Lookers tanks as it delays results due to possible fraud
Lookers shares tanked on Wednesday after the car dealership delayed the release of its results due to possible fraud.
FTSE All-Share
4,423.59
17:14 26/04/24
FTSE Small Cap
6,484.28
16:59 26/04/24
General Retailers
3,910.25
16:59 26/04/24
Lookers
129.80p
16:39 06/10/23
In a statement after the close on Tuesday, the company said: "In the final stages of preparing its results for the financial year ended 31 December 2019, the company has identified potentially fraudulent transactions in one of its operating divisions."
As a result, it has decided to postpone the announcement of its results until the second half of April.
Lookers said that while initial findings are "not material in the context of the group", it is appointing an external adviser to lead a full investigation into the matter.
At 0820 GMT, the shares were down 24% to 28.05p.
Broker Liberum said: "The FY trading update in January suggested that new CEO was making a good start at stabilising the business, with better cash management coming through quickly and strongly.
"Clearly disappointing then to discover potential fraud, on top of the ongoing FCA investigation and tough trading conditions."