Road, Stretford, Manchester
M32 0QH.