Finance Monthly CFO Awards 2017 Winners Edition

With the banks eventually changing their attitudes, while still erring on the side of caution, Gregson was able turn his attention to growth. While he says conditions have “changed for the better”; people have long memories and will be weary of a repeat performance. While he may have learned lessons from the past, Gregson is acutely aware of current challenges and is once again providing not only his impressive financial acumen to find solutions, but also his calm and measured influence. The uncertainty created by elections, the referendum and Brexit in particular has impacted the automotive sector. Gregson says: “Our business is very much dependent on consumer confidence. Also, the UK is the second biggest car market for German cars. If tariffs are applied, it won’t be helpful. As an industry, it is important that sense prevails.” Challenges these may be but Gregson believes Lookers’ sound business model based on the “right brands in the right locations”, and its aim to continue being “meaningfully and noticeably different in order to achieve operational excellence” will help it continue its success. He points to the group’s focus on digital technology as a way of securing a strong future and help to extend its sphere of influence. It’s also the group’s “team mentality” which Gregson believes will help it navigate any choppy waters it may face. This openness extends to the relationship Lookers now has with its external partners, including its panel of banks. He says: “They are now very supportive and helpful and are generally proactive where they can be, even if they are still trying to sell you something.” Of course his team will be more than a little grateful to have such a dependable and composed individual as the group’s CFO, someone who has been able to adapt to change within the business and out in the wider market. It’s this kind of acumen that has won him a lot of friends and strengthened his relationships with those all-important suppliers and stakeholders. “The group balance sheet has been strengthened by strong operational cash flow and substantial headroom in bank facilities,” he says: “This provides financial security to grow the business through strategic acquisitions at a time of significant consolidation opportunities within the sector.” Firms Profile Lookers is a national motor retailer headquartered in Manchester. Founded in 1908 to sell bicycles and accessories, today it trades across the UK and Ireland, representing 30 volume and high-end automotive marques including Mercedes-Benz, Audi, Lexus, VW, Jaguar and BMW, from 153 franchised dealerships across the UK., Lookers’ 2016 revenues exceeded £4bn, including the sale of 200,000 new and used cars and vans. The group was listed on the London Stock Exchange in 1973. Lookers has enjoyed eight years of consecutive growth, and recently announcing its interim results for the first half of 2017. Financial results for the six months to 30 June 2017: • Revenue increased 5% to £2.46 billion (2016: £2.34 billion) with growth from new and used cars, as well as aftersales. • *Operating profit from continuing operations increased 13% to £58.1 million (2016: £51.6 million). • *Adjusted profit before tax from continuing operations increased 18% to £50.2 million (2016: £42.6 million). • Profit before tax from continuing operations increased by 14% to £44.6 million (2016: £39.2 million). • Profit before tax of £44.6 million (2016: £46.7 million). • Earnings per share from continuing operations up 15% at 9.07p (2016: 7.90p). • Increase in interim dividend of 10% to 1.41p per share (2016: 1.28p). • Net debt reduced to £61.9 million (31 December 2016: £74.1 million). www.finance-monthly.com 27 UNITED KINGDOM Finance Monthly CFO Awards 2017