Lookers Plc 
 
Annual Report 
and Financial 
Statements 2006  1
Lookers plc Report & Financial Statements 2006
Financial Highlights 2
Chairman’s Review 5
Chief Executive’s Review 9
Finance Director’s Review 21
Profile of Directors 24
Directors’ Report 29
Statements on Corporate Governance 34
Corporate Social Responsibility Review 38
Directors’ Remuneration Report 39
Independent Auditors’ Report 43
Principal Accounting Policies 45
Income Statements 49
Statements of Recognised 
Income and Expense 50
Balance Sheets 51
Cash Flow Statements 52
Notes to the Financial Statements 53
Trading Outlets and Interests in 
Major Subsidiary Companies 72
Five Year Record 73
Notice of Meeting 74
Contents 
Financial Calendar
12 March 2007
Announcement of results for the full year
18 May 2007
Annual General Meeting 2
Lookers plc Report & Financial Statements 2006
Lookers plc is one of the UK’s largest motor retailers.
The Group holds the franchises for most leading manufacturer
marques and is represented throughout England, in Northern
Ireland by the Charles Hurst Group, a major trading subsidiary,
and also in Scotland trading as Taggarts.
The Group owns FPS Distribution Limited, the largest parts
wholesaler to the UK automotive aftermarket and Apec
Limited.
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Financial Highlights
2006
2003
2002
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2006
Turnover
*Adjusted Operating Profit
2003
2002
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2005
2006
*Adjusted Profit Before Tax
*Adjusted Earnings Per Share
Dividends Per Share
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2006
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*Adjusted pre exceptional items, goodwill impairment, and amortisation of intangible assets.
2002-2003 UK Gaap. 2004 onwards IFRS.
£m £m £m Pence (P) Pence (P) 3
Lookers plc Report & Financial Statements 2006
Financial Highlights
(continued) 
Turnover
£1,426.7m up 16%
Operating Profit
£36.6m
*
up 35%
Adjusted profit before tax
£26.4m
*
up 47%
Adjusted earnings per share
10.63p
†*
up 41%
Dividends  per share
3.50p
†
up 15%
*Before exceptional items, impairment and amortisation.
†All per share figures are adjusted for the share split on a 5 to 1 basis.
” ...We remain committed to broadening our
revenue streams, further developing our
close relationships with our manufacturer
partners and maximising the performance
and efficiencies of our franchises through
our decentralised management structure
and market area strategy.”
Chief Executive, Ken Surgenor. 4
Lookers plc Report & Financial Statements 2006 5
Lookers plc Report & Financial Statements 2006
“...we have been able 
to deliver excellent returns
to our shareholders
over the year.”
Phil White 
Chairman
Chairman’s 
Review 2006 6
Lookers plc Report & Financial Statements 2006
Achieving 
customers for life... 7
Lookers plc Report & Financial Statements 2006
I am pleased to report that Lookers has continued to achieve excellent progress in 2006 resulting in significant
growth in profits, earnings and dividends. These results have been achieved both through strong organic growth
across our complementary business streams and also through the successful integration of acquisitions across the
business.
Financial Highlights and Dividend
The Group has continued to grow both organically and by acquisition across all its businesses. Turnover has advanced by
16 per cent to over £1.4 billion. Adjusted* profit before tax at £26.4 million has increased by 47 per cent against £18.0 million
last year and is comfortably ahead of our own forecast of £25.1 million announced in April 2006. Strong cash flow from
operations of £55.7 million was generated and year end gearing remained flat at 79 per cent despite spending nearly £50
million on acquisitions and investment in new and refurbished facilities. Our new retail and used retail sales continue to
outperform the market and have increased by 5 per cent and 6 per cent respectively. Given this very strong performance
and our confidence in our future prospects, the Board is recommending a final dividend of 2.2p, making a total dividend for
the year of 3.5p, an increase of 15 per cent over last year.
Corporate Developments
Despite the significant corporate distraction in the early part of 2006, we remained focused on growing the business. During
the year we acquired seventeen prestige outlets including Chrysler, Jeep, Dodge, Land Rover and Lexus. We were delighted
to be awarded a Mercedes-Benz franchise market area which we now operate in four locations. We were also awarded the
Land Rover franchise for Glasgow North, bringing the total of additional prestige outlets to eighteen. These developments
further strengthen the Group’s franchise portfolio, particularly in the South East of England.
In line with our stated strategy, we continue to develop complementary business streams alongside our franchise business.
In January 2006 we launched our third Used Car Supermarket in the South East in Essex. In the second half of 2006 we
acquired five acres in a key location in Sheffield to develop a major facility to replace the existing premises which our parts
distribution business, FPS, had outgrown. This facility became operational in the last few weeks of December 2006 as
planned.
We remain ambitious to grow our businesses and will continue to make sound acquisitions and investments which are
earnings enhancing and deliver our required level of returns.
The Future
Lookers is well positioned to continue to make good progress in today’s trading environment. Our markets offer excellent
growth prospects and remain fragmented. Due to the broad revenue streams we enjoy, benefiting from strong contributions
from both used cars and aftersales as well as new cars, a small downturn forecast in the new car market over 2007 will not
detract from our ambitious growth plans. In recent years Lookers has consistently outperformed the new car market and we
are confident that this will continue into 2007.
January is the key registration month in Northern Ireland and 2007 has seen our Charles Hurst business record its best ever
start to the year. Moreover, the number of new vehicles delivered so far in March and the orders still to be delivered by the
dealerships on the mainland UK indicate a good performance for March leading to a strong first quarter for the year.
I would like to take this opportunity to thank all the team at Lookers for their unstinting support in what was an eventful
year. The whole Board recognises that these results could not have been achieved without their hard work and dedication.
I would also like to thank our shareholders for supporting management during this period. As a result, we have been able to
deliver excellent returns to our shareholders over the year. As a team, we have delivered an excellent performance which
firmly reinforces our position as one of the leading consolidators in the motor retail industry.
Fred Maguire retired as Chairman of the Board after more than twenty years with the Group and I wish him well in his
retirement.
On a personal note, I was delighted to be welcomed onto the Board in September 2006, during an exciting period of growth
and development for Lookers and look forward to contributing to the Group’s future success.
P. M. White
Chairman
12 March 2007
Chairman’s Review 2006
*Adjusted pre exceptional items, goodwill impairment and amortisation of intangible assets. 8
Lookers plc Report & Financial Statements 2006 9
Lookers plc Report & Financial Statements 2006
“Our continuing success 
is a testament to the
effectiveness of our
approach and the 
strategy we have been
implementing for a 
number of years.”
Ken Surgenor 
Chief Executive
Chief Executive’s 
Review 2006
opposite page  – Lookers Mercedes-Benz  –  Brighton  (acquisition) 10
Lookers plc Report & Financial Statements 2006
Chevrolet 3
Citroën 1
Hyundai 2
Kia 3
Mazda 1
Nissan 2
Peugeot 2
Renault 12
Seat 1
Toyota 6
Vauxhall 18
Volkswagen 5
Prestige 48
Volume 56
Motorcycles 2
Aston Martin 1
Bentley 1
Chrysler,Jeep,Dodge 4
Ferrari  1
Honda 5
Jaguar 7
Land Rover 10
Lexus  4
Maserati  1
Mercedes-Benz  4
Saab 3
Smart 1
Volvo 6
Proportion invested in 
Volume brands
BMW 1
Yamaha 1
Proportion invested in 
Motorcycle brands
Proportion invested in 
Prestige brands
Overview of Franchise breakdown
(top) Taggarts Jaguar/Land Rover / Volvo – Glasgow  (new build)
(bottom) Lookers Lexus – Hatfield  (acquisition) 11
Lookers plc Report & Financial Statements 2006 12
Lookers plc Report & Financial Statements 2006
Another year of outstanding
performance as one of the UK’s
leading Motor Retail Groups
(top left) Lookers Mercedes-Benz  –  Redhill  (acquisition)
(top right) Lookers Mercedes-Benz  –  Gatwick  (acquisition)
(bottom) Lookers Mercedes-Benz  –  Eastbourne  (acquisition) 13
Lookers plc Report & Financial Statements 2006
I am pleased to report these record results and excellent performance, reflecting the continued implementation
of our successful strategy, including the development of complementary business streams, close relationships with
manufacturer partners and a decentralised management structure which delivers superior returns from the
franchises we operate. 
We continue to develop all three channels of our business through investment in existing operations and through selected
acquisitions and as a result we now have one of the broadest revenue streams in the industry which enables us to
outperform the market against the background of a slightly reduced new car market.
This is a proven strategy we have been pursuing for some time to broaden our revenue streams, to open up new growth
opportunities whilst reducing our reliance on the new car market. As a result, new car sales represented only 27 per cent of
gross profit, with used cars and aftersales representing 20 per cent and 53 per cent respectively.
Acquisitions
The fragmented nature of the motor retail and parts distribution industry continues to offer us significant opportunities to
develop our business and Lookers’ proven ability to successfully integrate acquisitions and retain local management
remains key to the Group’s success.
In March 2006 we acquired six Premier Automotive Group (“PAG”) dealerships from HR Owen for a consideration of £5.4
million. These comprised of two Jaguar, two Land Rover and two Volvo dealerships located in Colchester, Ipswich and Bury
St. Edmunds. The acquisition was in line with the Group’s strategy to expand its existing PAG territory and the business has
been successfully integrated and is performing to expectations.
In August we acquired a Chrysler, Jeep, Dodge outlet in Liverpool for a consideration of £1.3 million including the freehold
premises.
In September we acquired a further 10 dealerships from HR Owen for a total consideration of £20.9 million. The acquisition
includes four Mercedes-Benz, two Land Rover, two Lexus and two Chrysler, Jeep, Dodge outlets in the South East and has
significantly improved our mix of prestige brands and re-introduced Mercedes-Benz into our franchise portfolio. The
integration of these ten outlets has now been completed and we are delighted that they are performing in line with
expectations.
Financial Commentary and Dividend
Turnover has increased to £1.43 billion from £1.23 billion last year, representing growth of 16 per cent. We have continued
to drive operating efficiencies and cost reductions across the business whilst both integrating acquisitions and growing
organically. Consequently we have achieved an improvement in the adjusted *operating margin from 2.2 per cent to 2.6 per
cent, an increase of 18 per cent.
I am delighted to be able to report a 35 per cent increase in adjusted *profit from operations from £27.1 million to £36.6
million. Even more pleasing is the fact that our underlying businesses grew very strongly contributing £8.0 million of this
increase.
Profit before exceptional items, impairment of goodwill and amortisation of intangible assets increased by an impressive 47
per cent to £26.4 million (2005: £18.0 million), generating a 41 per cent increase in adjusted* earnings per share of 10.63p
(2005: 7.54p).
Dividend
Following last year’s excellent performance and reflecting our continued confidence in the Group’s prospects, the Board is
proposing a final dividend of 2.20p, bringing the total dividend for the year to 3.50p. This 15 per cent increase on 2005
reflects our commitment to a more progressive dividend policy, as outlined previously. Subject to final approval at the
Annual General Meeting, the final dividend will be paid on 31 May 2007 to shareholders on the register at 13 April 2007.
Operating Review - Franchised Businesses
We are delighted to have continued to outperform the market across our franchise business. Lookers’ new car retail sales
were ahead by 5 per cent against a market down 4 per cent.
Chief Executive’s Review 2006
*Adjusted pre exceptional items, goodwill impairment and amortisation of intangible assets. 14
Lookers plc Report & Financial Statements 2006
This strong performance reflects a combination of our broad base of manufacturing partners with whom we have close
relationships, a wide geographic spread across the United Kingdom and our decentralised management structure which
empowers key franchise directors and local management.
On the volume side of the business, Vauxhall has had a strong year despite the disruptions from an ongoing refurbishment
programme across a number of our Vauxhall outlets. In particular, at St. Helens we demolished the existing facility and
completely rebuilt it to provide a far better customer experience in our showroom, used car display and service capabilities.
We currently have 18 Vauxhall outlets operating across the significant market areas of the North West, Midlands and
Northern Ireland.
During 2006 we signed a franchise partnership with the Korean value brand Kia, introducing the franchise to the Group
under both the Lookers and Charles Hurst brands and opened dealerships in Macclesfield, Stockport and Belfast. Through
these dealerships we have recently launched the new Kia ‘C sector’ Cee’d model, the first Kia model to be built in Europe.
This partnership complements our existing portfolio of franchises and we are looking forward to building up our
relationship with Kia Motors in the future.
PAG has had a good year and we now represent PAG across 25 outlets throughout the significant market areas of the South
East, West of Scotland and Northern Ireland. These include the 8 dealerships we acquired during the year from HR Owen
which have complemented our PAG franchises in the South East. These dealerships have been successfully integrated and
are trading in line with expectations.
2006 has seen a number of developments across our PAG sites. In Scotland we were awarded the Land Rover franchise for
Glasgow from 1 July. We redeveloped our existing solus Jaguar site into an excellent facility in Glasgow under the Taggarts
brand to also incorporate both Land Rover and Volvo. The redevelopment of the Motherwell site has also been completed
on time and according to schedule, resulting in a multi-franchise site accommodating Hyundai, Jaguar, Mazda and Volvo.
Toyota and Lexus have performed well during the year with Toyota benefiting from the refurbishment of six of its outlets in
2005, which has generated a higher customer footfall.
Charles Hurst has once again had an excellent year. It now includes 26 dealerships representing 18 brands.The Charles Hurst
Specialist Car Division continues to go from strength to strength and highlights for the year included the launch of the
Bentley Continental GTC, Ferrari 599 GTB and more recently the Maserati Quattroporte automatic. In September 2006 we
took the decision to introduce the Charles Hurst brand into England. Two of our London-based Land Rover dealerships,
acquired from HR Owen in September 2006, have been integrated under the Charles Hurst name. Charles Hurst has been
associated with Land Rover since its inception and is unrivalled in terms of heritage and is therefore felt to be a more
suitable brand for the London Land Rover dealerships.
Used Car Supermarkets
Our expansion into the Used Car Supermarket business in 2005 was in line with our stated strategy of broadening our
revenue streams by expansion into complementary business areas. A growing number of the vehicles sold by these outlets
are sourced from our existing franchise network, vehicles which would otherwise have been traded at auction.
In January 2006 we opened our third site in the South East which was a greenfield location. We now have a presence in the
South East, South West and the Midlands. In addition, we rationalised all three sites onto a standard platform.The result from
our used car supermarkets was below our expectations, however, as the new site matures and the impact of this
rationalisation together with the recent strengthening of the management team takes effect, we expect the benefits to flow
through from the second quarter of 2007.
Parts Distribution
Our parts distribution business continues to exceed expectations and has grown both turnover and profits.
FPS Distribution (“FPS”) has achieved an excellent performance during the year with profit from operations up 11 per cent
on last year, despite the disruption in the last quarter of relocating our national distribution centre coupled with dual
running costs.
We have previously announced the development of an 80,000 square foot footprint purpose-built facility in Sheffield to
enable the expansion of the distribution side of the business.This facility was completed and became fully operational from
December 2006. With a double mezzanine floor, it provides 140,000 square foot of storage and is capable of being further
expanded to over 200,000 square foot of storage capacity.
In October 2006, FPS was awarded the ‘UK Supplier of the Year’ award at the CAT Awards. This award is testament to the
division’s excellent performance and I take this opportunity to congratulate the FPS team on yet another successful year.
Chief Executive’s Review 2006
(continued)
(continued on page 19) 15
Lookers plc Report & Financial Statements 2006
(top)  Lookers Chrysler, Jeep, Dodge  –  Hatfield  &  Romford  (acquisitions)
(second row) Lookers Lexus – Brighton, Lookers Smart  –  Brighton  (acquisitions)
(third row) Lookers Kia  –  Macclesfield  &  Stockport  (re-franchised)
(bottom) Taggarts Hyundai/Jaguar/Mazda/Volvo –  Motherwell (re-development) 16
Lookers plc Report & Financial Statements 2006
FPS Distribution Centre - Sheffield  (new build) 17
Lookers plc Report & Financial Statements 2006 18
Lookers plc Report & Financial Statements 2006 19
Lookers plc Report & Financial Statements 2006
Apec, our braking parts specialist, has also had an excellent year, performing ahead of expectations and we have recently
completed a warehouse reorganisation for this part of the business to support further sales growth in 2007. We intend to
launch a new range of hydraulic brake parts on to the market in the second quarter of 2007 and this should lay down the
platform for additional growth in the second half of 2007, and more significantly in 2008.
The Board
There have been several changes to the composition of the Board over the last twelve months. In April 2006, Neil Clyne
resigned as a Non-Executive Director after serving six years, following the disposal of GE’s entire holding in the Group. In
September 2006, Fred Maguire stepped down as Chairman and from the Board; and in January 2007, David Blakeman
retired as Director and Company Secretary. Both had been with the Group for over twenty years.
On behalf of my colleagues on the Board, I would like to thank them for their valuable contribution to the Group’s growth,
particularly in the last few years.
Tony Bramall, who has a wealth of motor industry knowledge, was appointed to the Board as a Non-Executive Director at
an extraordinary general meeting in June 2006 and Phil White was appointed Chairman, replacing Fred Maguire, in
September 2006.
We welcome Phil and Tony to the Board during this exciting period of the next stage of the growth of the Group.
Outlook
2007 has started positively. In Northern Ireland, January is a key month for new car registrations and I am delighted to report
a strong performance ahead of what was a solid performance in 2006.
The critical month of March has started very well with new cars delivered in the first week of March ahead of last year on a
like-for-like basis.
We have a number of acquisition opportunities under review. We intend to use our strong balance sheet and cash flow to
make suitable and earnings-enhancing acquisitions across all three business areas.
Our continuing success is a testament to the effectiveness of our approach and the strategy we have been implementing
for a number of years. Going forward we remain committed to broadening our revenue streams, further developing our
close relationships with our manufacturer partners and maximising the performance and efficiencies of our franchises
through our decentralised management structure and market area strategy.
We look forward to the year with confidence.
H. K. Surgenor 
Chief  Executive
12 March 2007
(opposite top) Charles Hurst Land Rover – Park Royal  (acquisition)
(opposite bottom)  Lookers Vauxhall – St. Helens  (new build)
Chief Executive’s Review 2006
(continued from page 14) 20
Lookers plc Report & Financial Statements 2006 21
Lookers plc Report & Financial Statements 2006
“Over the past five years
dividends have grown
at a compound rate of
13 per cent” ...
David Dyson 
Finance Director
Finance Director’s 
Review 2006 22
Lookers plc Report & Financial Statements 2006
...”with strong cash flow from
operations of £55.7m.” 23
Lookers plc Report & Financial Statements 2006
Turnover has increased by 16 per cent from £1.23 billion to £1.43 billion of which well over one third was organic.
Gross margin has again been lifted by 70 basis points from 12.2 per cent to 12.9 per cent.  Consequently we have
seen a significant 35 per cent increase in profit from operations before impairment, amortisation and exceptional
items.
The net impact of acquisition and disposals on profit from operations was small and the significant increase in profit from
operations has come about due to the performance of the underlying businesses.
Our full year adjusted* operating margin has further increased from 2.2 per cent in 2005 to 2.6 per cent in 2006, an increase
of 18 per cent, following a similar level of growth last year.
Profit before tax for the year was £21.4 million against £16.4 million, but before impairment, amortisation and exceptional
items was £26.4 million, 47 per cent ahead of the £18.0 million reported last year. This has resulted in adjusted* earnings per
share of 10.63p, an increase of 41 per cent over the previous year.
Net exceptional items amount to a charge of £4.1 million against £0.7 million last year.This all relates to the bid defence costs
as other items net out to zero.
Over the past five years we have increased earnings and dividends at a compound growth rate of 22 per cent and 13 per
cent respectively.
Cash Flow and Capital Expenditure
The Group once more enjoyed strong cash flow from operations of £55.7 million and despite spending nearly £50 million
on acquisitions and investment in new/refurbished facilities, our gearing ended the year flat at 79 per cent. We arranged a
£200 million facility in September 2006 of which £82 million was utilised at the year end, providing significant headroom for
additional expansion. We continue to hedge interest rates to ensure a degree of certainty over the Group’s blended
borrowing costs.
Dividends
The total dividend of 3.5 pence represents an increase of 15 per cent and is covered 3 times based on adjusted* earnings.
The Group introduced a scrip dividend option for the first time in respect of the interim dividend payable in November 2004
and has offered this alternative for every dividend payment since. To the end of December 2006, the take-up of this option
has been particularly successful with approximately 2.7 million of new shares being admitted to the Stock Exchange.
Pension Deficit
The Group has been actively managing its pension liability. Not only has the Group continued to fund the deficit by
contributing an additional £2.1 million per annum which commenced in 2005 but we have also taken active measures to
reduce our exposure to this liability. The reported deficit has reduced from £19.2 million to £11.5 million in 2006.
David Dyson
Finance Director
12 March 2007
Finance Director’s Review 2006
*Adjusted pre exceptional items, goodwill impairment and amortisation of intangible assets. 24
Lookers plc Report & Financial Statements 2006
2. David Dyson: Finance Director
Aged 48. Chartered Accountant. Joined the Group in 1992 as Group
Financial Controller after 12 years with Deloitte, Manchester. Appointed to
the Board in 2002.
3. David Blakeman: Company Secretary (retired from Board in January 2007)
Aged 56. Solicitor. Joined the Group in 1984 and appointed a Director in 1989.
In addition to his duties as Company Secretary he has responsibility for Group
property and human resources.
4. Brian Schumacker: Operations Director
Aged 58. Joined the Group in 1982, becoming a Regional Director in 1995.
Appointed as Director in 2000, he has Group responsibility for Chevrolet
(England), Chrysler, Jeep, Dodge (England), Honda, Kia (England), Mercedes-
Benz, Renault (England), Saab, Seat, Smart, Vauxhall (England), Volkswagen,
Group bodyshops, Internet and sub-prime operations.
1. Ken Surgenor: Chief Executive
Aged 62. Commenced as a Director with Charles Hurst in 1986. Deputy
Managing Director of the Charles Hurst Group in 1995, and appointed
Managing Director in November 1996. Appointed to the Board in 1998
becoming Group Managing Director in January 2001 and appointed as Chief
Executive in January 2002.
Executive Directors 25
Lookers plc Report & Financial Statements 2006
6. Terry Wainwright: Operations Director
Aged 59. Joined the Group in 2004 following the acquisition of FPS.
Appointed to the Board in October 2005, he has responsibility for the Group’s
Parts Division. He has over 35 years experience in the Independent
Automotive Aftermarket and has held senior positions with Quinton Hazel,
GKN and Uniparts Group.
5. Andrew Bruce: Operations Director
Aged 41. Joined the Group in 2000 and appointed to the Board  in 2002. He was
formerly UK Sales Director for Land Rover, and has Group responsibility for
Chrysler, Jeep, Dodge (N.I.), Citroën, Hyundai, Kia (N.I.), Motorcycles, Lexus, Mazda,
Nissan, PAG, Peugeot, Renault (N.I.), Specialist Cars,Toyota and Vauxhall (N.I.). 26
Lookers plc Report & Financial Statements 2006
8. Tony BramallΔ
Aged 71. Appointed in June 2006. Chairman and Director of CD Bramall plc
until February 2004.
8. John Brown † ¥Δ
Aged 62. Appointed in May 2005. Chartered Certified Accountant. Currently
Non-Executive Director of Henry Boot Plc and Chairman of AIM listed Novera
Energy Plc, Voller Energy Plc and Scott Harris Plc. Until July 2005 he was Chief
Executive of Speedy Hire Plc, a company he founded in 1977 which is the
market leader in its field.
9. David Mace * † ¥Δ
Aged 52. Appointed in 2002. Currently a Non-Executive Director of Inspired
Gaming Group Plc.
7. Phil White: Chairman ¥ Δ
Aged 57. Appointed in September 2006. Chief Executive of National Express
for nearly 10 years transforming it into one of the UK’s leading
transportation Groups.
Non-Executive Directors
*Senior Independent Director † Member of the Audit Committee ¥ Member of the Remuneration Committee Δ Member of the Nomination Committee 27
Lookers plc Report & Financial Statements 2006
“I would like to take this
opportunity to thank all the team
at Lookers for their unstinting
support in what was an eventful
year. The whole Board recognises
that these results could not have
been achieved without their hard
work and dedication. I would also
like to thank our shareholders for
supporting management during
this period.”
Chairman, P .M.White. 28
Lookers plc Report & Financial Statements 2006
Financial 
Statements 2006 29
Lookers plc Report & Financial Statements 2006
Directors’ Report
for the year ended 31 December 2006
The Directors have pleasure in submitting their report and the audited financial statements for the year ended 31 December 2006.
1. Activities
The main activities of the Group are the sale, hire and maintenance of motor vehicles and motorcycles, including the sale of tyres, oil,
parts and accessories.
2. Enhanced Business Review
An analysis of the functional performance of the Group, along with an analysis of financial Key Performance Indicators (“KPIs”) is provided
on pages 2 to 23. The main financial KPIs of the group are turnover, adjusted* profit before tax, adjusted* earnings per share, gearing
and cash flow from operations. The additional information required to be disclosed in the Enhanced Business Review is shown below.
The Group’s business activities, financial condition, results of operations or the Company’s share price could be affected by any or all of
the following risks or uncertainties:
Block Exemption
Block Exemption is a complex set of rules that defines how new vehicles are supplied, distributed and dealt with after they are sold.
These rules were changed in 2003 and certain parts became effective in 2005 scrapping the restrictions on the number of dealers
operating within a territory, and allowing the provision of aftersales support to be separate from the sale of new vehicles.The Group has
yet to see any impact of these changes, though the Board is aware of the possible competition that these changes could bring to our
established businesses. By ensuring that our franchise businesses continue concentrating on customer service, the Board believe that
the Group will minimise the impact of these, and any future changes to Block Exemption rules.
Competitive nature of the market
The motor vehicle distribution market is highly competitive and comprises a small number of large dealer networks, similar to Lookers,
down to a large number of much smaller operators. In addition, the market includes internet-based dealers and private individuals.The
franchised businesses also compete in the aftersales market which comprises of similar franchised businesses, supply and fit chains, and
a large number of small independent garages and bodyshops.The market therefore offers customers different options depending upon
price and quality of service they wish to take, with owners of new and nearly new vehicles tending to use the franchised businesses and
owners of older vehicles tending towards the small independent provider.The Group’s franchised businesses rely on the quality of their
customer service and the ability to adjust pricing, enabling them to react to local competitive conditions.
The parts distribution market operates in a very competitive market place, dominated by a few large players. The differentiator in this
market is the quality of customer service offered by the Group’s businesses which continues to give the competitive edge where price
differences would not be enough.
Exchange rates
The Group is affected by currency fluctuations to the extent that a large proportion of our manufacturer partners either source parts or
manufacture vehicles overseas. In the past, the strong appreciation of the Yen made it difficult for Japanese importers to price their
vehicles competitively. In recent years, Sterling has appreciated against most currencies, notably the Euro, allowing imported vehicles to
be priced more competitively.The Board is aware of the uncertainties this causes and the only protection that can be taken is to ensure
the Group retains a broad mix of the major manufacturers, both UK and overseas, to limit the effect.
Government legislation
In addition to Block Exemption rules noted above, changes to the government’s transport policy together with potential legislation
covering both congestion charging and carbon emissions could adversely affect the Group’s profitability if, as a result, customers choose
to use alternative forms of transport. Changes in the government’s taxation policies could also adversely affect the Group’s profitability.
Information systems
The Group is dependent upon a number of business critical systems which, if interrupted for any length of time, could have a material
effect on the efficient running of the Group’s businesses.The Board has implemented a series of contingency plans which would enable
the Group to resume operations within a short space of time, thus mitigating the likelihood of material loss.
Manufacturers’ financial stability
The Group relies on its manufacturer partners for a significant proportion of its revenues and profits. The demise of Rover, for example,
highlighted the effect that the loss of a manufacturer can cause to the short-term profitability of a retailer partner. The Group has
attempted to mitigate this risk by having trading relationships with a large number of the manufacturers, so that the impact of any one
manufacturer failing would be lessened.
Manufacturers’ influence
The Group’s activities are also influenced by the manufacturers in other ways. The timing, frequency and efficiency of new model 
roll-outs and changes in consumers’ perception of these models and brands could materially affect the Group’s business. Similarly,
*Adjusted pre exceptional items, goodwill impairment and amortisation of intangible assets. 30
Lookers plc Report & Financial Statements 2006
manufacturers use a series of incentive schemes to support new car sales, warranty programmes etc. and changes or discontinuation of
these schemes could also affect the Group’s business. By representing 27 marques, the Group believes that this diversity reduces the
impact to the Group that manufacturers’ influence could cause.
Market consolidation
The new car retailing market is currently going through a period of consolidation. Whilst seeing the Group as a consolidator, the Board
is aware that there is a risk that a larger group may make a bid which could have an adverse effect on the performance of the Group.
Though the Board has an obligation to review any takeover offer it receives, it will, none the less, reject any offer it deems inappropriately
values the Group.This may well mean that the Group incurs significant cost in an attempt to ensure that shareholders receive full value
for their shares.The Board recognises that market consolidation is both a threat and an opportunity and ensures that the Group actively
pursues suitable earnings-enhancing acquisitions to ensure shareholder value growth.
UK Economy
The new and used car markets are influenced by general economic conditions, including changes in interest rates, fuel prices, indirect
taxation and other factors which affect levels of consumer confidence.The market for new cars has seen a decline, compared with 2004
which was a record year. If this decline continues over a number of years then it would have an adverse impact on the earnings of the
Group, though this would likely be mitigated by potential increases in both the used car market and the aftersales market as customers
substitute nearly new for new, or spend more keeping their old vehicles roadworthy.
3. Dividends and Shares
Ordinary shares of 5p each, following a 5 for 1 share split on 3 July 2006.
An interim dividend of 1.30p per share (2005: 0.95p per share) was paid on 30 November 2006 and, subject to shareholders’ approval, a
final dividend of 2.20p per share (2005: 2.10p per share) is to be paid on 31 May 2007.
4. Directors
The following were Directors of the Company at the end of the financial year. Their interests in the share capital of the Company were
as follows:
31.12.06 31.12.05
P . M. White 14,300 -
H. K. Surgenor 1,005,917 737,745
D. V. Dyson 224,759 96,925
D. J. Blakeman 675,815 619,710
B. Schumacker 485,235 313,175
A. C. Bruce 180,203 -
T. M. Wainwright 28,000 -
J. E. Brown 51,130 50,000
D. C. Mace - -
D. C. A. Bramall 43,835,710 -
Details of Directors share options are shown in the Directors’ Remuneration Report.
All holdings are beneficial.
There was no change in the interests of the Directors in shares or share options of the Company between 31 December 2006
and 12 March 2007.
The mid-market price of the ordinary shares at 31 December 2006 was 174.5p and the range during the year was 91.0p to 178.0p.
Directors retire by rotation. H. K. Surgenor, D. V. Dyson and B. Schumacker retire and, being eligible, offer themselves for re-election.
D. C. A. Bramall and P . M. White were appointed Directors on 30 June 2006, and 4 September 2006 respectively. In accordance with the
Articles of Association, P . M. White will retire at the Annual General Meeting and, being eligible, offers himself for re-election.
Neither D. C. A. Bramall nor P . M. White have service contracts with the Company. Both have written terms of engagement.
N. Clyne and F. S. Maguire resigned from the Board on 28 April 2006 and 4 September 2006 respectively. D. J. Blakeman resigned from
the Board on 2 January 2007.
Directors’ Report
for the year ended 31 December 2006 (continued) 31
Lookers plc Report & Financial Statements 2006
There are no other contracts with the Company or its subsidiaries in which a Director of the Company has any interest, other than service
contracts (Executive Directors) or letters of appointment (Non-Executive Directors).
5. Approval Of The Directors’ Remuneration Report
The Directors’ Remuneration Report will be laid before the Annual General Meeting for adoption as a separate resolution from the
Auditors’ Report and the Company’s accounts for the year ended 31 December 2006.
6. Employees
Employees are encouraged to discuss with management any matters which they are concerned about and factors affecting the Group.
In addition, the Board takes account of employees’ interests when making decisions. Suggestions from employees aimed at improving
the Group’s performance are welcomed.
A significant number of employees are remunerated partly by profit-related bonus schemes.
The Group Newsletter (Outlook) is circulated periodically to all employees. The purpose of the Newsletter is to keep employees up to
date with Group developments and activities. Communicating in this manner ensures a consistent message.
Long service awards were made during the year to those staff with 25 years’ continuous service. Special awards were also made to those
staff reaching 40 and 50 years’ service.
All employment policies have been updated to conform with current legislation.
It is the Group’s policy to encourage career development for all employees to help staff achieve job satisfaction and increase personal
motivation.
7. Ethical Employment
It is the Group’s policy to offer equal opportunities to disabled persons applying for vacancies and provide them with the same
opportunities for employment, training, career development and promotion as are available to all employees, within the limitations of
their aptitude and abilities. In the event of members of staff becoming disabled, every effort is made to ensure that their employment
with the Group continues and appropriate arrangements are made.
Employment within the Group is offered on the basis of the person’s ability to work and not on the basis of race, individual
characteristics, creed or political opinion.
8. Special Business Of The Annual General Meeting
(a) Renewal of Directors’ power to allot shares
The Special Business of the Annual General Meeting includes an ordinary Resolution (Resolution 10) which gives the Directors the 
power to allot shares.
This authority, which will expire at the end of the Annual General Meeting to be held in 2008, is to allot up to £3,003,255  (60,065,010
shares), being approximately 33.3% of the Company’s issued ordinary share capital as at 12 March 2007.
A similar Resolution was passed at the last Annual General Meeting and the Directors intend to seek renewal of this authority at
subsequent Annual General Meetings.
(b) Disapplication of statutory pre-emption rights 
The Special Business of the Annual General Meeting includes a Special Resolution (Resolution 11) to disapply the pre-emption 
rights of shareholders to allow the issue of a limited number of shares.
This is a Resolution that the Directors propose each year at the Annual General Meeting.The Companies Act 1985 requires that, subject
to certain exceptions, before Directors of a Company can issue any new shares for cash, the new shares must be offered first to the
existing shareholders proportionately to their existing shareholding. This provision can create considerable administrative difficulty,
particularly if a rights issue is made, because of the entitlements to fractions of shares which may arise and because of the restrictions
imposed on the Company’s ability to offer new shares to certain overseas shareholders by the laws of relevant overseas jurisdiction.
As in previous years, the authority would enable the Directors to avoid any difficulty which might arise in those circumstances. It is also
customary each year for public companies to take a limited authority to issue new shares for cash without first offering those shares to
existing shareholders. Therefore, through this resolution, the Directors are seeking an authority to issue small quantities of shares for
cash.The authority is limited to the allotment of up to a maximum nominal value of £450,487 (9,009,751 shares) in ordinary shares, being
5% of the Company’s issued ordinary share capital as at 12 March 2007.This will continue to provide the Directors with flexibility to act
in the best interests of the shareholders when opportunities arise.
The authority the Directors are seeking will expire at the end of the Annual General Meeting to be held in 2008. As usual, they intend to
seek renewal of this authority at subsequent Annual General Meetings.
Directors’ Report
for the year ended 31 December 2006 (continued) 32
Lookers plc Report & Financial Statements 2006
(c) Purchase of own shares 
The Special Business of the Annual General Meeting includes a Special Resolution (Resolution 12) to authorise the Company to 
make market purchases of its own shares.
The resolution specifies the maximum number of shares the Company can buy up to a nominal value of £900,975 (18,019,503 shares)
representing 10% of the Company’s issued ordinary share capital as at 12 March 2007, and the maximum and minimum prices at which
the Company can buy them, reflecting the requirements of the Companies Act 1985 and the Listing Rules of the UK Listing Authority.
As at 12 March 2007, the Company does not have any outstanding options to purchase its own shares pursuant to the authority to buy
its own shares granted at the 2006 Annual General Meeting.
The Company would only buy shares on the London Stock Exchange. The Board can only use the power to buy shares after considering
the effect on earnings per share and the benefits for longer term shareholders.
At the 2006 Annual General Meeting, the Company was authorised to make market purchases of its own shares. This resolution is to
renew that authority for a further year. It does not mean that the Company will buy its own shares at any particular price or indeed at
all. The Directors do not intend at present to use this power but wish to retain the flexibility to do so in the future.
The authority would expire at the end of the Annual General Meeting to be held in 2008. As usual the Directors intend to seek renewal
of this authority at subsequent Annual General Meetings.
9. Scrip Dividends
At the 2004 Annual General Meeting, the Directors were authorised to offer the ordinary shareholders of the Company the right to elect
to receive new ordinary shares, credited as fully paid up, instead of cash in respect of the whole or part of any dividend declared by the
Directors or approved by the shareholders.
In accordance with the mandate granted to the Directors of the Company at the last Annual General Meeting, the Board has decided to
offer new ordinary shares in lieu of the final dividend to those shareholders holding shares on 13 April 2007 (the record date).
A circular setting out the terms of the offer will be sent to shareholders in due course.
10. Donations
Charitable donations amounted to £9,000 (2005: £38,000). No political donations were made (2005: £nil).
11. Auditors
In the case of each of the persons who are Directors of the Company at the date when this report was approved:
• So far as each is aware, there is no relevant audit information (as defined by the Companies Act 1985) of which the Company’s auditors
are unaware; and
• Each of the Directors has taken all the steps that he ought to have taken as a Director to make himself aware of any relevant audit
information and to establish that the Company’s auditors are aware of that information. This confirmation is given and should be
interpreted in accordance with the provisions of S234ZA of the Companies Act 1985.
PricewaterhouseCoopers LLP resigned as auditors in August 2006. The Directors appointed Deloitte & Touche LLP to fill the casual
vacancy thus arising. A resolution to re-appoint Deloitte & Touche LLP as auditors will be proposed at the Annual General Meeting.
12. Supplier Payments Policy
The Group does not formally follow the better payment practice code issued by the Department of Trade and Industry because, in line
with industry practice, manufacturers insist upon direct access to our bank accounts and they take funds to pay for both vehicles and
parts when they fall due. Other suppliers are generally paid in accordance with their terms of trading.
At 31 December 2006, the trade creditors of the Group and the Company represented 52 and 30 days’ (2005: 43 and 30 days’ ) purchases
respectively.
13. Derivatives and Financial Instruments
The Group’s treasury activities are operated within policies and procedures approved by the Board, which include defined controls on
the use of financial instruments managing the Group’s risk. The major financial risks faced by the Group relate to interest rates and
funding.The policies agreed for managing these financial risks have remained the same since the beginning of the period under review,
and are summarised below.
The Group finances its operations by a mixture of retained profits, bank borrowings and commercial paper. To reduce the Group’s
exposure to movements in interest rates, the Group seeks to ensure that it has an appropriate balance between fixed and floating rate
borrowings. The Group uses interest rate swaps and collars in order to manage its exposure to interest rate risk; all such arrangements
Directors’ Report
for the year ended 31 December 2006 (continued) 33
Lookers plc Report & Financial Statements 2006
are approved by the Board in line with its treasury policies.The Group has not sought to apply hedge accounting under IAS 39 ‘Financial
Instruments’ in respect of these or any other of its financial assets and liabilities.
The Group seeks to ensure continuity of funding by taking out certain borrowings which are repayable in instalments over periods of
at least five years. Short-term flexibility is achieved by overdraft facilities.
The Group has no significant exposure to foreign currency, nor does it undertake any trading in financial instruments.
Refer to notes 14, 17, 18 and 30 of the notes to the Financial Statements for further information in this area.
14. Substantial Shareholdings
On 12 March 2007 the following shareholders were, so far as the Directors are aware, interested in 3% or more of the issued ordinary
share capital of the Company:
D.C.A. Bramall and Family 43,835,710 shares (24.33%)
Schroder Investment Management Limited 14,785,535 shares (8.21%)
Barclays PLC 13,186,370 shares (7.32%)
Kenneth Henderson Cheevers 8,450,000 shares (4.69%)
UBS Global Asset Management 6,737,042 shares (3.74%)
The Directors have not been notified of any other holders of 3% or more of the issued ordinary share capital.
By Order of the Board
S. R. MacDonald
12 March 2007
Directors’ Report
for the year ended 31 December 2006 (continued) 34
Lookers plc Report & Financial Statements 2006
Statements on Corporate Governance
for the year ended 31 December 2006
Compliance Statement
The Board of Directors is collectively accountable to the Company’s shareholders for good corporate governance and is committed to
achieve compliance with the principles of corporate governance set out in the 2003 Combined Code (the “Code”) of the listing rules of the
Financial Services Authority.
Throughout 2006 the Company has been in compliance with the Code provisions set out in Section 1 of the 2003 FRC Combined Code on
Corporate Governance except as follows:
B1.6 The Code requires that notice or contract periods for service contracts be one year or less. The original notice period for H. K.
Surgenor and D. J. Blakeman was two years.The Remuneration Committee has carried out a review and new contracts were signed in May
2006, reducing the notice period to one year.
C3.1 The Code requires that the Audit Committee comprises at least three Directors, all Non-Executive and independent and at least
one with relevant financial experience. Throughout the year the Audit Committee comprised two Non-Executive Directors both of whom
are independent. This is deemed appropriate given the size and complexity of the business. J.E. Brown is deemed to have sufficient recent
experience of reporting and accounting matters.
The Board - The Board of Directors at the start of the financial year under review comprised six Executive Directors and four Non-Executive
Directors. N. Clyne and F. S Maguire resigned from the Board on 28 April 2006 and 4 September 2006 respectively. D. C. A. Bramall and P . M.
White were appointed to the Board on 30 June 2006 and 4 September 2006 respectively.Their names and brief biographies of the current
Board appear on pages 24 to 26. P . M. White, J. E. Brown and D. C. Mace are considered to be independent Non-Executive Directors.
The Code requires a balance of Executive and Non-Executive Directors such that no individual or small group of individuals can dominate
the Board’s decision-making process. The number and quality of the Non-Executive Directors on the Board, with their combination of
diverse backgrounds and expertise, ensures this principle is met.
The Board has a documented schedule of matters reserved for its decision which includes the following:
- agreeing objectives, policies and strategies, and monitoring the performance of the executive management
- approval of the Group’s strategic plans and business plans
- approval of annual and interim results
- deciding on major changes in organisation and the shape of the Group, including entry into new fields of operation and departure
from those which are no longer considered to be appropriate
- approving major individual capital projects
The Chairman takes responsibility for ensuring the Directors receive accurate, timely and clear information. Monthly financial information
is provided to the Directors. Regular and ad hoc reports and presentations are circulated, with all Board and committee papers being issued
in advance of meetings by the Company Secretary. In addition to formal Board meetings, the Chairman maintains regular contact with the
Chief Executive and the other Directors to discuss specific issues. In furtherance of their duties, the Directors have full access to the services
of the Company Secretary and may take independent professional advice at the Company’s expense. The Board believes that given the
experience and skills of its particular Directors, the identification of general training needs is best left to the individual’s discretion. If any
particular development need is identified through the Board’s formal appraisal process or by an individual Director, the Company makes
the necessary resources available.
Director roles - P. M. White is the Non-Executive Chairman and H. K. Surgenor is the Chief Executive. The Chairman leads the Board and
represents the Board to the Chief Executive.The Chief Executive manages the Group and implements the strategy and policies adopted by
the Board. The division of responsibilities between the role of Chairman and Chief Executive has been set out in writing.
D. C. Mace is the Senior Independent Director and his prime responsibility is to provide a communication channel between the Chairman
and the Non-Executive Directors and to ensure that the views of each Non-Executive Director are given due consideration.
The Company Secretary would minute any unresolved concerns expressed by any Director.
The Company maintains appropriate directors’ and officers’ insurance in respect of legal action against its Directors. 35
Lookers plc Report & Financial Statements 2006
Attendance at meetings - The following table shows the attendance of Directors at regular board meetings and at meetings of the Audit,
Remuneration and Nomination Committees.
Scheduled meetings held in 2006
Board Audit Remuneration Nomination
Number held 12 3 5 3
Number attended
P . M. White (appointed 4 September 2006) 2 1 * 2 -
H. K. Surgenor 12 3 * 4 * 3 *
D. V. Dyson 12 3 * 2 * 1 *
D. J. Blakeman 12 3 * 5 * 2 *
B. Schumacker 12 - - -
A. C. Bruce 10 - - -
T. M. Wainwright 11 - - -
F. S. Maguire (retired 4 September 2006) 10 1 * 3 2
D. C. Mace 11 2 5 3
J. E. Brown 12 3 5 3
D. C. A. Bramall (appointed 30 June 2006) 4 1 * - -
N. Clyne (resigned 28 April 2006) 6 - - -
*in attendance by invitation of the committee for all or part of the meeting.
Appointment and Selection of Directors
Appointments
The Code requires there to be a formal, rigorous and transparent procedure for the appointment of appropriate new Directors, which
should be made on merit and against objective criteria. The Board has an established Nominations Committee for this purpose and its
terms of reference are available from the Company Secretary.
The Board approves the appointment and removal of Directors.
The Board is aware of the other commitments of its Non-Executive Directors and is satisfied that these do not conflict with their duties as
Non-Executive Directors of the Company.
None of the Executive Directors holds any Executive or Non-Executive positions on other boards.
Directors receive induction on their appointment to the Board as appropriate, covering matters such as the operation and activities of the
Group (including key financial and business risks to the Group’s activities), the role of the Board and the matters reserved for its decision,
the tasks and membership of the principal Board Committees, the powers delegated to those Committees, the Board’s governance policies
and practices, and the Group’s latest financial information. The training and induction process for Directors takes into account the
development of the Group and applicable governance standards. Major shareholders are offered the opportunity to meet new Directors
as any appointments are made.
The requirement to propose Directors for re-appointment at regular intervals is met by applying the Company’s Articles of Association.
These require that at each Annual General Meeting not less than one-third of the Directors who are subject to retirement by rotation must
retire, and that any Director, who was not appointed at either of the two previous Annual General Meetings and who has served as a
Director for more than two years since appointment or last re-appointment, has to retire.
In accordance with the Code, each new Non-Executive Director is appointed for a specified term, being an initial period from appointment
to the next Annual General Meeting where he will be subject to re-appointment at that meeting, for a further period ending not later than
the Annual General Meeting held three years thereafter. There is a general assumption on the part of the Board that independent  
Non-Executive Directors will not normally be invited to stand for re-appointment after serving six years.
Nomination Committee
The Nomination Committee comprises P . M. White, J. E. Brown and D. C. Mace, and from 4 September 2006 was chaired by P . M. White. The
Committee reviews the size, structure and composition of the Board and Committees and makes recommendations to the Board with
regard to any changes that are considered necessary. The Committee also reviews the time required of Non-Executive Directors.
The Nominations Committee is responsible for assisting the Board in the formal selection and appointment of Directors and considers
succession planning for the Board. In considering an appointment, the Nominations Committee evaluates the balance of skills, knowledge
and experience of the Board and prepares a description of the role and capabilities required for a particular appointment. In identifying
suitable candidates, open advertising or external search agencies will be used by the Committee, where appropriate. It also considers
potential candidates and recommends appointments of new Directors to the Board. The appointments are based on merit and against
objective criteria including the time available and commitment which will be required of the potential Director.
Statements on Corporate Governance
for the year ended 31 December 2006 (continued)  36
Lookers plc Report & Financial Statements 2006
In choosing new Non-Executive Directors, the Committee starts by obtaining the views of its professional advisors.The Committee has the
power to employ the services of such advisors as it deems necessary in order to carry out its responsibilities and may retain appropriate
executive search consultants having prepared a job specification for the role.
Performance Evaluation Appraisal 
Annually the Non-Executive Directors are appraised individually by the Chairman, and the Non-Executive Directors, led by the senior 
Non-Executive Director, together appraise the Chairman.
In 2006, all members of the Board completed a questionnaire regarding Board processes and performance. The Chairman reported the
collective findings to the Board and agreed actions required.The Audit, Remuneration and Nomination Committee Chairmen appraise their
performance in a similar way on an annual basis.
Accountability and Audit
Going Concern
After reviewing the Group’s budget for the current year and its medium-term plans, the Directors are confident that the Company and the
Group have adequate financial resources to continue in operational existence for the foreseeable future.They have therefore continued to
adopt the going concern basis in preparing the accounts.
Directors’ Statement of Responsibilities
The Directors are required by the Companies Act 1985 to prepare accounts for each financial year which give a true and fair view of the
state of affairs of the Company and the Group as at the end of the financial year and of the Income Statements and cash flows of the
Company and Group for the financial year.
In preparing the accounts, the Directors are required to select appropriate accounting policies and apply them consistently, to make
reasonable and prudent judgements and estimates, and to state that all accounting standards which they consider to be applicable have
been followed, save as disclosed in the notes to the accounts.The Directors are also required to prepare the accounts on the going concern
basis unless it is inappropriate to do so.
The Directors have responsibility for ensuring that the Company keeps accounting records which disclose with reasonable accuracy the
financial position of the Company at any time and which enable them to ensure that the accounts comply with the Companies Act 1985.
The Directors also have responsibility for ensuring the operation of systems of internal control and for taking such steps as are reasonably
open to them to safeguard the assets of the Group and to prevent and detect fraud and other irregularities.
The maintenance and integrity of the Lookers plc website is the responsibility of the Directors; the work carried out by the auditors does
not involve consideration of these matters and, accordingly, the auditors accept no responsibility for any changes that may have occurred
to the financial statements since they were initially presented on the website.
Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in
other jurisdictions.
Audit Committee
The Audit Committee comprises J. E. Brown and D. C. Mace, and throughout 2006 was chaired by J. E. Brown.The Committee met three times
during 2006, with the Chief Executive, Finance Director and the internal and external auditors attending as required.
The Audit Committee has reviewed the effectiveness of the system of internal control during the year ended 31 December 2006. This has
included consideration of Group-wide risk assessment and of internal audit and internal control exercises undertaken throughout the
Group.The Audit Committee has also considered reports from internal and external auditors.The Audit Committee has reported the results
of its work to the Board.The Board has considered these reports when undertaking its review of the effectiveness of the Group’s system of
internal control.
The Audit Committee is responsible for reviewing a wide range of financial matters including the interim and year end financial statements,
matters relating to the external audit, corporate governance matters and monitoring the Group’s  internal and operational controls. The Audit
Committee’s terms of reference are available from the Company Secretary.
The Audit Committee has considered the arrangements for the reporting by employees of concerns about possible improprieties in
financial reporting or other matters, as set out in the Employee Handbook, and has concluded that there is a reasonably clear and
adequately defined system for reporting of concerns. This policy and system of reporting will be reviewed annually.
The auditors are permitted to provide non-audit services that are not, or are not perceived to be, in conflict with auditor independence. Part
of the Committee’s responsibility in relation to external auditors is to review the nature of their independence and the extent of the non-audit
services they provide. The report from Deloitte & Touche LLP confirming their independence and objectivity was reviewed by the Chairman
of the Audit Committee and the Finance Director.
The Committee conducted a formal evaluation of the effectiveness of the external audit process and held independent meetings with the
external auditors, and has reported on its conclusions to the Board.The Committee has recommended to the Board the re-appointment of the
external auditors. Non-audit services are placed with whichever firm is believed to deliver the best value for money, having regard to our
external auditors’ independence if Deloitte & Touche LLP were to be appointed.The Group has for many years had separately appointed tax
advisors.
Statements on Corporate Governance
for the year ended 31 December 2006 (continued) 37
Lookers plc Report & Financial Statements 2006
Statements on Corporate Governance
for the year ended 31 December 2006 (continued)
Internal Control
The Code requires the Company to maintain a sound system of internal control to safeguard shareholders’ investment and the Company’s
assets.The Board must review the effectiveness of the system at least annually, covering all material controls, including financial, operational
and compliance controls and risk management systems, and report to shareholders that it has done so. The Turnbull Report, adopted by
the UK Listing Authority, provides guidance for compliance with that part of the Code.
The Board confirms that there is an ongoing process for identifying, evaluating and managing the significant risks faced by the Company.
Steps are being taken to imbed internal control and risk management further into the operations of the businesses and to deal with areas
of improvement which come to management’s and the Board’s attention.The process has been in place throughout the year and up to the
date of approval of the Annual Report and Accounts. It is regularly reviewed by the Board and accords with the guidelines set out in the
Turnbull Report.
The Directors acknowledge that they are responsible for the Group’s system of internal control, for setting policy on internal control and
for reviewing the effectiveness of internal control. The role of management is to implement Board policies on risk and control. The system
of internal control is designed to manage rather than eliminate the risk of failure to achieve business objectives, and can only provide
reasonable, and not absolute, assurance against material misstatement or loss.
The Group has an internal audit function that reports to the Audit Committee. Detailed control procedures exist throughout the operations
of the Group and compliance is monitored by management, internal auditors, and, to the extent that they consider necessary to support
their audit report, external auditors.
Relations with Shareholders
The Company places considerable importance on communications with shareholders and responds to them on a wide range of issues. It
has an ongoing programme of dialogue and meetings with major institutional shareholders, where a wide range of relevant issues
including strategy, performance, management and governance are discussed. The Chairman makes himself available to meet any major
shareholder, as required.
All Company announcements are posted on our website - www.lookers.co.uk as soon as they are released. Our website contains a
dedicated investor relations section with an archive of past announcements and presentations, historical financial performance, share price
data and a calendar of events.
The principal communication with private investors is through the Annual Review, the Interim Report and the Annual General Meeting. A
presentation is made at the Annual General Meeting to facilitate greater awareness of the Group’s activities. Shareholders are given the
opportunity to ask questions of the Board and of the Chairman of each Board Committee and to meet the Directors informally after the
meeting. Separate resolutions are proposed for each item of business and the ‘for’ , ‘against’ and ‘vote withheld’ proxy votes cast in respect
of each resolution proposed at the Meeting are counted and announced after the shareholders present have voted on each resolution.
Notice of the Annual General Meeting is posted to shareholders at least twenty working days before the date of the Annual General
Meeting. 38
Lookers plc Report & Financial Statements 2006
Corporate Social Responsibility Review
for the year ended 31 December 2006
Corporate Social Responsibility Management
The Main Board of Lookers is responsible for setting the Group’s strategy, values and standards regarding social, environmental and ethical
issues. It delegates the responsibility for implementing strategy and instilling values and standards throughout the Group’s businesses.The
operating companies each include social, environmental and ethical issues in their risk assessment processes.This enables the Main Board
to ensure that any potential problems are identified and contingency strategies are in place.
Lookers and the Environment
Lookers’ activities do have an impact on the environment.The Group is keen to fulfil its legal obligations on this issue and has a Group-wide
environmental policy in place.The need to deal with contamination, waste oil and asbestos issues is at the forefront of the Group’s concerns.
On a wider level, Lookers supports a number of industry initiatives and the Group also engages in all environmental issues raised by
stakeholders, consumers, suppliers, shareholders and employees.
The Group aims to encourage the reduction of energy and water consumption and actively investigates employees’ suggestions to help
reduce the amount of waste. An electrical testing monitoring regime is in force throughout the Group. Use of the latest building materials
is made in the construction of new sites and the refurbishment of existing locations. For instance, modern heating controls include both
timers and thermostats.
Lookers aims to improve its energy, water and fuel efficiency over the coming year throughout the Group’s expanding operations. As part
of this policy, the Group is working in partnership with a major energy management systems company to help create a better environment
by reducing the amount of harmful emissions released into the atmosphere for everyone’s future benefit. Savings of up to 30% in annual
heating spend can be achieved as well as producing a comfortable working environment for staff.The system is recognised for ISO 14001.
Lookers and Ethics
Lookers believes that integrity in its relationships with customers, suppliers, staff, shareholders, regulatory agencies and the community is
important and gains the respect of all its stakeholders.
Lookers makes every effort to ensure its people are aware of these expectations and that they contribute to the high standards required
of them. This statement, together with Lookers corporate values, is at the heart of how Lookers conducts its business, externally in its
relationships with stakeholders and internally through its performance management and promotion processes.
Lookers as an Employer
People are crucial to Lookers’ success. This approach is reflected in Lookers’ policies on recruitment and retention, staff share scheme, staff
communication, and health and safety.
Recruitment and Retention
Lookers ensures that it has fair employment terms for its people. Employment handbooks set out formal policies for key issues such as
equal opportunities, disciplinary and grievance procedures, sexual, religious and racial harassment.
Lookers’ Human Resources Director is responsible for raising employment standards and implementing best practice employment policies
throughout the organisation. Performance reviews are conducted at least once a year and include an assessment of each individual’s
training needs.
Lookers has a comprehensive training programme for its people which has received industry recognition in the form of national awards
for the automotive industry.
Staff Communication
Lookers believes that its people have a right to be kept informed. Regular discussions take place to keep people updated and to seek out
their ideas and opinions.
Face-to-face dialogue between managers and staff takes place regularly; information is communicated through Lookers’ intranet, which is
used by over 50% of employees every week. Lookers also uses newsletters and updates to keep its staff informed.
Health and Safety
Lookers aims to do all that is reasonably practicable to ensure the health, safety and welfare of its people, and others who may be affected
by its activities. The Main Board maintains ultimate responsibility for health and safety issues at Lookers with the manager responsible for
the day-to-day responsibility, supported by all levels of management. This policy is defined in the Group’s Health and Safety policy
statement and all staff are issued with, or have access to, a detailed health and safety guide.
The statistics for the Group, under UK Health and Safety regulations for the year ended 31 December 2006, are set out below:
2006
Number of fatalities 1
Injuries resulting in absence over three days 17
Major injuries reported under RIDDOR* 8
Dangerous occurrences reported under RIDDOR* -
Number of enforcement notices issued by HSE -
Number of prohibition notices issued by HSE -
*Reporting of Injuries, Diseases and Dangerous Occurrences Regulations 1995
Lookers and the Community
Lookers is committed to playing an active role in the communities it serves. All Lookers’ businesses operate their own community
programmes and fundraising charity events. In addition, some charities are supported at a Group level such as the motor trades BEN appeal. 39
Lookers plc Report & Financial Statements 2006
Introduction
This report has been prepared in accordance with the Directors’ Remuneration Report Regulations 2002 (the “Regulations”).The report also
meets the relevant requirements of the Listing Rules of the Financial Services Authority and describes how the Board has applied the
principles of Good Governance relating to Directors’ Remuneration. As required by the Regulations, a resolution to approve the report will
be proposed at the Annual General Meeting of the Company at which the financial statements will be laid before members.The Regulations
require the auditors to report to the Company’s members on the “auditable part” of the Directors’ Remuneration Report and to state
whether in their opinion that part of the report has been properly prepared in accordance with  the Companies Act 1985 (as amended by
the Regulations). The report has therefore been divided into separate sections for audited and unaudited information.
Unaudited Information
Remuneration Committee
The Remuneration Committee is responsible for reviewing and recommending the framework and policy for remuneration of the Executive
Directors and of Senior Management. The Remuneration Committee’s terms of reference are available from the Company Secretary. The
members of the Remuneration Committee during the financial year were D.C. Mace (Chairman), J. E. Brown, F.S. Maguire, who resigned on 4
September 2006 and P. M. White, who was appointed to the Board on 4 September 2006 and served as a member of the Remuneration
Committee. D.C. Mace and J.E. Brown are independent Non-Executive Directors of the Board.
Remuneration Policy
The policy of the Committee is to ensure that the Directors are fairly rewarded for their individual contributions to the Group’s overall
performance and to provide a competitive remuneration package to Executive Directors, including long-term incentive plans and granting
of share options to attract, retain and motivate individuals of the calibre required and ensure that the Group is managed successfully in the
interests of shareholders.
When selecting appropriate comparisons, the Committee has regard to the Group’s turnover, market worth and business sector.
No Director plays a part in any decision about his own remuneration. Full details of Directors’ remuneration, fees and share options are set
out on pages 41 and 42. Directors retiring by rotation are shown in the Directors’ Report on page 30. None of the Executive Directors
currently has any long-term incentives other than the Executive Incentive Performance Plan (“EIPP”) which was approved at the Annual
General Meeting in May 2003, and the Matching Share Plan (“MSP”) which was approved at the Annual General Meeting in May 2005.
The Remuneration Committee, in determining remuneration policy, has given full consideration to Section B of the best practice provisions
annexed to the Listing Rules of the Financial Services Authority.
The Company’s policy is that a substantial proportion of the remuneration of the Executive Directors should be performance related. The
annual bonus scheme enables the Executive Directors to earn annual incentive payments on a sliding scale up to 100% of their basic salary.
The main elements of their remuneration package are as follows:
Basic Annual Salary and Benefits in Kind
Each Executive Director’s basic salary is reviewed annually by the Committee. In deciding upon appropriate levels of remuneration, the
Committee has regard to rates of pay for similar positions in comparable companies.
Annual Bonus Payments
All Executive Directors participate in an annual bonus scheme payable upon the Group exceeding predetermined profit level targets and
at the discretion of the Remuneration Committee. Bonus payments are not pensionable.
Pension Arrangements
The Group operates a defined benefit scheme for its full-time employees. D. V. Dyson, B. Schumacker and A. C. Bruce are members of this
scheme which provides a pension of up to two-thirds of final pensionable salary on retirement at age 60 years.The defined benefit scheme
also provides lump sum death-in-service benefit and pension benefits based on final pensionable salary. H. K. Surgenor, D. J. Blakeman and
T. M. Wainwright participate in money purchase arrangements.
Share Option Incentives
The Company operates a share option scheme under which Executive Directors and senior executives are granted options from time to time
by the Board.The last grants were made in September 2001. Once awarded, exercise of share options is conditional on the achievement by
the company of performance targets set out at the time of grant.
The Executive Incentive Performance Plan
Selected Executive Directors as detailed on page 42 participate in the EIPP , which was approved by the shareholders at the 2003 Annual
General Meeting.
Awards under the EIPP are in the form of performance bonuses payable in cash and are based on adjusted earnings per share growth
targets over a predetermined performance period. For the 2006-2008 EIPP , the calculation is based on IFRS adjusted earnings per share
growth.
Directors’ Remuneration Report
for the year ended 31 December 2006 40
Lookers plc Report & Financial Statements 2006
In respect of performance bonuses for 2006, the performance period ends on 31 December 2008, which is three years after the
commencement of the performance period. Performance is measured on earnings per share growth over the three year period and
bonuses will be payable where the growth in earnings per share of the Company has exceeded the growth in the Retail Price Index (“RPI”)
by 10% or more. Participating Executives will receive a percentage of their gross salary dependent upon the level of growth over and above
the RPI. At 10% over the RPI, participating Executives may earn 20% of gross salary. A stepped scale is then applied up to a maximum of
200% of gross salary if the increase in earnings per share over the period is 35% over and above the RPI.The relevant bonus percentage will
be applied to the Executives’ gross annual salary at the end of the performance period to arrive at any bonus payable.
Any executive who receives a performance bonus under this plan will be required to invest 20% of his net bonus in the MSP . The Executive
will also be given the opportunity to invest up to a further 30% of their net bonus in the MSP .
Directors’ Contracts
The details of the Directors’ individual service contracts are set out in the table below. In the event of termination of an Executive Director’s
service contract, depending upon the circumstances, the Company may be liable to pay compensation to the Executive Director equivalent
to salary that would have been received during the contract period, together with any bonus earned on a pro rata basis to the date of
termination. The Company’s policy in the event of the termination of an Executive Director’s service contract is not to make any payment
to an Executive Director in excess of their contractual entitlement and so aim to ensure that any liability is mitigated to the fullest extent
possible.
Contractual Termination
Date of Contract Notice Period Payments 
H. K. Surgenor 11 May 2006 1 year Basic salary and benefits for unexpired term
D. V. Dyson 11 May 2006 1 year Basic salary and benefits for unexpired term
D. J. Blakeman 11 May 2006 1 year Basic salary and benefits for unexpired term
B. Schumacker 11 May 2006 1 year Basic salary and benefits for unexpired term
A. C. Bruce 11 May 2006 1 year Basic salary and benefits for unexpired term
T. M. Wainwright 12 Aug 2004 1 year Basic salary and benefits for unexpired term
All contracts are rolling contracts.
In 2007, the Remuneration Committee appointed Ernst Young LLP to review the packages of the Executive Directors and their
recommendations will be considered by the Remuneration Committee for implementation at the earliest opportunity.
Non-Executive Directors
The Remuneration of the Non-Executive Directors is determined by the Board within the limits set out in the Articles of Association.
Non-Executive Directors cannot participate in the Company’s share option schemes and are not eligible for pension arrangements.
Performance Graph
The following graph shows the Group’s performance, measured by total shareholder return. The Group has been benchmarked against the
FTSE Small-Cap Index which is considered to be an appropriate comparison to other public companies of a similar size.
Directors’ Remuneration Report
for the year ended 31 December 2006 (continued) 41
Lookers plc Report & Financial Statements 2006
Directors’ Remuneration Report
for the year ended 31 December 2006 (continued)
Audited Information
Directors’ Emoluments
Pension Pension
Annual Benefits- 2006 2005 Contributions Contributions
Fees Salary Bonus in-kind Total Total 2006 2005
£000 £000 £000 £000 £000 £000 £000 £000
P . M. White 26 - - - 26 - - -
H. K. Surgenor - 363 350 17 730 506 9 37
D. V. Dyson - 233 225 15 473 329 19 -
D. J. Blakeman - 140 80 15 235 222 6 25
B. Schumacker - 160 155 15 330 233 8 -
A. C. Bruce - 160 155 15 330 237 8 -
T. M. Wainwright - 105 50 15 170 27 13 3
D. C. Mace 28 - - - 28 27 - -
J. E. Brown 28 - - - 28 17 - -
D. C. A. Bramall 14 - - - 14 - - -
F. S. Maguire 120 - - 20 140 145 - -
Total 216 1,161 1,015 112 2,504 1,743 63 65
With effect from 1 April 2006, the Company has ceased to make contributions to the pension arrangements of H.K. Surgenor and
D. J. Blakeman and those Directors’ basic salaries have been increased by an equivalent amount in lieu of such contributions.This results from
the change in pension arrangements following the rule changes referred to as ‘pension simplification’ from 6 April 2006 (‘A’ day).
The cost to the Company of these amended arrangements is unchanged. The Company made payments in lieu of pension contributions to
H.K. Surgenor of £36,000 (2005: £nil) and to D.J. Blakeman of £19,000 (2005: £nil).
Benefits in kind include items such as a company car, fuel and life assurance premiums. Details of Directors’ shareholdings are shown in the
Directors’ Report on page 30.The relative importance of performance and non-performance elements of remuneration are set out within the
Remuneration Policy.
Directors’ Pension Entitlement
Set out below are details of the pension benefits to which each of the Executive Directors is entitled.
Additional accrued
benefits earned Accrued Transfer value Transfer value Increase in transfer 
in the year entitlement 31 December 2006 31 December 2005 value
£000 £000 £000 £000 £000
D.V.Dyson 6 35 398 329 69
B. Schumacker 3 43 747 690 57
A. C. Bruce 6 20 172 123 49
Pension increases are in line with Limited Price Indexation. Death-in-service pays at four times salary and death-in-retirement pays benefits
at 50%. The accrued pension entitlement is the amount that the Director would receive if he retired at the end of the year. The increase in
the transfer value is the difference between the accrued benefit at the year end and that at the previous year end. All transfer values have
been calculated on the basis of actuarial advice in accordance with Actuarial Guidance Note GN11. The transfer values disclosed above do
not represent a sum paid or payable to the individual Director. Instead they represent a potential liability of the pension scheme.
Additional accrued Transfer value of 
benefits earned in the increase in 
year (excluding inflation) accrued benefits
£000 £000
D. V. Dyson 555
B. Schumacker 229
A. C. Bruce 541
H.K. Surgenor and D.J. Blakeman have individual money purchase pension plans. From 6 April 2006, payments were made in lieu of pension
contributions as set out above. 42
Lookers plc Report & Financial Statements 2006
Directors’ Share Options
Aggregate emoluments disclosed do not include any amounts for the value of options to acquire ordinary shares in the Company granted
to, or held by, the Directors. Details of the Directors’ share options are as follows:
Earliest Exercise Number at Number at
Date of Exercise Expiry price 1 January Granted Exercised 31 December
Scheme Grant Date Date (pence) 2006 in Year in Year 2006
F. S. Maguire Executive 29.9.2001 26.9.2004 25.9.2008 124.0* 26,125* - 26,125* -
A.C. Bruce Company 26.9.2001 26.9.2004 25.9.2011 124.0* 12,466* - 12,466* -
H.K. Surgenor MSP 24.3.2006 31.12.2008 23.3.2016             5.0    - 291,790 - 291,790
D.V. Dyson MSP 24.3.2006 31.12.2008 23.3.2016             5.0   - 187,570 - 187,570
A.C. Bruce MSP 24.3.2006 31.12.2008 23.3.2016             5.0 - 129,220 - 129,220
B. Schumacker MSP 24.3.2006 31.12.2008 23.3.2016             5.0   - 129,220 - 129,220
D.J. Blakeman MSP 24.3.2006 31.12.2008 23.3.2016             5.0   - 116,710 - 116,710
*Stated at pre stock split nominal value 25p. The only options outstanding at 31 December 2006 are in respect of the MSP .
The mid-market price of the ordinary shares at 31 December 2006 was 174.5p and the range during the year was 91.0p to 178.0p.
The post stock split market price when A. C. Bruce exercised his share options was 147p. None of the terms for the share option schemes
has varied during the year.
Gains Made By Directors On Share Options
The table below shows gains made by individual Directors before tax from the exercise of share options during 2006 and 2005.
The gains are calculated as at the exercise date, although the shares acquired in both 2006 and 2005 have been retained.
2006 2005
£000 £000
A. C. Bruce 76 -
D.V. Dyson -19
76 19
Directors’ Interests In The Executive Incentive Performance Plan
Awards to Executive Directors under the EIPP are as follows:
Amount
Cycle Award At 1 January 2006 Awarded At 31 December 2006 Vesting
end date £000 £000 £000 date
H.K.Surgenor 2008 11.5.2006 - 800 800 31.12.2008
D.V. Dyson 2008 11.5.2006 - 510 510 31.12.2008
D.J.Blakeman 2008 11.5.2006 - 280 280 31.12.2008
B.Schumacker 2008 11.5.2006 - 350 350 31.12.2008
A.C.Bruce 2008 11.5.2006 - 350 350 31.12.2008
Amounts owing at 31 December 2005 were paid in March 2006 following the achievement of growth in adjusted EPS of 118% over RPI over
the three year performance period.
Details of the performance conditions attaching to the EIPP are set out on page 39. Bonuses under the EIPP are payable in cash, based on
the Executive’s salary at the end of each performance period.The amount awarded above represents the maximum possible award for each
Executive, based on his salary at 31 December 2006.The maximum award is only payable if earnings per share growth is greater than RPI +
35% over the three year period to 31 December 2008. If earnings per share growth over the performance period is less than RPI +  10%, no
performance bonus is payable.
All awards under the EIPP are in respect of qualifying service. There have been no variations in the terms and conditions of scheme interests
during the year.
The Company’s Register of Directors’ Interests contains full details of Directors’ shareholdings and options to subscribe.
By Order of the Board
S. R. MacDonald
12 March 2007
Directors’ Remuneration Report
for the year ended 31 December 2006 (continued) 43
Lookers plc Report & Financial Statements 2006
Independent Auditors’ report to the shareholders of Lookers plc 
We have audited the Group and individual Company financial statements (the “financial statements”) of Lookers plc for the year ended 31
December 2006 which comprise the Group and Company principal accounting policies, the consolidated and individual Company income
statements, the consolidated and individual Company statements of recognised income and expenses, the consolidated and individual
Company balance sheets, the consolidated and individual Company cash flow statements, the related notes 1 to 32. These financial
statements have been prepared under the accounting policies set out therein. We have also audited the information in the Directors’
Remuneration Report that is described as having been audited.
This report is made solely to the Company’s members, as a body, in accordance with section 235 of the Companies Act 1985. Our audit work
has been undertaken so that we might state to the Company’s members those matters we are required to state to them in an Auditors’
report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the
Company and the Company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
Respective responsibilities of Directors and Auditors
The Directors’ responsibilities for preparing the annual report, the Directors’ Remuneration Report and the financial statements in
accordance with applicable law and International Financial Reporting Standards (“IFRSs”) as adopted for use in the European Union are set
out in the statement of Directors’ responsibilities.
Our responsibility is to audit the financial statements and the part of the Directors’ Remuneration Report described as having been audited
in accordance with relevant United Kingdom legal and regulatory requirements and International Standards on Auditing (UK and Ireland).
We report to you our opinion as to whether the financial statements give a true and fair view, and whether the financial statements and the
part of the Directors’ Remuneration Report described as having been audited have been properly prepared in accordance with the
Companies Act 1985 and as regards the Group financial statements, Article 4 of the IAS Regulation. We also report to you whether in our
opinion the information given in the Directors’ Report and those items cross-referenced from the Directors’ Report are consistent with the
financial statements.
We review whether the corporate governance statement reflects the Company’s compliance with the nine provisions of the 2003 FRC
Combined Code specified for our review by the Listing Rules of the Financial Services Authority, and we report if it does not. We are not
required to consider whether the Board’s statements on internal control cover all risks and controls, or form an opinion on the effectiveness
of the Group’s corporate governance procedures or its risk and control procedures.
We read the Directors’ Report and the other information contained in the annual report  including the unaudited part of the Directors’
Remuneration Report and we consider the implications for our report if we become aware of any apparent misstatements or material
inconsistencies with the financial statements.
Basis of Audit Opinion
We conducted our audit in accordance with International Standards on Auditing (UK and Ireland) issued by the Auditing Practices Board.
An audit includes examination, on a test basis, of evidence relevant to the amounts and disclosures in the financial statements and the part
of the Directors’ Remuneration Report described as having been audited. It also includes an assessment of the significant estimates and
judgements made by the Directors in the preparation of the financial statements, and of whether the accounting policies are appropriate
to the Company’s circumstances, consistently applied and adequately disclosed.
We planned and performed our audit so as to obtain all the information and explanations which we considered necessary in order to
provide us with sufficient evidence to give reasonable assurance that the financial statements and the part of the Directors’ Remuneration
Report described as having been audited are free from material misstatement, whether caused by fraud or other irregularity or error. In
forming our opinion we also evaluated the overall adequacy of the presentation of information in the financial statements and the part of
the Directors’ Remuneration Report described as having been audited.
Opinion
In our opinion:
• the financial statements give a true and fair view, in accordance with IFRS as adopted for use in the European Union, of the state
of the Group’s and the individual Company’s affairs as at 31 December 2006 and of the Group’s and the individual Company’s 
profit for the year then ended; and
• the financial statements and the part of the Directors’ Remuneration Report described as having been audited have been 
properly prepared in accordance with the Companies Act 1985 and Article 4 of the IAS Regulation; and 
• the information given in the Directors’ Report is consistent with the financial statements.
Independent Auditors’ Report 44
Lookers plc Report & Financial Statements 2006
Separate Opinion in Relation to IFRS
As explained in the principal accounting policies to the financial statements, the Group and Company, in addition to complying with its
legal obligation to comply with IFRSs adopted for use in the European Union, has also complied with the IFRSs as issued by the
International Accounting Standards Board. Accordingly, in our opinion the financial statements give a true and fair view, in accordance with
IFRSs, of the state of the Group’s and Company’s  affairs as at 31 December 2006 and of the Group and the Company’s profit for the year
then ended.
Deloitte & Touche LLP
Chartered Accountants and Registered Auditors 
Manchester 
12 March 2007
Independent Auditors’ Report (continued) 45
Lookers plc Report & Financial Statements 2006
Principal Accounting Policies
The principal accounting policies adopted in the preparation of these financial statements are set out below. These policies have been
consistently applied to all years presented, unless stated otherwise.
1. General Information
Lookers plc is a company incorporated in the United Kingdom under the Companies Act 1985. The address of the registered office
is given at the front of these accounts. The nature of the Group’s operations and its principal activities are set out in note 1 on
page 53.
These financial statements are presented in pounds sterling because that is the currency of the primary economic environment in
which the Group operates.
At the date of authorisation of the financial statements the following standards and interpretations which have not been applied
in these financial statements were in issue but not yet effective;
IFRS 7 Financial Instruments: Disclosures; and the related amendment to IAS 1 on capital disclosures.
IFRIC 4 Determining whether an arrangement contains a lease.
IFRIC 8 Scope of IFRS 2.
IFRIC 9 Reassessment of embedded derivatives.
IFRIC 10 Interim reporting and impairments.
IFRIC 11 IFRS 2 - Group and Treasury Share Transactions.
The Directors anticipate that the adoption of these standards and interpretations in future periods will have no material impact on
the financial statements of the Group except for additional disclosures on capital and financial instruments when the relevant
standards come into effect for periods commencing on or after 1 January 2007.
2. Basis of Preparation and Critical Accounting Estimates
These financial statements have been prepared in accordance with IFRS, as adopted for use in the European Union and implemented
in the UK, and IFRIC interpretations and with those parts of the Companies Act 1985, applicable to companies reporting under IFRS.The
financial statements have been prepared under the historical cost convention. A summary of the more important Group accounting
policies is set out below.
The preparation of financial statements in conformity with generally accepted accounting principles requires the use of estimates and
assumptions that affect the reported amounts of assets and liabilities at the date of these financial statements and the reported
amounts of revenues and expenses during the reporting period. The critical accounting estimates applicable to the Group’s accounts
are shown below. These estimates and assumptions are continually evaluated and are based on historic experience and other factors,
including expectations of future events that are believed to be reasonable under the circumstances. Although these estimates are based
on management’s best knowledge of the amount, event or actions, actual results may differ from these estimates.
Pensions
The net asset or liability recognised in the balance sheet in respect of the Group’s retirement benefit obligations represents the liabilities
of the Group’s defined benefit pension scheme after deduction of the fair value of the related assets. The scheme’s liabilities are derived
by estimating the ultimate cost of benefits payable by the scheme and reflecting the discounted value of the proportion accrued by the
year end in the balance sheet. In order to arrive at this estimate, a number of key financial and non-financial assumptions are made by
management, changes to which could have a material impact upon the net deficit and also the net cost recognised in the income
statement.
The principal assumptions relate to the rate of inflation, mortality and the discount rate. The assumed rate of inflation is important
because this affects the rate at which salaries grow and therefore the size of the pension that employees receive upon retirement. Over
the longer term, rates of inflation can vary significantly.
The overall benefits payable by the scheme will also depend upon the length of time that members of the scheme live for; the longer
they remain alive, the higher the cost of the pension benefits to be met by the scheme. Assumptions are made regarding the expected
lifetime of the scheme members, based upon recent national experience. However, given the rates of advance in medical science, it is
uncertain whether these assumptions will prove to be accurate in practice.
The rate used to discount the resulting cash flows is equivalent to the market yield at the balance sheet date on high quality bonds with
a similar duration to the scheme’s liabilities.This rate is potentially subject to significant variation.The net cost recognised in the income
statement is also affected by the expected return on the scheme’s assets. This is determined on the bases of the asset mix within the
scheme at the beginning of the year and the market expectations for the return on each asset type.The impact of the pension estimates
on the Group’s accounts can be seen in note 28 on pages 68 to 70. 46
Lookers plc Report & Financial Statements 2006
Goodwill and Intangible Assets
The Group reviews the goodwill arising on the acquisition of subsidiaries or businesses and any intangible assets with an indefinite life
for impairment at least annually or when events or changes in economic circumstances indicate that impairment may have taken place.
The impairment review is performed by projecting the future cash flows, excluding finance and tax, based upon budgets and plans and
making appropriate assumptions about rates of growth and discounting these using a rate that takes into account prevailing market
interest rates and the risks inherent in the business. If the present value of the projected cash flows is less than the carrying value of the
underlying net assets and related goodwill, an impairment charge would be required in the income statement.This calculation requires
the exercise of significant judgement by management; if the estimates made prove to be incorrect or changes in the performance of
the subsidiaries affect the amount and timing of future cash flows, goodwill may become impaired in future periods.
The impact of the current year impairment review can be seen in note 8 on page 58.
In respect of acquisitions, at the point of acquisition the Group is required to assess whether intangible assets need to be separately
identified and measured. The measurement and assessment of the useful economic lives of tangible assets requires the use of
judgement by management.
3. Basis of Consolidation
The consolidated financial statements comprise the accounts of the Company and its subsidiary undertakings. An undertaking is
regarded as a subsidiary if the Group has control over its operating and financial policies. The profits and losses of subsidiary
undertakings are consolidated as from the effective date of acquisition or to the effective date of disposal.
The Group uses the purchase method of accounting to account for the acquisition of subsidiaries.The cost of an acquisition is measured
as the fair value of the assets acquired, equity instruments issued and liabilities incurred or assumed at the date of completion, plus
costs directly attributable to the acquisition. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business
combination are measured initially at their fair values at the acquisition date, irrespective of the extent of any minority interest. The
excess of the cost of acquisition over the fair value of the Group's share of the identifiable net assets acquired is recorded as goodwill.
If the cost of acquisition is less than the fair value of the net assets of the subsidiary acquired, the difference is recognised directly in
the Income Statement.
Intercompany transactions, balances and unrealised gains on transactions between Group companies are eliminated. Unrealised losses
are also eliminated unless the transaction provides evidence of an impairment of the asset transferred. Accounting policies of acquired
subsidiaries are changed where necessary to ensure consistency with the policies adopted by the Group.
4. Turnover
Turnover is measured at invoice price, excluding discounts and value added taxes, and principally comprises external vehicle sales,
parts, servicing and bodyshop sales. Vehicle and parts sales are recognised at the time of delivery to the customer. Service and
bodyshop sales are recognised in line with the work performed.Turnover also comprises commissions receivable for arranging vehicle
financing. Commissions are based on agreed rates and income is recognised at the time of approval of the vehicle finance by the
finance provider.
5. Segmental Reporting 
A business segment is a group of assets and operations engaged in providing goods and services that is subject to risks and returns
that are different from those of other business segments. The business segments are set out in note 1 on pages 53 and 54.
A geographical segment is engaged in providing goods and services within a particular economic environment that is subject to risks
and returns that are different from those of segments operating in other economic environments.
6. Exceptional Items
Exceptional items are items that are unusual because of their size, nature or incidence and which the Group’s management
consider should be disclosed separately to enable a full understanding of the Group’s results.
7. Goodwill arising on Consolidation
Goodwill represents the excess of the cost of an acquisition over the fair value of the Group's share of the net identifiable assets of the
acquired entity at the date of the acquisition. Goodwill on acquisitions of subsidiaries is shown separately on the balance sheet.
Goodwill arising on acquisitions is tested annually for impairment and is carried at cost less accumulated impairment losses.
Principal Accounting Policies (continued) 47
Lookers plc Report & Financial Statements 2006
Principal Accounting Policies (continued)
8. Intangible Assets
Intangible assets acquired on a business combination are capitalised separately from goodwill if the asset is separable and if fair value
can be measured reliably on initial recognition. Intangible assets so acquired are carried at cost less accumulated amortisation and any
impairment losses. Amortisation is provided on a straight line basis to allocate the cost of the asset over its estimated useful life. The
useful life of customer relationships is expected to be up to 20 years, and the useful lives of acquired brands varies between 5 years and
indefinite life. The Group has no internally generated intangible assets.
9. Investments
Investments held as fixed assets are stated at cost less provision for impairment.
10. Property, Plant and Equipment
Assets are stated at their deemed cost less depreciation. With the exception of certain properties which were revalued on 
31 December 2003, all assets are recorded at historical cost. The basis of the revaluation, being open market value was, in the opinion
of the Directors, approximate to fair value and has been adopted as deemed cost on transition to IFRS.The Group has adopted the cost
model under IAS 16,‘property, plant and equipment.’
Freehold buildings and long leasehold properties are depreciated over 50 years on a straight line basis to their estimated residual
values. Short leasehold properties are amortised by equal instalments over the periods of the respective leases.
Plant, machinery, including motor vehicles, fixtures, fittings, tools and equipment including computer equipment and terminals, are
depreciated on a straight line basis at rates varying between 10% and 33% per annum over their estimated useful lives.
Property, plant and equipment are transferred to “Non-current assets classified as held for resale” when management expect their
disposal to be completed within one year from the balance sheet date. Non-current assets classified as held for resale are stated at the
lower of net book value or expected proceeds.
11. Impairment of Assets 
Assets that have an indefinite life are not subject to amortisation and are tested annually for impairment. Assets subject to amortisation
are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable.
An impairment loss is recognised for the amount by which the asset's carrying amount exceeds its recoverable amount.The recoverable
amount is the higher of an asset's fair value less disposal costs, and value in use.
12. Leases
Assets purchased under hire purchase contracts are capitalised in the balance sheet and are depreciated over their useful lives. The
interest element of the rental obligation is charged to the Income Statement so as to give a constant rate of charge on the remaining
balance of the obligation.
Rental costs under operating leases are charged to the Income Statement in equal annual amounts over the periods of the leases.
13. Inventories
Inventories are valued at the lower of purchase price and net realisable value. Deposits paid for vehicles on consignment represent bulk
deposits paid to manufacturers. The Group recognises consignment stock in its balance sheet when there has been a substantial
transfer of the risks and rewards of ownership. The related liabilities are included in trade creditors.
14. Financial Assets and Liabilities
The Group only enters into derivative financial instruments in order to minimise the Group’s underlying exposure to interest rate risk.
Derivative financial instruments are initially recognised at fair value on the date a derivative contract is entered into and are
subsequently remeasured at their fair value. Gains and losses on remeasurement are taken to the Income Statement. The Group does
not apply hedge accounting under IAS 39 ‘Financial Instruments’ for any of its financial instruments. Details of the Group’s other
financial assets and liabilities are given in note 30 on page 70.
15. Taxation
The tax expense represents the sum of the tax currently payable and deferred tax. The tax currently payable is based on taxable profit
for the year.Taxable profit differs from net profit as reported in the Income Statement because it excludes items of income or expense
that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The Group’s liability for
current tax is calculated using tax rates that have been enacted or substantively enacted by the balance sheet date.
Deferred tax is provided in full, using the liability method, on taxable temporary differences arising between the tax bases of assets and
liabilities and their carrying amounts in the consolidated financial statements. However, if the deferred tax arises from initial recognition
of an asset or liability in a transaction other than a business combination that at the time of the transaction affects neither accounting
nor taxable profit or loss, it is not accounted for. Deferred tax is determined using tax rates (and laws) that have been enacted or 48
Lookers plc Report & Financial Statements 2006
Principal Accounting Policies 
(continued)
substantially enacted by the balance sheet date and are expected to apply when the related deferred tax asset is realised or the
deferred tax liability is settled. Deferred tax assets are recognised to the extent that it is probable that future taxable profit will be
available against which the temporary differences can be utilised. Deferred tax is not provided on temporary differences arising on
investments in subsidiaries, as the Group controls the timing of the reversal of the temporary difference and it is probable that the
temporary difference will not reverse in the foreseeable future.
16. Pension Costs
The Group operates the “Lookers Pension Plan” which is a defined benefit pension scheme providing benefits based on final
pensionable salary. The defined benefit scheme defines the amount of pension benefit that an employee will receive on retirement,
dependent on one or more factors including age, years of service and salary. This scheme is closed to new members.
The last triennial valuation was carried out at 31 December 2004 by Mercer Human Resource Consulting Limited and has been updated
to 31 December 2006 by a qualified independent actuary to take account of IAS 19 requirements.
Under IAS 19, the defined benefit surplus or deficit is included on the Group’s balance sheet. Liabilities are calculated based on the
current yields on high quality corporate bonds and on market conditions. Surpluses are only included to the extent that they are
recoverable through reduced contributions in the future or through refunds from the scheme.
The current service cost and any past-service costs are included in the Income Statement within operating costs. The expected return
on the scheme assets, net of the impact of the unwinding of the discount on scheme liabilities, is included within finance costs.
Actuarial gains and losses arising from experience adjustments and changes in actuarial assumptions are charged or credited, net of
deferred tax, each year to reserves and shown in the Statement of Recognised Income and Expense.
Past-service costs are recognised immediately in income, unless the changes to the pension plan are conditioned on the employees
remaining in service for a specified period of time (the vesting period). In this case, the past-service costs are amortised on a straight-line
basis over the vesting period.
The Group also provides pension arrangements for employees and certain Directors under defined contribution schemes.
Contributions for these schemes are charged to the Income Statement in the year in which they are payable.
17. Cash and Cash Equivalents
For the purpose of the cash flow statement, cash and cash equivalents comprise deposits with banks and financial institutions,
bank and cash balances, and liquid investments, net of bank overdrafts. In the balance sheet, bank overdrafts are included in
current borrowings.
18. Share Based Payments
The Group issues equity-settled share-based payments to certain employees. Equity-settled share-based payments are measured
at fair value (excluding the effect of non-market-based vesting conditions) at the date of grant. The fair value determined at the
grant date of the equity-settled share-based payments is expensed on a straight-line basis over the vesting period, based on the
Group’s estimate of share that will eventually vest and adjusted for the effect of non-market-based vesting conditions.
Fair value is measured by use of the Black Scholes model. The expected life used in the model has been adjusted, based on
management’s best estimate, for the effects of non-transferability, exercise restrictions, and behavioural considerations. 49
Lookers plc Report & Financial Statements 2006
Group Company
2006 2005 2006 2005
Note £m £m £m £m
Continuing operations
Revenue 1 1,426.7 1,231.6 - -
Cost of sales (1,242.8) (1,081.4) - -
Gross profit 183.9 150.2 - -
Distribution costs (106.3) (90.9) - -
Administrative expenses (46.3) (38.8) (4.7) (5.7)
Other operating income 0.4 3.2 14.2 17.8
Profit from operations 31.7 23.7 9.5 12.1
Profit from operations before amortisation,
impairment and exceptional items 36.6 27.1 10.0 13.2
Amortisation of intangible assets 9 (0.8) (0.7) - -
Impairment of goodwill 8 - (0.2) - -
Exceptional items 3 (4.1) (2.5) (0.5) (1.1)
Profit from operations 31.7 23.7 9.5 12.1
Interest payable 2 (10.7) (9.2) (6.0) (5.6)
Interest receivable 2 0.5 1.9 3.7 4.2
Debt issue costs 2 (0.1) - (0.1) -
Profit before tax, amortisation,
impairment and exceptional items and debt issue costs 26.4 18.0 7.2 10.0
Amortisation of intangible assets (0.8) (0.7) - -
Impairment of goodwill - (0.2) - -
Total exceptional items (4.1) (0.7) - 0.7
Debt issue costs (0.1) - (0.1) -
Profit on ordinary activities before taxation 3 21.4 16.4 7.1 10.7
Taxation 4 (6.8) (4.8) (2.6) -
Profit for the year 25 14.6 11.6 4.5 10.7
Continuing operations
Earnings per share
Basic earnings per share 6 8.13p 6.53p
Diluted earnings per share 6 8.09p 6.52p
Income Statements
for the year ended 31 December 2006 50
Lookers plc Report & Financial Statements 2006
Group Company
2006 2005 2006 2005
Note £m £m £m £m
Actuarial gains/(losses) recognised in post 
retirement benefit scheme 28 5.1 (3.1) 5.1 (3.1)
Movement on deferred taxation on pension liability (1.5) 0.9 (1.5) 0.9
Net gains/(losses) recognised directly in equity 3.6 (2.2) 3.6 (2.2)
Profit for the financial period 14.6 11.6 4.5 10.7
Total recognised income and expense for the period 18.2 9.4 8.1 8.5
Statements of Recognised Income and Expense
for the year ended 31 December 2006 51
Lookers plc Report & Financial Statements 2006
Balance Sheets
as at 31 December 2006
Group Company
2006 2005 2006 2005
Note £m £m £m £m
NON-CURRENT ASSETS
Goodwill 8 28.6 20.3 - -
Intangible assets 9 16.0 16.8 - -
Property, plant and equipment 10 160.9 137.2 0.8 0.4
Investment in subsidiaries 11 - - 53.7 53.7
Deferred tax asset 20 - - 3.7 6.6
205.5 174.3 58.2 60.7
CURRENT ASSETS
Inventories 12 257.9 190.8 - -
Trade and other receivables 13 82.6  66.8 154.2 93.1
Cash and cash equivalents 14 2.9   2.4 - 28.5
343.4 260.0 154.2 121.6
TOTAL ASSETS 548.9 434.3 212.4 182.3
CURRENT LIABILITIES
Financial liabilities
- Bank loans and overdrafts 17 8.3 21.2 7.5 14.3
- Hire purchase obligations 17 0.1 0.1 - -
- Derivative financial instruments 18 - 0.4 - 0.4
Trade and other payables 15 335.0 239.8 35.4 36.3
Current tax liabilities 16 3.9 7.6 3.1 2.2
Short term provisions 19 0.3 0.9 - -
347.6 270.0 46.0 53.2
NET CURRENT (LIABILITIES)/ASSETS (4.2)  (10.0) 108.2 68.4
NON-CURRENT LIABILITIES
Financial liabilities
- Bank loans 17 76.4 52.7 87.4 46.4
- Hire purchase obligations 17 0.1 - - -
Retirement benefit obligation 28 11.5 19.2 11.5 19.2
Deferred tax liabilities 20 7.9 1.4 - -
Long term provisions 19 1.1 0.8 - -
97.0 74.1 98.9 65.6
TOTAL LIABILITIES 444.6 344.1 144.9 118.8
NET ASSETS 104.3 90.2 67.5 63.5
SHAREHOLDERS’ EQUITY
Ordinary share capital 21 9.0 8.9 9.0 8.9
Share premium 22 4.3 2.6 4.3 2.6
Capital redemption reserve 23 14.6 14.6 14.6 14.6
Other reserve 24 0.2 - 0.2 -
Retained earnings 25 76.2 64.1 39.4 37.4
TOTAL EQUITY 26 104.3 90.2 67.5 63.5
The financial statements on pages 45 to 71 were approved by the Directors on 12 March 2007. Signed on behalf of the Directors.
H. K. Surgenor D. V. Dyson
Director Director 52
Lookers plc Report & Financial Statements 2006
Group Company
2006 2005 2006 2005
Note £m £m £m £m
Cash flows from operating activities
Net profit 14.6 11.6 4.5 10.7
Adjustments for:
Tax 6.8 4.8 2.6 -
Depreciation 3 5.8 4.7 0.3 0.3
Dividend received - - (5.4) (10.2)
Loss on disposal of plant and equipment 3 0.4 - - -
Profit on disposal of properties 3 (0.5) (0.4) - -
Cost of aborted Reg Vardy bid 3 - 1.2 - 1.2
Impairment of goodwill 3 - 0.2 - -
Amortisation of intangible assets 3 0.8 0.7 - -
Interest income (0.5) (0.1) (3.7) (2.4)
Interest receivable on VAT refund - (1.8) - (1.8)
Interest payable 10.7 9.2 6.0 5.6
Debt issue costs 0.1 - 0.1 -
Share based payment charge 0.2 - 0.2  -
Changes in working capital (excluding effects of
acquisitions and disposal of subsidiaries)
Increase in inventories (58.4) (40.1) - -
Increase in trade and other receivables (15.5) (8.5) (61.1) (13.7)
Increase/(decrease) in payables 95.0  73.0 (0.1) 13.1
Difference between pension charge and 
cash contributions (3.4) (2.5) (3.4)  (2.5)
Movement in provisions (0.4) (1.8) - -
Cash generated from operations 55.7 50.2 (60.0)  0.3
Interest paid (10.9)  (8.4) (6.0) (5.1)
Interest received 0.1 1.9 3.3 4.2
Tax paid (5.5)  (4.0) (0.3)  (2.5)
Net cash from operating activities 39.4  39.7 (63.0)  (3.1)
Cash flows from investing activities
Acquisition of subsidiaries (net of cash acquired) (27.6)  (34.6) - -
Purchase of property, plant and equipment (20.3)  (19.9) (0.7) (0.3)
Proceeds from sale of property, plant and equipment 1.3 2.6 - -
Proceeds from sale of business 1.5  1.9 - -
Dividends received - - 5.4  10.2
Net cash (used)/generated by investing activities (45.1)  (50.0) 4.7 9.9
Cash flows from financing activities
Net proceeds from issue of ordinary share capital 0.7 0.1 0.7 0.1
Repayment of loans (70.6) (13.5) (49.5) (9.9)
Net proceeds from issue of new bank loans 84.7 24.0 84.7 24.0
Debt issue costs (0.9) - (0.9) -
Principal payments under HP agreements (0.1) (0.2) - -
Dividends paid to Group shareholders (5.1) (3.5) (5.1) (3.5)
Net cash from financing activities 8.7 6.9 29.9 10.7
Increase/(decrease) in cash and cash equivalents 3.0 (3.4) (28.4) 17.5
Cash and cash equivalents at 1 January (0.9)  2.5 28.4 10.9
Cash and cash equivalents at 31 December 2.1 (0.9) - 28.4
Cash Flow Statements
for the year ended 31 December 2006 53
Lookers plc Report & Financial Statements 2006
1. SEGMENTAL REPORTING
Primary reporting format - business segments
Year ended Franchised Used Car Parts 
31 December 2006 Businesses Supermarkets Distribution Unallocated Group
£m £m £m £m £m
Continuing operations
Turnover 1,262.0 64.9 99.8 1,426.7
Segmental result 29.4 0.2 7.0 36.6
Amortisation of intangible assets - (0.2) (0.6) (0.8)
Exceptional Items (2.5) - (1.6) (4.1)
Interest expense (10.7) 
Interest income 0.5 
Debt issue costs (0.1) 
Profit before taxation 21.4 
Taxation (6.8) 
Profit for the financial year from 
continuing operations attributable 
to shareholders 14.6 
Segmental assets 449.2 20.5 78.4 548.1
Unallocated assets
- Property, plant and equipment 0.8 0.8 
Total assets 548.9 
Segmental liabilities 297.8 14.8 37.1 349.7
Unallocated liabilities
- Corporate borrowings 94.9 94.9 
Total liabilities 444.6 
Other segmental items
Capital expenditure (including acquisitions) 24.3 - 6.5 30.8
Depreciation (note 10) 4.6 0.4 0.8 5.8
Amortisation of intangible assets (note 9) - 0.2 0.6 0.8
Impairment of trade receivables (note 13) 0.3 - 0.6 0.9 
Notes to the Financial Statements
for the year ended 31 December 2006 54
Lookers plc Report & Financial Statements 2006
Notes to the Financial Statements
for the year ended 31 December 2006 (continued)
1. SEGMENTAL REPORTING (continued)
Year ended Franchised Used Car Parts 
31 December 2005 Businesses Supermarkets Distribution Unallocated Group
£m £m £m £m £m
Continuing operations
Turnover 1,110.2 44.8 76.6 1,231.6 
Segmental result 20.6 1.6 4.9 27.1  
Amortisation of intangible assets - (0.2) (0.5) (0.7)
Impairment of goodwill (0.2) - - (0.2)
Exceptional items (2.5) - - (2.5)
Interest expense (9.2)
Interest income 0.1
Interest on VAT refund 1.8 - - 1.8
Profit before taxation 16.4
Taxation (4.8)
Profit for the financial year from 
continuing operations attributable
to shareholders 11.6
Segmental assets 336.4 28.3 69.2 433.9
Unallocated assets
- Property, plant and equipment 0.4 0.4
Total assets 434.3
Segmental liabilities 238.7 12.8 32.0 283.5 
Unallocated liabilities
- Corporate borrowings 60.6 60.6 
Total liabilities 344.1 
Other segmental items
Capital expenditure (including acquisitions) 19.9 11.1 6.7 37.7
Depreciation (note10) 4.0 0.1 0.6 4.7
Amortisation of intangible assets (note 9) - 0.2 0.5 0.7 
Impairment of goodwill (note 8) 0.2 - - 0.2 
Impairment of trade receivables (note 13) 0.4 - 0.5 0.9
As at 31 December 2006, the Group is organised into 3 main business segments:
Franchised Businesses, Used Car Supermarkets and Parts Distribution.
Segment assets include property, plant and equipment, inventories, debtors and operating cash. Segment liabilities comprise operating
liabilities and exclude certain corporate borrowings. Capital expenditure comprises additions to property, plant and equipment, including
additions resulting from acquisitions through business combinations.
Secondary format - geographical segment
The Group operates wholly within the UK.
Company
The Company’s business is to invest in its subsidiaries and, therefore, it operates in a single segment. 55
Lookers plc Report & Financial Statements 2006
2. FINANCE COSTS - NET
Group Company
2006 2005 2006 2005
£m £m £m £m
Interest expense
On amounts wholly repayable within 5 years:
Interest payable on bank borrowings (7.2) (5.7) (5.6) (4.3)
Interest payable on hire purchase contracts - (0.1) - -
Interest on consignment vehicle liabilities (3.3) (2.4) - -
Fair value losses - interest rate swaps and collars - (0.4) - (0.4)
Interest due to Group companies - - (0.2) (0.3)
Net interest on pension scheme (note 28) (0.2) (0.6) (0.2) (0.6)
Interest and similar charges payable (10.7) (9.2) (6.0)  (5.6)
Amortisation of debt issue costs (0.1) - (0.1) -
Interest income
Bank interest 0.1 0.1 - -
Fair value gains - interest rate swaps and collars 0.4 - 0.4 -
Interest received from Group companies - - 3.3 2.4
Interest received on VAT refund - 1.8 - 1.8
Total interest receivable 0.5 1.9 3.7  4.2
Finance costs - net (10.3) (7.3) (2.4)  (1.4)
3. PROFIT ON ORDINARY ACTIVITIES BEFORE TAXATION
Group Company
2006 2005 2006 2005
£m £m £m £m
The following items have been included in
arriving at operating profit
Staff costs (note 7) 110.1 95.7 4.8 3.1
Depreciation of property, plant and equipment
- Owned assets 5.7 4.6 0.3 0.3
- Under finance leases 0.1 0.1 - -
Amortisation of intangibles 0.8 0.7 - -
Impairment of goodwill - 0.2 - -
Loss on disposal of plant and equipment 0.4 - - -
Other operating lease rentals payable
- Plant & machinery 1.5 1.4 0.1 -
- Property 3.9 2.4 - -
Exceptional items
Loss on termination of businesses (0.5) (1.9) (0.1) (0.1)
Bid defence costs/strategic review (4.1) - (0.4) -
Profit on disposal of properties 0.5 0.4 - -
Aborted acquisition costs - (1.2) - (1.2)
VAT refund - 0.2 - 0.2
(4.1) (2.5) (0.5) (1.1)
The terminated businesses represent the closure of certain franchised branches.These activities did not constitute a separate major line of
business and so have not been classified as discontinued.
Notes to the Financial Statements
for the year ended 31 December 2006 (continued) 56
Lookers plc Report & Financial Statements 2006
4. TAXATION
Group Company
2006 2005 2006 2005
£m £m £m £m
Current tax expense
Current year 5.5 5.3 - 0.3
Adjustment in respect of prior years (3.7) (0.5) 1.2 (0.5)
1.8 4.8 1.2 (0.2)
Deferred tax expense
Deferred tax 1.6 0.3 1.2 0.2
Adjustment in respect of prior years 3.4 (0.3) 0.2 -
5.0 - 1.4 0.2
Total income tax expense in Income Statement 6.8 4.8 2.6 -
Group Company
2006 2005 2006 2005
£m £m £m £m
Tax on items charged to equity
Deferred tax on pension liability (1.5) 0.9 (1.5) 0.9
The tax charge was affected by the following factors:
Standard rate of corporation tax 30.0% 30.0% 30.0% 30.0%
Inter Group dividend - - (22.8)% (28.7)%
Group relief - - 8.9% -
Capital profits and other non-taxable items - - - 3.8%
Items not allowable for taxation 5.1% 6.9% 0.4% -
Capital gains (1.9)% (2.7)% - -
Adjustments to prior years’ taxation (1.4)% (4.9)% 20.1% (5.1)%
31.8% 29.3% 36.6% (0.0)%
The future tax charge will be affected by the levels of expenditure not deductible for taxation and any profits on sale of properties.
5. DIVIDENDS
2006 2005
Group and Company £m £m
Final dividend 2.10p paid 31 May 2006 (2005: 1.62p)* 3.8 2.9
Interim dividend 1.3p paid 30 November 2006 (2005: 0.95p)* 2.3 1.7
6.1 4.6
*2005 restated to take account of the share split disclosed in note 21.
In addition, the Directors are proposing a final dividend in respect of the financial year ending 31 December 2006 of  2.20p per share
which will absorb an estimated £4.0m of shareholders’ funds. It will be paid on 31 May 2007 to shareholders who are on the register of
members on 13 April 2007.
3. PROFIT ON ORDINARY ACTIVITIES BEFORE TAXATION (continued)
Services provided by the Group’s auditor
During the year the Group obtained the following services from the Group’s auditor at costs as detailed below:
2006 2005
Group £m
Fees payable to the Company’s auditors for the audit of the Company’s annual accounts - -
Fees payable to the Company’s auditors and their associates for other services to the Group
The audit of the Company’s subsidiaries pursuant to legislation 0.2 0.2
Total 0.2 0.2
During the year, but prior to appointment as auditors, Deloitte & Touche LLP received £0.4m in respect of VAT advice. During the year
and prior to their resignation, PricewaterhouseCoopers LLP received £0.7m (2005: £0.3m) in respect of corporate finance services.
Notes to the Financial Statements
for the year ended 31 December 2006 (continued)
£m 57
Lookers plc Report & Financial Statements 2006
6. EARNINGS PER SHARE
The calculation of earnings per ordinary share is based on profits on ordinary activities after taxation amounting to £14.6m (2005:
£11.6m) and a weighted average of ordinary shares in issue during the period of 179,616,603 (2005: 177,617,930)*.
The diluted earnings per share is based on the weighted average number of shares, after taking account of the dilutive impact of shares
under option of 901,994 (2005: 282,565). The 2005 numbers have been restated to take account of the share split disclosed in note 21.
Adjusted earnings per share is stated before amortisation of intangible assets, impairment of goodwill, loss on termination of businesses,
bid defence/strategic reviews, profit on disposal of properties, aborted acquisition costs, exceptional VAT refund and related interest, and
is calculated on profits of £19.1m (2005: £13.4m) for the period.
2006 2006 2005 2005
Earnings Earnings
Earnings per share Earnings per share
Continuing operations £m p £mp
Basic EPS
Earnings attributable to ordinary shareholders 14.6 8.13 11.6 6.53
Effect of dilutive securities (0.04) (0.01)
Diluted EPS 14.6 8.09 11.6 6.52
Adjusted EPS
Earnings attributable to ordinary shareholders 14.6 8.13 11.6 6.53
Amortisation of intangible assets and
impairment of goodwill 0.8 0.44 0.9 0.51
Exceptional items (net) 4.1 2.28 0.7 0.39
Tax on exceptional items (net) (0.4) (0.22) 0.2 0.11
Adjusted EPS 19.1 10.63 13.4 7.54
7. INFORMATION REGARDING EMPLOYEES
Group Company
2006 2005 2006 2005
£m £m £m £m
Employee costs during the year
Wages & salaries 98.4 85.7 4.1 2.6
Social security costs 9.5 8.0 0.5 0.3
Other pension costs 2.2 2.0 0.2 0.2
110.1 95.7 4.8 3.1
2006 2005 2006 2005
No. No. No. No.
Average number employed during the year
(including Directors)
Productive 1,278 1,237 - -
Selling and distribution 2,314 2,121 - -
Administration 1,291 1,133 76 76
4,883 4,491 76 76
2006 2005 2006 2005
£m £m £m £m
Key management compensation
Salaries and short term employee benefits 2.9 1.9 1.1 0.8
Post-employment benefits 0.1 0.2 0.1 0.1
Long term benefits 0.8 0.7 0.4 0.3
3.8 2.8 1.6 1.2
The key management compensation given above includes Directors.
During the year the aggregate gains made on the exercise of share options by Directors was £76,000 (2005: £19,000). Further details of
Directors’ remuneration is included in the Directors’ Remuneration Report on pages 39 to 42.
Notes to the Financial Statements
for the year ended 31 December 2006 (continued) 58
jLookers plc Report & Financial Statements 2006
Notes to the Financial Statements
for the year ended 31 December 2006 (continued)
8. GOODWILL
2006 2005
Group £m £m
Cost 
As at 1 January 20.5 15.2
On acquisition (note 27) 8.3 5.3
As at 31 December 28.8 20.5
Aggregate impairment
As at 1 January 0.2 -
Impairment for the year - 0.2 
As at 31 December 0.2 0.2
Net book amount at 31 December 28.6 20.3
During the year, the acquired goodwill was tested for impairment in accordance with IAS 36. Following the impairment test, a goodwill
impairment charge of £nil (2005: £0.2m) has been recognised within administrative expenses.
For the purposes of impairment testing of goodwill and intangible assets, the Directors recognise the Group’s Cash Generating Units
(“CGU”) to be connected groupings of dealerships, the Used Car Supermarket operations and each subsidiary comprising the Parts Division.
The recoverable amount of each CGU’s goodwill and intangible assets is based on value in use using Board approved budgeted projections
over the next five years for each CGU to calculate each CGU’s terminal value. An annual growth rate of 2.25% (UK GDP) is assumed and a
risk adjusted discount rate reflecting the Group’s Weighted Average Cost of Capital (“WACC”) is applied.
9. INTANGIBLE ASSETS
Customer 
relationships Brands Total
Group £m £m £m
Acquired intangible assets
Cost 
As at 1 January 2006 and 31st December 2006 11.5 6.2 17.7
Aggregate amortisation and impairment
As at 1 January 2006 0.7 0.2 0.9
Charge for the year 0.6 0.2 0.8  
As at 31 December 2006 1.3 0.4 1.7
Net book amount at 31 December 2006 10.2 5.8 16.0 
Cost
As at 1 January 2005 9.7 3.9 13.6
On acquisition 1.8 2.3 4.1
As at 31 December 2005 11.5 6.2 17.7
Aggregate amortisation and impairment
As at 1 January 2005 0.2 - 0.2
Charge for the year 0.5 0.2 0.7
As at 31 December 2005 0.7 0.2 0.9
Net book amount at 31 December 2005 10.8 6.0 16.8
Within Brands, intangible assets of £4.7m (2005: £4.7m) are deemed by the Directors to have an indefinite life which is confirmed by the
annual impairment test. All amortisation charges in the year have been recognised within administrative expenses.The impairment testing
for intangible assets is performed as described in note 8. 59
Lookers plc Report & Financial Statements 2006
10. PROPERTY, PLANT AND EQUIPMENT
Fixtures,
Long Short fittings,
Freehold leasehold leasehold Plant & tools &
property property property machinery equipment Total
Group £m £m £m £m £m £m
As at 1 January 2006 89.1 35.8 4.6 11.0 15.4 155.9
On acquisition (note 27) 2.7 2.6 3.9 0.7 0.4 10.3 
Additions in year 9.3 2.2 0.4 2.8 5.8 20.5
Reclassification - (0.4) 0.4 (0.3) 0.3 -
Disposals (0.1) (0.5) - (2.8) (2.8) (6.2) 
As at 31 December 2006 101.0 39.7 9.3 11.4 19.1 180.5 
Accumulated depreciation
As at 1 January 2006 1.5 0.7 0.4 6.6 9.5 18.7
Charge for the year 0.5 0.6 0.3 1.6 2.8 5.8
Reclassification - (0.1) 0.1 (0.1) 0.1 - 
Disposals - (0.1) - (2.1) (2.7) (4.9)
As at 31 December 2006 2.0 1.1 0.8 6.0 9.7 19.6
Net book value at 
31 December 2006 99.0 38.6 8.5 5.4 9.4 160.9
Fixtures,
Long Short fittings,
Freehold leasehold leasehold Plant & tools &
property property property machinery equipment Total
Group £m £m £m £m £m £m
As at 1 January 2005 67.0 30.4 2.0 9.2 12.8 121.4
On acquisition  12.6 4.0 0.2 0.5 0.4 17.7
Additions in year 9.9 2.7 2.4 2.1 2.9 20.0
Disposals (0.4) (1.3) - (0.8) (0.7) (3.2)
As at 31 December 2005 89.1 35.8 4.6 11.0 15.4 155.9
Accumulated depreciation
As at 1 January 2005 1.1 0.5 0.2 5.8 7.6 15.2
Charge for the year 0.4 0.3 0.2 1.3 2.5 4.7
Disposals - (0.1) - (0.5) (0.6) (1.2)
As at 31 December 2005 1.5 0.7 0.4 6.6 9.5 18.7
Net book value at 
31 December 2005 87.6 35.1 4.2 4.4 5.9 137.2
Assets held under finance leases, capitalised and included in plant & machinery and fixtures and fittings:
2006 2005
£m £m
Cost 0.5 0.4
Aggregate depreciation (0.2) (0.1)
0.3 0.3
In accordance with IFRS 1, ‘First time adoption of International Reporting Standards’, and IAS 16, ‘Property, plant and equipment’ the
Group has adopted the cost model, electing to use revaluations made under previous UK GAAP as deemed cost for its freehold and
leasehold properties.
The Group’s freehold and leasehold properties were revalued on 31 December 2003, by independent qualified valuers on the basis of open
market value in England and Scotland by Messrs. Donaldsons, Chartered Surveyors, and in Northern Ireland by Messrs. Hamilton Osborne
King, Chartered Surveyors. The Directors are satisfied that open market value approximates to fair value.
Notes to the Financial Statements
for the year ended 31 December 2006 (continued) 60
Lookers plc Report & Financial Statements 2006
Notes to the Financial Statements
for the year ended 31 December 2006 (continued)
10. PROPERTY, PLANT AND EQUIPMENT (continued)
Fixtures, fittings,
tools &
equipment
Company £m
Cost
As at 1 January 2006 1.6
Additions in year 0.7
As at 31 December 2006 2.3
Accumulated depreciation
As at 1 January 2006 1.2
Charge for the year 0.3
As at 31 December 2006 1.5
Net book value at 31 December 2006 0.8
Fixtures, fittings,
tools &
equipment
Company £m
Cost 
As at 1 January 2005 1.3
Transfer from Group Companies 0.1
Additions in year 0.3
Disposals (0.1)
As at 31 December 2005 1.6
Accumulated depreciation
As at 1 January 2005 1.0
Charge for the year 0.3
Disposals (0.1)
As at 31 December 2005 1.2
Net book value at 31 December 2005 0.4 61
Lookers plc Report & Financial Statements 2006
Notes to the Financial Statements
for the year ended 31 December 2006 (continued)
11. INVESTMENTS
2006 2005
Company £m £m
Cost
At 1 January and 31 December 2006 53.7 53.7
Details of the principal subsidiary undertakings are as follows:
DSM Autos Limited
Bolling Investments Limited
Charles Hurst Limited
Charles Hurst Motors Limited
Lookers Motor Group Limited (formerly Lookers North West Limited)
Lookers Southern Limited
Lookers Birmingham Limited
MB South Limited
FPS Distribution Limited
Apec Limited
All subsidiaries are incorporated and registered in England and operate in England and Wales with the exception of Charles Hurst Limited
and Charles Hurst Motors Limited which are incorporated, registered and operate in Northern Ireland and Scotland. All subsidiary
companies are wholly owned with the exception of Lookers Birmingham Limited and Charles Hurst Motors Limited in which 99%
shareholdings are held.
A full list of subsidiary undertakings will be annexed to the Company’s next Annual Return.
12. INVENTORIES
2006 2005
Group £m £m
Goods for resale 172.9 137.3
Bulk deposits paid for vehicles on consignment 1.1 1.5
Consignment vehicles 83.9 52.0
257.9 190.8
13. TRADE AND OTHER RECEIVABLES
Group Company
2006 2005 2006 2005
£m £m £m £m
Amounts falling due within one year:
Trade debtors 64.7 56.9 - -
Less: provision for impairment of receivables (0.9) (0.9) - -
63.8  56.0 - -
Amounts owed by group undertakings - - 150.0 90.2
Other debtors 8.4 4.3 1.4 2.0
Prepayments 10.4 6.5 2.8 0.9
82.6 66.8 154.2 93.1
Concentrations of credit risk with respect to trade receivables are limited due to the Group’s customer base being large and unrelated.
Due to this and the fact that part of the Group’s ledger balance is insured, the Directors believe there is no further credit risk provision
required in excess of normal provision for doubtful receivables. 62
Lookers plc Report & Financial Statements 2006
Notes to the Financial Statements
for the year ended 31 December 2006 (continued)
14. CASH AND CASH EQUIVALENTS
Group Company
2006 2005 2006 2005
£m £m £m £m
Cash at bank and in hand 2.9 2.4 - 28.5
15. TRADE AND OTHER PAYABLES
Group
Represented Company
2006 2005 2006 2005
£m £m £m £m
Trade payables* 94.8 96.1 2.6 1.8
Repurchase Commitments* 79.6 33.0 - -
Consignment vehicle creditors 83.9 52.0 - -
Amounts owed to Group undertakings - - 4.0 5.3
Amounts owed to related parties
(all trading balances) - 11.3 - 8.4
Other tax and social security payable 6.7 7.6 0.7 -
Other creditors 49.2 21.2 24.8 14.9
Accruals & deferred income 20.8 18.6 3.3 5.9
335.0 239.8 35.4 36.3
*Trade payables have been represented to separately show repurchase commitments relating to stock.
16. CURRENT TAX LIABILITIES
Group Company
2006 2005 2006 2005
£m £m £m £m
Current tax liabilities 3.9 7.6 3.1 2.2
17. BORROWINGS
Group Company
2006 2005 2006 2005
£m £m £m £m
Current
Unsecured bank loans 7.5 17.9 7.5 14.3
Bank overdrafts 0.8 3.3 - -
Hire purchase obligations 0.1 0.1 - -
8.4 21.3 7.5 14.3
Non-current
Unsecured bank loans 76.4 52.7 87.4 46.4
Hire purchase obligations 0.1 - - -
76.5 52.7 87.4 46.4
Total borrowings 84.9 74.0 94.9 60.7 63
Lookers plc Report & Financial Statements 2006
Notes to the Financial Statements
for the year ended 31 December 2006 (continued)
17. BORROWINGS (continued)
Group Company
2006 2005 2006 2005
£m £m £m £m
Bank loans and overdraft repayable:
Less than one year 8.3 21.2 7.5 14.3
More than one year and not more than two years 7.5 17.7 7.5 14.1
More than two years and not more than five years 68.9 35.0 79.9 32.3
84.7 73.9 94.9 60.7
Of this amount £75.0m (2005: £70.6m) is repayable in instalments commencing up until 2010 (2005: 2010).
£0.1m  of hire purchase obligations are repayable between one and five years (2005: £6,000).
Interest rate information is disclosed in note 18 (Derivative financial instruments).
The Company is jointly and severally liable under cross guarantees within the Group for bank loans and overdrafts which amounted to
£10.6m (2005: £13.4m).
18. DERIVATIVE FINANCIAL INSTRUMENTS
The objectives, policies and strategies for holding or issuing financial instruments adopted by the Board are given in the Directors’ Report.
Instruments held at the year end are set out below, and in note 30.
Interest rate collar and swaps
The notional principal amounts of the outstanding interest rate collar at 31 December 2006 was £50.0m (2005: £50.0m).This collar reduces
over time between the balance sheet date and 31 August 2010. The collar has a floor of 3.75% and a cap of 5.75%. If the 3 month LIBOR
fixes at, or below 3.75%, then the Group pays 4.84% for that fixing, resetting every quarter.
Its fair value at 31 December 2006 was £nil (2005 - liability of £0.4m).
The Directors have based their estimation of these financial instruments’ fair value on the valuation provided by the external financial
institutions counter party.
Forward exchange contracts
Apec, a subsidiary company, holds forward exchange contracts as a commercial hedge against some of its Euro and US Dollar purchases.
At 31 December 2006 the principal amount of these contracts was £17.1m (2005: £9.6m) , all of which mature during 2007.The fair value of
those held at the year end was £17.1m (2005: £9.6m).
19. PROVISIONS
Dilapidations Closure costs Total
Group £m £m £m
As at 1 January 2006 0.8 0.9 1.7
Charged to Income Statement 0.5 - 0.5 
Utilised in year - (0.8) (0.8)
As at 31 December 2006 1.3 0.1 1.4
Provisions have been allocated between current and non-current as follows:
2006 2005
£m £m
Current 0.3 0.9
Non-current 1.1 0.8
1.4 1.7 64
Lookers plc Report & Financial Statements 2006
Notes to the Financial Statements
for the year ended 31 December 2006 (continued)
19. PROVISIONS (continued)
Dilapidations
On the acquisition of FPS Distribution Limited in 2004, a dilapidation provision was recognised as a fair value adjustment. This company
operates from a number of leasehold premises under full repairing leases and, at the time of the acquisition, it was recognised that repairs
were required to put the buildings back into the state of repair required under the leases. Currently, these leases are expected to expire
between 2007 and 2018.
Closure costs
In July 2005, the Group gave written notice to Nissan UK in accordance with its Franchise agreement to exit from its three mainland Nissan
outlets. In November 2005 the Group sold one of these sites and during the year one further site has been sold with the other being closed
in January 2006. The costs associated with the closure, sale and the onerous elements of the contract were £0.9m and these were fully
provided at 31 December 2005.
20. DEFERRED TAXATION
Deferred tax is calculated in full on temporary differences under the liability method using a tax rate of  30% (2005: 30%). The movement
on the deferred tax account is as shown below:
Group Company
2006 2005 2006 2005
£m £m £m £m
As at 1 January 2006 1.4 0.8 (6.6) (5.9)
On acquisition (note 27) - 1.5 - -
Charged to Income Statement (note 4) 5.0 - 1.4 0.2
Charged/(credited) to Statement of Recognised 
Income and Expenditure 1.5 (0.9) 1.5 (0.9)
As at 31 December 2006 7.9 1.4 (3.7) (6.6)
The deferred tax charged/(credited) to equity during the current and prior year related to the deferred tax movement on the pension
liability.
Deferred tax assets have been recognised in respect of all tax losses and other temporary differences giving rise to deferred tax assets
because it is probable that these assets will be recovered.
The movements on deferred tax assets and liabilities (prior to the offsetting of balances within the same jurisdiction as permitted by IAS
12) during the period are shown below. Deferred tax assets and liabilities are only offset where there is a legally enforceable right of offset
and there is an intention to settle the balance net.
Group
Deferred tax liabilities
Accelerated tax
depreciation Capital gains Total
£m £m £m
As at 1 January 2006 5.8 3.1 8.9
Charged/(credited) to Income Statement 3.5 (0.4) 3.1
As at 31 December 2006 9.3 2.7 12.0
Deferred tax assets
Employee Short term timing
benefits differences Total
£m £m £m
As at 1 January 2006 (5.7) (1.8) (7.5)
Charged to Income Statement 0.8 1.1 1.9
Charged to Statement of Recognised Income and Expense 1.5 - 1.5
As at 31 December 2006 (3.4) (0.7) (4.1)
Net deferred tax liability
As at 31 December 2006 7.9
As at 31 December 2005 1.4 65
Lookers plc Report & Financial Statements 2006
20. DEFERRED TAXATION (continued)
Company
Deferred tax assets Employee Accelerated tax
benefits Provisions depreciation Total
£m £m £m £m
As at 1 January 2006 (5.7) (0.8) (0.1) (6.6)
Charged to Income Statement 0.8 0.6 - 1.4
Charged to Statement of Recognised Income and Expense 1.5 - - 1.5
As at 31 December 2006 (3.4) (0.2) (0.1) (3.7)
21. SHARE CAPITAL
Group and Company 2006 2005
Shares £m Shares £m
Authorised
Ordinary shares of 5p each 270,000,000 13.5 54,000,000 13.5
Allotted, called up and fully paid 
ordinary shares of 5p each 
As at 1 January 2006 35,727,093 8.9 35,354,132 8.8
Allotted under share option schemes 85,081 - 50,564 -
Adjustment for stock split 143,248,696 - --
Allotted under MSP 451,150 - --
Allotted on scrip issue 683,011 0.1 322,397 0.1
As at 31 December 2006 180,195,031 9.0 35,727,093 8.9
On 3 July 2006 the shares were split 5 for 1 and the nominal value was reduced from 25p per share to 5p per share.
Potential issues of ordinary shares
Options on 85,081 shares of 25p each were exercised during 2006.The number of shares subject to options, the periods in which they were
granted and the periods in which they may be exercised are given below.
Exercise Exercise 2006 2005
Year of grant price period Numbers Numbers
pence (5p Shares) (25p Shares)
1998 104.0 2001 - 2008 - 25,500
2001 124.0 2004 - 2011 - 33,456
2001 (executive scheme) 124.0 2004 - 2008 - 26,125
2006 MSP 5.0 2009 - 2016 902,300 -
902,300 85,081
22. SHARE PREMIUM
Group and Company
£m
At 1 January 2005 1.5
Arising on issue of new shares 1.1
At 1 January 2006 2.6
Arising on issue of new shares 1.7
As at 31 December 2006 4.3
23. CAPITAL REDEMPTION RESERVE
Group and Company
£m
At 1 January 2005 and 31 December 2006 14.6
Notes to the Financial Statements
for the year ended 31 December 2006 (continued) 66
Lookers plc Report & Financial Statements 2006
25. RETAINED EARNINGS
Group Company
£m £m
As at 1 January 2005 59.3 33.5
Net profit for the year 11.6 10.7
Dividends paid (4.6) (4.6)
Actuarial losses on defined benefit pension scheme (3.1) (3.1)
Deferred taxation on pension liability 0.9 0.9
As at 31 December 2005 64.1 37.4
Net profit for the year 14.6 4.5
Dividends paid (6.1) (6.1)
Actuarial gains on defined benefit scheme 5.1 5.1
Deferred taxation on pension liability (1.5) (1.5)
As at 31 December 2006 76.2 39.4
Group retained earnings include £17.3m (2005: £18.0m) of non-distributable reserves relating to properties which had been revalued
under UK GAAP , but treated as deemed cost under IFRS. The minority interests share of earnings is £7,000 (2005: £8,000).
26. STATEMENT OF CHANGES IN SHAREHOLDERS EQUITY
Capital
Share Share redemption Other Retained
Statement of changes in equity capital premium reserve reserve earnings Total
£m £m £m £m £m £m
Group
As at 1 January 2005 8.8 1.5 14.6 - 59.3 84.2
New shares issued 0.1 1.1 - - - 1.2
Profit for year - - - - 11.6 11.6
Dividends - - - - (4.6) (4.6)
Actuarial losses on defined benefit 
pension scheme (note 28) - - - - (3.1) (3.1) 
Deferred taxation on pension liability - - - - 0.9 0.9
As at 31 December 2005 8.9 2.6 14.6 - 64.1 90.2
New shares issued 0.1 1.7 - - - 1.8
Profit for year - - - - 14.6 14.6
Dividends - - - - (6.1) (6.1)
Actuarial gains on defined benefit 
pension scheme (note 28) - - - - 5.1 5.1 
Deferred taxation on pension liability - - - - (1.5) (1.5)
Shared based payments - - - 0.2 - 0.2
As at 31 December 2006 9.0 4.3 14.6 0.2 76.2 104.3
Included within the Group’s total equity are minority interests of £45,000 (2005: £38,000)
Notes to the Financial Statements
for the year ended 31 December 2006 (continued)
24. OTHER RESERVE 
Group and Company
£m
Share based payments 0.2
As at 31 December 2006 0.2 67
Lookers plc Report & Financial Statements 2006
26. STATEMENT OF CHANGES IN SHAREHOLDERS EQUITY (continued)
Capital
Share Share redemption Other Retained
Statement of changes in equity capital premium reserve reserve earnings Total
£m £m £m £m £m £m
Company
As at 1 January 2005 8.8 1.5 14.6 - 33.5 58.4
New shares issued 0.1 1.1 - - - 1.2
Profit for year - - - - 10.7 10.7
Dividends - - - - (4.6) (4.6) 
Actuarial losses on defined benefit 
pension scheme (note 28) - - - - (3.1) (3.1)
Defered taxation on pension liability - - - - 0.9 0.9
As at 31 December 2005 8.9 2.6 14.6 - 37.4 63.5
New shares issued 0.1 1.7 - - - 1.8
Profit for year - - - - 4.5 4.5
Dividends - - - (6.1) (6.1)  
Actuarial gains on defined benefit 
pension scheme (note 28) - - - - 5.1 5.1
Defered taxation on pension liability - - - - (1.5) (1.5)
Share based payments - - - 0.2 - 0.2
As at 31 December 2006 9.0 4.3 14.6 0.2 39.4 67.5
27. ACQUISITIONS AND DISPOSALS
Acquisitions
On 1 March 2006 the Group acquired the business and assets of six outlets from HR Owen for a cash consideration of £5.4m.
A table detailing the assets and liabilities acquired at fair value is set out below.
Carrying value Provisional
pre-acquisition fair value
£m £m
Tangible fixed assets 1.6 1.6
Inventories 1.9 1.9
Payables (0.4) (0.4)
Net assets acquired 3.1 3.1
Goodwill 2.3
Consideration - satisfied by cash 5.4
On 1 September 2006 the Group acquired the business and assets of ten outlets from HR Owen and on 24 August 2006, one from 
Sytner, for a total cash consideration of £22.2m.
A table detailing the assets and liabilities acquired at fair value is set out below.
Carrying value Provisional
pre-acquisition fair value
£m £m
Tangible fixed assets 8.8 8.7
Inventories 8.6 8.1
Receivables 0.2 0.2
Payables (0.8) (0.8)
Net assets acquired 16.8 16.2
Goodwill 6.0
Consideration - satisfied by cash 22.2
Notes to the Financial Statements
for the year ended 31 December 2006 (continued)
pre-acquisition fair value
pre-acquisition fair value 68
Lookers plc Report & Financial Statements 2006
27. ACQUISITIONS AND DISPOSALS (continued)
Fair value adjustments contain some provisional amounts that will be finalised in the 2007 accounts.
It has not been possible to obtain reliable, comparable financial information for the pre-acquisition period of the acquired businesses and
consequently the annualised revenue and profit of the acquired businesses from the first day of the financial year has not been disclosed.
Disposals
On 28 February 2006 the Group disposed of the Nissan dealership at Mill Hill for a cash consideration of £1.5m.
Notes to the Financial Statements
for the year ended 31 December 2006 (continued)
28. PENSIONS
Pension Schemes
The Group’s pension plan “The Lookers Pension Plan” , which is a defined benefit scheme provides benefits based on final pensionable salary.
The Lookers Pension Plan, which is a funded scheme, is administered by William M. Mercer Limited. The scheme has been registered with
the Registrar of Pensions.The assets of the scheme are held separately from those of the Group, being held in separate funds by the Trustees
of the Lookers Pension Plan.
The Group has applied IAS 19 (Revised 2004) to this scheme and the following disclosures relate to this standard.The Group recognises any
actuarial gains and losses in each period in the Statement of Recognised Income and Expenses.
The pension charge for the scheme for 2006 was  £0.6m (2005: £1.5m).
A valuation update was made as at 31 December 2006 by a qualified independent actuary to take account of the IAS 19 requirements.
Scheme liabilities have been calculated using a consistent projected unit valuation method and compared to the scheme’s assets at their
31 December market value.
Based on actuarial advice and using the assumptions below in calculating the scheme’s liabilities, the total value of these liabilities under
IAS 19 are £74.8m at 31 December 2006 (2005: £76.5m).
The fair value of assets of the scheme and the expected rates of return on each class of assets are:
Market Market
Expected value Expected value
rate of return 2006 rate of return 2005
2006 £m 2005 £m
Equities 7.6% 44.1 7.1% 38.0
Bonds 4.6% 18.6 4.1% 17.1
Cash 5.0% 0.6 4.5% 2.2
Total fair value of assets 63.3 57.3
The overall net deficit between the assets of the Group’s defined benefit scheme and the actuarial liabilities of the scheme which has been
recognised on the balance sheet are as follows:
2006 2005 2004
£m £m £m
Fair value of scheme assets 63.3 57.3 47.4
Actuarial value of scheme liabilities (74.8) (76.5) (65.4)
Deficit in the scheme (11.5) (19.2) (18.0)
Related deferred tax asset (note 20) 3.4 5.7 5.4
Net pension liability (8.1) (13.5) (12.6)
Experience adjustments in plan liabilities - (1.8) -
Experience adjustments in plan assets 3 5.2                      1.9 69
Lookers plc Report & Financial Statements 2006
28. PENSIONS (continued)
The amounts recognised in the Income Statements are as follows:
2006 2005
£m £m
Current service cost 1.0 0.9
Total included in administrative expenses 1.0 0.9
Interest on obligation 3.7 3.6
Expected return on scheme assets (3.5) (3.0)
Total included in finance costs (note 2) 0.2 0.6
Net gains on curtailments and settlements (0.6) -
Total included in exceptional items (0.6) -
Total defined benefit expenses 0.6 1.5
Changes in the present value of the defined benefit obligation are as follows:
Opening defined benefit obligation 76.5 65.4
Service cost 1.0 0.9
Contributions by employees 0.6 0.7
Interest cost 3.7 3.6
Actuarial (gains)/losses (2.1) 1.8
Gains on curtailments and settlements (0.7) -
Benefits paid (4.2) (2.3)
Changes in assumptions - 6.4
Closing defined benefit obligation 74.8 76.5
Change in the fair value of scheme assets:
Opening fair value of scheme assets 57.3 47.3
Expected return 3.5 3.0
Actuarial gains 3.0 5.2
Contributions by employer 3.1 3.4
Contributions by employee 0.6 0.7
Benefits paid (4.2) (2.3)
Closing fair value of scheme assets 63.3 57.3
The actual return on scheme assets was £6.5m (2005: £8.2m). None of the scheme’s assets was invested in Lookers plc or property occupied
by Lookers plc. In addition to the 12.6% of pensionable payroll to fund accruing pensions, the Company contributed an additional £2.1m in
2006. The Group expects to maintain a similar level of pension contributions in 2007.
2006 2005
£m £m
Total amount of actuarial gains/(losses) recognised in the Statement 
of Recognised Income and Expense in the year 5.1 (3.1)
Cumulative amount of actuarial losses recognised in the  
Statement of Recognised Income and Expense at year end (2.6) (7.7)
The major categories of scheme assets as a percentage of total 
scheme assets are as follows:
Equities 69.6% 66.3%
Bonds 29.4% 29.8%
Cash 1.0% 3.9%
Notes to the Financial Statements
for the year ended 31 December 2006 (continued) 70
Lookers plc Report & Financial Statements 2006
Notes to the Financial Statements
for the year ended 31 December 2006 (continued)
28. PENSIONS (continued)
Principal actuarial assumptions at the balance sheet date (expressed as weighted averages):
2006 2005
Discount rate 5.30% 5.00%
Expected return on assets 6.65% 6.13%
Future salary increases 3.45% 3.30%
Future pension increases 2.50% 2.50%
Life expectancy at age 65 for:
current pensioners - males 84.0 84.0
current pensioners - females 87.0 87.0
future pensioners - males 84.0 84.0
future pensioners - females 87.0 87.0
Future pension increases were changed from Limited Price Indexation (“LPI”) with a maximum of 5% to LPI with a maximum of 2.5% during
2005.
Where investments are held in bonds and cash, the expected long-term rate of return is taken to be the yields generally prevailing on such
assets at the balance sheet date. A higher rate of return is expected on equity investments, which is based more on realistic future
expectations than on the returns that have been available historically. The overall expected long-term rate of return on assets is then the
average of these rates taking into account the underlying asset portfolio of the pension plan.
Amounts for the current and previous period are as follows: £m £m
Defined benefit obligation 74.8 76.5
Scheme assets (63.3) (57.3)
Deficit 11.5 19.2
Experience losses on plan liabilities - (1.8)
Experience gains on plan assets 3.0 5.2
The Group and Company provides pension arrangements for certain Directors under defined contribution schemes. The Group has recently
introduced a defined contribution Stakeholder Pension Scheme for employees. The Income Statement account charge for the year in
respect of defined contribution schemes was £0.5m (2005: £0.5m).
29. RELATED PARTY TRANSACTIONS
Until 25 April 2006 Hamilton Finance Limited (a wholly owned subsidiary of General Electric Capital Corporation) owned 24.5% of the issued
ordinary share capital of the Company. GE Capital and its subsidiaries are therefore considered to be related parties until that date in
accordance with the definition included in IAS 24. During the period to 25 April 2006 the Group entered into a number of transactions with
the related party, details of which are summarised below.
General Electric Capital Corporation and its subsidiary companies have been given the opportunity to provide, on normal competitive
terms, advances on hire purchase to customers of the Group. This agreement expired on 31 December 2006. During the period to 25 April
2006, the Group received £0.9m (2005: £5.2m) commission income under this agreement.
Key management compensation is included in note 7.
30. FINANCIAL ASSETS AND LIABILITIES
The objectives, policies and strategies for holding or issuing financial instruments adopted by the Board are given in the Directors’ Report.
Details regarding the Group’s derivative financial instruments at 31 December 2006 and 2005 are given in note 18. The Group’s other
financial assets and liabilities are detailed below.
Fair values
The fair values of the Group’s trade receivables, cash and cash equivalents, trade payables (which include liabilities in respect of 
interest-bearing consignment stock), short-term provisions and loans and overdrafts with a maturity of less than one year are assumed to
approximate to their book value. The fair value of the Group’s non-current provision is not materially different from its fair value.
The Group’s other non-current financial liabilities are all subject to floating interest rates and so their fair value also approximates to
book value. 71
Lookers plc Report & Financial Statements 2006
30. FINANCIAL ASSETS AND LIABILITIES (continued)
Maturity of financial liabilities
The maturity profile of the carrying amount of the Group’s non-current financial liabilities at 31 December 2006 and 2005 are given in note 17.
Borrowing facilities
The Group has the following undrawn committed borrowing facilities available at 31 December 2006 and 2005 which expire:
2006 2005
£m £m
In less than one year 10.7 59.7
Within two to five years 116.2 -
The above facilities represent loans and overdrafts, for which the facilities have been confirmed.
The minimum lease payments under finance lease are given in note 17.The present value of the Group’s non-current finance lease liabilities
is not materially different from their book value.
Interest rate profile
Financial assets comprise cash of £2.9m (2005: £2.4m).
An analysis of the Group’s loans and overdrafts between fixed and floating rates is given below.
2006 2005
Financial Liabilities Financial Liabilities
£m £m
Fixed Rate 0.2 -
Floating Rate 84.6 70.6
Total 84.8 70.6
Interest rates on the Group’s floating rate liabilities are based on the London Interbank rate. At 31 December 2006 all of the Group’s bank
loans and overdrafts are potentially exposed to re-pricing within 12 months of the balance sheet date (2005: 12 months).
Foreign currencies
The majority of the Group’s activities are transacted in sterling although some of its purchases are made in Euros and US Dollars.The Group
manages the foreign currency risk associated with these foreign currency purchases through the use of forward contracts as a commercial
hedge. The Group has not sought hedge accounting under IAS 39 in respect of these contracts.
31. OPERATING LEASE COMMITMENTS - MINIMUM LEASE PAYMENTS
2006 2005
Property Plant & equipment Property Plant & equipment
Group £m £m £m £m
Commitments under non-cancellable
operating leases expiring:
Within one year 2.9 0.4 4.1 0.6
Within two to five years 11.5 1.4 11.8 1.0
After five years 37.0 - 22.0 0.1
51.4 1.8 37.9 1.7
32. CONTINGENT GAIN
Additional amounts may be receivable from HM Revenue & Customs in respect of overpayments of VAT in previous years.These will not be
recognised until they have been agreed.
Notes to the Financial Statements
for the year ended 31 December 2006 (continued) 72
Lookers plc Report & Financial Statements 2006
FRANCHISES
Prestige Franchises
Aston Martin
Belfast
Bentley
Belfast
Chrysler, Jeep, Dodge
Belfast
Hatfield
Liverpool
Romford
Ferrari
Belfast
Honda
Derby
Liverpool
Nottingham
Southport
Warrington
Jaguar
Belfast
Bury St. Edmunds
Glasgow (2 outlets)
Ipswich
Motherwell
Portadown
Land Rover
Belfast
Bishop’s Stortford
Bury St. Edmunds
Chelmsford
Colchester
Glasgow 
Hadleigh
London (2 outlets) 
Motherwell
Lexus
Belfast
Brighton
Hadleigh
Hatfield
Maserati
Belfast
Mercedes-Benz
Brighton
Eastbourne
Gatwick
Redhill
Saab
Chester 
Liverpool
Warrington
Smart
Brighton
Volvo
Chelmsford
Colchester
Glasgow
Hadleigh
Hamilton
Ipswich
Volume Franchises
Chevrolet
Heswall
Warrington
Yardley
Citroën
Belfast
Hyundai
Belfast
Motherwell
Kia
Belfast
Macclesfield
Stockport
Mazda
Motherwell
Nissan
Belfast
Newtownabbey
Peugeot
Belfast
Knock
Renault
Altrincham
Bangor
Belfast
Chelmsford
Chester
Colchester
Lisburn
Macclesfield
Newtownabbey
Newtownards
Northwich
Stockport
Seat
Stockport
Toyota
Belfast
Chelmsford
Dundonald
Newtownabbey
Rayleigh
Romford
Vauxhall
Belfast
Birkenhead
Birmingham
Blackburn
Chester
Dundonald
Ellesmere Port
Heswall
Lisburn
Liverpool
Portadown
Selly Oak
Speke 
St. Helens
Wallasey
Warrington
Widnes
Yardley
Volkswagen
Blackburn
Burnley
Darlington
Middlesbrough
Northallerton 
Motorcycles
BMW
Newtownabbey
Yamaha
Belfast
Tyres
Belfast - Boucher Road
Belfast - Sydenham Road
Coleraine
Dundonald
Omagh
Portadown
USED CAR SUPERMARKETS
Bristol
Burton-on-Trent
Witham
PARTS DISTRIBUTION
FPS 
Barking
Birmingham
Bristol 
Cardiff
Charlton
Colchester
Glasgow
Leeds
Leicester
Liverpool
Luton
Maidstone
Manchester
Newcastle
Preston
Reading
Sheffield
Southampton
Staples Corner
Apec
Bristol
AGRICULTURAL DIVISION
Darley Dale
Tuxford
Major Subsidiary Companies
DSM Autos Limited
Bolling Investments Limited
Charles Hurst Limited
Charles Hurst Motors Limited
Lookers Motor Group Limited
Lookers Southern Limited
Lookers Birmingham Limited
MB South Limited
FPS Distribution Limited
Apec Limited
Website: www.lookers.co.uk
Trading Outlets and Interests in Major Subsidiary Companies
as at 31 December 2006 73
Lookers plc Report & Financial Statements 2006
Five Year Record
for the year ended 31 December 2006
Year ended Year ended Year ended Year ended Year ended
31 December 31 December 31 December 31 December 31 December
2002 2003 2004 2005 2006
£m £m £m £m £m
Turnover 790.4 961.4 1,093.8 1,231.6 1,426.7
Profit before tax,
amortisation, impairment,
exceptional items and debt issue costs 10.6 13.1 14.1 18.0 26.4
Amortisation/impairment (0.7)(0.9)(0.2)(0.9) (0.8) 
Net exceptional items 1.9 1.8 12.5 (0.7) (4.1)
Debt issue costs - - - - (0.1) 
Profit before taxation 11.8 14.0 26.4 16.4 21.4 
Taxation (3.0) (3.6) (7.1) (4.8) (6.8) 
Profit attributable to shareholders 8.8 10.4 19.3 11.6 14.6
Non-equity dividend per share 8.0p - - - -
Equity dividend per share* 2.00p 2.20p 2.42p 3.05p 3.50p
Basic earnings per ordinary share 4.52p 6.02p 11.00p 6.53p 8.13p
Adjusted earnings per ordinary share 5.17p 5.24p 6.16p 7.54p 10.63p
As at Period end
Shareholders’ interests
Share capital 22.5 8.7 8.8 8.9 9.0 
Reserves
- non-distributable 8.1 23.1 34.4 35.2 36.4
- distributable 46.3 38.7 41.0 46.1 58.9
Net assets 76.9 70.5 84.2 90.2 104.3
Figures for 2004 differ from those originally reported due to amendment following the introduction of International Financial Reporting
Standards. Those figures reported prior to 2004 are under UK GAAP .
*Dividends per share are based on interim dividend paid and final dividend declared for the year. 74
Lookers plc Report & Financial Statements 2006
Notice of Meeting
Incorporated in England under the Companies Act 1985 Registered No. 111876
NOTICE IS HEREBY GIVEN that the ninety-seventh Annual General Meeting of Lookers plc (the “Company”) will be held at the Captains
Lounge, Manchester United Football Club, Sir Matt Busby Way, Old Trafford, Manchester, M16 0RA on Friday 18 May 2007 at 12 noon for the
following purposes:
1. To approve and adopt the financial statements for the year ended 31 December 2006 together with
the reports thereon of the Directors and Auditors (Resolution 1).
2. To receive and approve the Directors’ Remuneration Report for the year ended 31 December 2006 (Resolution 2).
3. To declare a final dividend of 2.2p per share on the ordinary share capital of the Company (Resolution 3).
4. To re-elect P . M. White as a Director who retires in accordance with the Articles of Association (Resolution 4).
5. To re-elect H. K. Surgenor as a Director who retires in accordance with the Articles of Association (Resolution 5).
6. To re-elect D. V. Dyson as a Director who retires in accordance with the Articles of Association (Resolution 6).
7. To re-elect B. Schumacker as a Director who retires in accordance with the Articles of Association (Resolution 7).
8. To re-appoint Deloitte & Touche LLP as Auditors (Resolution 8).
9. To authorise the Directors to fix the remuneration of the Auditors (Resolution 9).
10. To authorise the Directors to generally and unconditionally in accordance with Section 80 of the Companies Act 1985 to exercise all the
powers of the Company to allot relevant securities (within the meaning of the said Section 80) up to an aggregate nominal amount of
£3,003,255 (60,065,010 shares) during the period commencing on the date of the passing of this Resolution and expiring on the date
of the next Annual General Meeting of the Company but so that this authority shall allow the Company to make, before the expiry of
this authority offers or agreements which would or might require relevant securities to be allotted after such expiry and,
notwithstanding such expiry, the Directors may allot relevant securities in pursuance of such offers or agreements (Resolution 10).
11. A Special Resolution, to empower the Directors to allot equity securities (as defined for the purposes of Section 95 of the Companies
Act 1985 (the “Act”)) pursuant to Section 80 of the Act, as if Section 89(1) of the Act did not apply to any such allotment provided that
this power shall be limited:
(i) to the allotment of equity securities in connection with any rights issue in favour of holders of ordinary shares in the capital of the
Company on the register of members at such record date or dates as the Directors may determine for the purposes of the issue where
the equity securities respectively attributable to the interests of all such shareholders are proportionate (as nearly as may be) to the
respective number of ordinary shares in the capital of the Company held by the ordinary shareholders, and for the avoidance of doubt,
the Directors may make such exclusions or other arrangements as the Directors may deem necessary or expedient to deal with
fractional entitlements or legal or practical problems under the laws of overseas jurisdictions or the requirements of any regulatory
body; and
(ii) to the allotment (otherwise than pursuant to sub-paragraph (i) above) of equity securities having an aggregate maximum nominal
amount of £450,487 (9,009,751 shares) in the case of ordinary shares.
and this power shall expire on the date of the next Annual General Meeting of the Company after the passing of this Resolution save
that the Company may before such expiry make an offer or agreement which would or might require equity securities to be allotted
after such expiry and the Directors may allot equity securities in pursuance of such offer or agreement as if the power conferred hereby
had not expired (Resolution 11). 75
Lookers plc Report & Financial Statements 2006
12. As a Special Resolution, to authorise the Company both generally and unconditionally to make market purchases (within the meaning
of Section 163 of the Companies Act 1985) of ordinary shares of 5p each in the capital of the Company provided that:
(i) the aggregate maximum Nominal Value of ordinary shares hereby authorised to be purchased is £900,975 (18,019,503 shares);
(ii) the minimum price which may be paid for ordinary shares is 5p per ordinary share;
(iii) the maximum price which may be paid for ordinary shares is an amount equal to 105% of the average of the middle market
quotations for an ordinary share as derived from the London Stock Exchange Daily Official List for the five business days immediately
preceding the day on which the ordinary share is purchased;
(iv) the authority hereby conveyed shall expire at the conclusion of the next Annual General Meeting of the Company, unless such
authority is renewed prior to such time; and
(v) the Company may make a contract to purchase ordinary shares under the authority hereby conveyed prior to the expiry of such
authority which will or may be executed wholly or partly after the expiry of such authority, and may make a purchase of ordinary shares
in pursuance of any such contract (Resolution 12).
Registered Office: By order of the Board
776 Chester Road S. R. MacDonald, Secretary
Stretford
Manchester M32 0QH 12 March 2007
Notes:
1. The Company specifies (pursuant to Regulation 41 of the Uncertificated Securities Regulations 2001) that ordinary shareholders
registered in the Company’s register as at 6.00pm on 16 May 2007, are entitled to attend and speak at the Meeting and to vote on all
resolutions proposed at the Meeting.We will disregard any entries on the register after this time in determining who is entitled to attend
and vote.
2. A member entitled to attend, speak and vote at the Meeting is entitled to appoint a proxy to attend, speak and, upon a poll, vote in
his/her stead. A member may nominate a proxy of his/her choice who need not be a member of the Company.
3. Appointment of a proxy will not preclude a member from, attending, speaking and voting at the Meeting should he/she subsequently
wish to do so.
4. A Form of Proxy is enclosed for use by shareholders in respect of Resolutions 1 to 12.
5. A Form of Proxy must be lodged with the Company’s Registrars, Proxy Processing Centre, Telford Road, Bicester, OX26 4LD, not less than
48 hours before the time appointed for the holding of the Annual General Meeting or any adjourned Meeting.
The following information is available for inspection on any weekday (except Saturday) during usual business hours at the Registered
Office of the Company and will, on the date of the Annual General Meeting be available for inspection from 11.45am until the
conclusion of that Meeting:
(a) A statement of transactions of Directors (and their family interests) in the capital of the Company.
(b) The Memorandum and Articles of Association of the Company.
Notice of Meeting
(continued) 76
Lookers plc Report & Financial Statements 2006
Dividend Timetable
Ordinary: Interim - end of November
Final - end of May
The Annual General Meeting is normally
held in mid-May each year.
Share Quotes
Share prices of the ordinary shares are
shown in the Financial Times and also
appear in several other newspapers. The
ordinary share price is also shown daily on
Teletext (BBC 1 page 227 and Channel 4,
page 524).
Shareholder Benefits
We operate a scheme which provides all
registered private shareholders holding a
minimum of 5,000 ordinary shares with an
additional £100 discount off the price of
any new motor vehicle purchased from any
of the Group’s garages. The private
registered shareholder negotiates his/her
purchase of the new car in the normal way
and the £100 is an additional discount
obtained from the Company Secretary.
Electronic Communication
Capita Registrars provide a share portal
service, which allows shareholders to
access a variety of services on-line,
including viewing shareholdings, buying
and selling shares on-line, registering
change of address details and bank
mandates to have dividends paid directly
into your bank account.
In addition, shareholders can register an
email address and elect to receive future
company report and accounts in electronic
form.
Any shareholder who wishes to register with
Capita to take advantage of this service
should visit 
www.capitaregistrars.com/shareholders
Principal Bankers
Bank of Ireland
Barclays Bank PLC
HSBC Bank plc
Lloyds TSB
National Australia Bank
The Royal Bank of Scotland plc
Registrars and Transfer Office
Capita Registrars
Woodsome Park,
Fenay Bridge,
Huddersfield HD8 0LA
Auditors
Deloitte & Touche LLP
P .O. Box 500,
2 Hardman Street,
Manchester M60 2AT
Solicitors
Addleshaw Goddard LLP
100 Barbirolli Square,
Manchester M2 3AB
Stockbrokers
Numis Securities Limited
The London Stock Exchange Building,
10 Paternoster Square,
London EC4M 7LT
Financial Advisors
Rothschilds NM
82 King Street,
Manchester M2 4WQ
Shareholders’
Information
Bankers And 
Professional Advisers