Lookers to miss deadline for 2019 results, shares to be suspended
Beleaguered car dealer Lookers said on Monday that its shares are likely to be suspended from trading in July as it still needs more time to publish its annual accounts.
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The company - which delayed the release of its annual results in March after identifying potential fraud in one of its divisions - was expecting to release them by the end of June, subject to the conclusion of banking discussions and the completion of the audit process.
However, due to additional procedures it and auditor Deloitte now need to perform, they will not be published by 30 June, which was the last date allowed for publication under the Financial Conduct Authority's disclosure guidance and transparency rules. As a result, it expects the shares to be temporarily suspended from trading from 1 July.
"The company's priority and focus is the production of the 2019 results at the earliest possible date and by no later than the end of August 2020," it said.
Lookers also said that Deloitte plans to resign as auditor following the publication of the 2019 results. "The company is currently engaged in a competitive tender process to appoint a new auditor," it said.
Last week, Lookers announced plans to cut 1,500 jobs and close more dealerships in a bid to make savings after taking a hit from coronavirus lockdown closures. It also said at the time that the internal fraud investigation being carried out by Grant Thornton was nearing completion.