annual report 
& accounts 31 DECEMBER 2009 Registered Office: 776 Chester Road, Stretford, Manchester, M32 0QH.  Registered Number 111876
LOOKERS MOTOR GROUP
CHARLES HURST
TAGGARTS
FPS AUTOMOTIVE PARTS DISTRIBUTION
APEC BRAKING
BTN TURBO
BRISTOL TRADE CENTRE
IAN SHIPTON CARS
PLATTS HARRIS
LOOKERS LEASING
growth AND 
fi NANci Al st Ability  
through a single 
group culture 1
Lookers plc Annual Report & Accounts 2009
financial calendar
9 March 2010
Announcement of results for the full year
27 May 2010
Annual General Meeting
2 financial Highlights
5 chairman’s review 
8 chief executive’s review
18  finance director’s review
20  Board of directors
23  directors’ report
28  Statements on corporate Governance
32  corporate Social responsibility review
33  directors’ remuneration report
37  directors’ responsibilities
38  independent auditors’ report
40  Principal accounting Policies
45  income Statements
45  consolidated Statement of
comprehensive income
46  Balance Sheets
47  consolidated Statement                          
of changes in equity
48  cash flow Statements
49  notes to the financial Statements
75  Trading Outlets and interests in          
Major Subsidiary companies
76  five Year record
77 notice of Meeting
80 Shareholders, Bankers and    
Professional advisors
l o o k e r s p l c A n n u a l R e p o r t & A c c o u n t s 2 0 0 9
Contents
1 2
Lookers plc Annual Report & Accounts 2009
“we Have 
delivered 
a rec Ord 
Tradin G 
Perf Or Mance 
f Or THe 
c OMPan Y in 
2009 de SPiTe 
difficul T 
Marke T 
c Ondi TiOnS”
pete R jones, 
chief executive
l o o k e r s p l c A n n u a l R e p o r t & A c c o u n t s 2 0 0 9
Financial Highlights
2 3
Lookers plc Annual Report & Accounts 2009
2005 2006 2007 2008 2009
*adjusted earnings Per Share 
(pence)
adjusted earnings 
Per Share
7.32p
*
up 57%
revenue
£1.75 billion
up 4.2%
revenue
(Millions of pounds)
2009
2008
2007
2006
2005      
adjusted Profit 
from Operations
£45.1m
*
up 33%
2009
2008
2007
2006
2005
*adjusted Profit from Operations 
(Millions of pounds)
*adjusted Profit Before Tax 
(Millions of pounds)
£28.3m
*
up 102%
adjusted Profit 
Before Tax
2009
2008
2007
2006
2005
*Adjusted before amortisation of intangible assets, impairment of goodwill, exceptional items and debt issue costs.
l o o k e r s p l c A n n u a l R e p o r t & A c c o u n t s 2 0 0 9
Financial Highlights
3 4
Lookers plc Annual Report & Accounts 2009
“we c OnTinue TO Benefi T fr OM Our 
diver Sified BuSine SS STruc Ture
wi TH STr OnG Perf Or Mance S fr OM BOTH 
THe MOTOr divi SiOn and Our Marke T 
leadin G inde Penden T Par TS divi SiOn.”
phil white, ch AiRMAn
 Working together
to achieve more!
l o o k e r s p l c A n n u a l R e p o r t & A c c o u n t s 2 0 0 9
2009 Review
4 5
Lookers plc Annual Report & Accounts 2009
I 
am delighted to report that l ookers has delivered a record trading performance 
for the year, ahead of market expectations, with group like for like new car sales 
(defined as excluding businesses closed in 2008) outperforming the uk new car 
market. The results should be considered against the background of the difficult trading 
conditions in the uk motor retail market which started in 2008 and continued in 2009, as 
well as difficult general economic conditions across the uk . The group’s performance, 
therefore, represents an impressive achievement against this background and is 
encouraging for the future and in particular the remainder of 2010.
As i reported in our last annual report, the second half of 2008 saw an unprecedented decline 
in new car sales volumes and used car values which resulted in management taking decisive 
action at the time to restructure the Motor Division with the closure of 21 underperforming 
franchised operations. t his action significantly reduced overheads, strengthened the business 
and placed it in a stronger position to trade through the economic downturn and to emerge 
from it as a stronger and more efficient business. we continue to benefit from our diversified 
business structure with strong performances from both the motor division and our market 
leading independent parts division.
t he u K new car market reduced by 6% in 2009 compared to the previous year with total 
registrations of just under 2 million. t his was the lowest volume since 1995, despite the 
introduction of the Government scrappage scheme which added 284,000 registrations. Group 
like for like new car sales increased by 13% to 61,372 units as we continue to increase our 
market share. u sed car values recovered strongly during the year and like for like sales of used 
cars increased by 6% with margins also improving. Dealership aftersales delivered strong 
results and benefited from a combination of the consolidation in dealership representation in 
the u K, a trend which we anticipate may continue during 2010, and the managed restructuring 
of market areas and franchise representation within our dealership portfolio. Both these factors 
have increased aftersales revenue and profitability per site, further strengthening our share of 
the aftersales market. 
o ur independent parts division, which provides a significant contribution to group earnings, 
had another excellent year and produced record levels of operating profit in all of the three 
businesses of this division. t he parts division is of particular importance to the group as it 
is not subject to cyclical fluctuations in the new car market. f urthermore, as the national 
market leader in this sector of the market, we are in a strong position to exploit future growth 
opportunities through the introduction of new products and services.
w hilst economic conditions remain uncertain, our strong performance in 2009 demonstrates 
the resilience of the group’s businesses which are underpinned by profits generated by 
dealership aftersales and the independent parts division. t his leaves us well positioned to 
continue to trade successfully by outperforming the new car market and developing further 
opportunities from all areas of the business.
financial HiGHli GHTS
t urnover was a similar level to last year at £1.75 billion.  *Adjusted operating profit before 
amortisation, impairment and exceptional items increased to £45.1 million from £33.9 million 
last year.  total exceptional items amounted to £14.2 million, primarily in relation to refinancing 
and restructuring costs. f ollowing significant reductions in working capital, interest costs 
reduced by 15.6% to £16.8 million. *Adjusted profit before tax was £28.3 million compared 
with an *adjusted profit of £14.0 million last year.  *Adjusted earnings per share were 7.32p 
compared to 4.66p last year. n et cash inflow before exceptional items improved to £22.3 
million compared to £7.3 million in 2008. 
cHairMan’S 
Review
Phil White
l o o k e r s p l c A n n u a l R e p o r t & A c c o u n t s 2 0 0 9
2009 Review
5 6
Lookers plc Annual Report & Accounts 2009
Bank facili TieS
As reported in our 2008 Annual Report, on 29 May 2009 we 
agreed terms and conditions with our banking syndicate on new 
facilities of £210 million. w hilst the facilities provide a sound 
financial structure for the group in the medium term, they were 
considerably more expensive and onerous than the previous 
facilities, as a result of the conditions prevalent in the banking 
industry at that time. we therefore, considered alternative 
sources of capital to reduce the additional cost of these bank 
borrowings. o n 26 j une 2009, we announced a fully underwritten 
f irm placing and placing and o pen o ffer to raise gross proceeds 
of £80.7 million (£77.6 million net of expenses) which facilitated 
significant improvements to the terms under the amended 
banking facility agreement. t he fundraising has strengthened the 
group’s financial position, with the net proceeds being used to 
pay down debt and assist in securing more favourable terms on 
the group’s banking facilities, as well as providing flexibility for the 
group to pursue its future development strategy. t he fundraising 
received strong support from our existing shareholders and 
also provided the opportunity for several new institutional 
shareholders to participate in the share issue which received 
shareholder approval at the General Meeting held on 22 j uly 
2009.
dividend
A condition of the revised banking agreement is that the group 
will pay no dividends before 30 j une 2010. As a result, the group 
is therefore not in a position to pay a dividend for this financial 
year. h owever, it is the board’s intention to return to a progressive 
dividend policy in 2010, within the restrictions placed on the 
group by the terms of the amended banking facility agreement 
and subject to satisfactory trading results.
BOard c Han GeS 
As announced at the Annual General Meeting in j une 2009, 
Ken surgenor retired from his position as c hief executive on 30 
september 2009.  Ken has been with the group for nearly 25 
years and ceo for 8 years and we would like to thank him for his 
hard work and dedication during this time. i am pleased to say 
that Ken remains with the group running the c harles h urst group 
of businesses in n orthern ireland. o n 1 o ctober 2009 peter 
j ones, who was Managing Director of the Motor Division, was 
appointed to the position of Group c hief executive. peter has 
extensive experience of the motor sector and is well qualified to 
lead the company in the next phases of its development. o n 1 
March 2010, as part of a reorganisation of the board, Andy Bruce 
was appointed Managing Director of the Motor Division and 
Brian schumacker stood down from the board. i would like to 
thank Brian for his valuable contribution to the board over the last 
ten years. i am pleased to report that he will be staying with the 
group, although not on the board but in an important new role as 
o perations Director for business development, where he will lead 
the delivery of improved profitability across the group, particularly 
in dealership aftersales.
THe fu Ture
t he breadth of our operations gives the group resilience and 
the flexibility to adapt to changing market conditions to help 
protect profitability.  t he majority of gross profit is generated from 
aftersales and the independent parts division which represent 
60% of gross profit and are not subject to cyclical fluctuations in 
the new car market. 
t he group has been strengthened by the actions taken in the 
Motor Division to reduce costs and close loss making businesses 
and the strong results achieved in 2009 have benefited from 
this. h owever, we will continue to focus on areas where we 
can improve the performance of the group’s franchised outlets 
to bring further improvements in profitability. we continue to 
develop the independent parts division with the addition of new 
product lines, improved facilities and investment in systems, all 
of which will bring further increases in profitability. t he successful 
equity raising and negotiation of amended banking facilities 
have strengthened the group’s balance sheet, providing greater 
flexibility to ensure that we are well placed and focussed to take 
advantage of strategic growth opportunities that may arise.
t he new year has started well with current trading being ahead 
of both our budget and the prior year. we continue to outperform 
the new car market and trading in the Motor Division is ahead 
of both budget and prior year. t he independent parts division 
continues to perform well and is showing further progress. we 
are therefore confident that the company will emerge from the 
current downturn a stronger and more efficient business which is 
well placed to deliver future growth.
i would like to conclude by thanking all our people at l ookers for 
their hard work and dedication in an exceptionally challenging 
year without whom we would not have been able to deliver such 
an excellent result.
Phil white
c hairman
9 March 2010
2009 Review 7
Lookers plc Annual Report & Accounts 2009
“THe Bread TH Of Our OPera TiOnS 
Give S THe Gr OuP re Silience 
and THe flexi Bili TY TO ada PT TO 
c Han Gin G Marke T c Ondi TiOnS TO 
Hel P Pr OTec T Pr Ofi TaBili TY.” 
phil white, ch AiRMAn
2009 Review
l o o k e r s p l c A n n u a l R e p o r t & A c c o u n t s 2 0 0 9
7 8
Lookers plc Annual Report & Accounts 2009
T
he 2009 *underlying profit before tax of £28.3 million, up from £14 million in 2008, 
was a record result for the company and was delivered despite an economic 
backdrop that saw the lowest new car market since 1995, a declining used car 
market and a reducing 1 – 3 year aftersales vehicle parc.  
t he key factors in driving performance recovery throughout the business were:
 • strong used vehicle sales volumes and margin growth; 
 • new vehicles sales volume growth, which was 19% ahead of the market;
 • strong turnover and margin growth in our parts division and a strong 
  aftersales performance in the motor division; and
 • managed reductions within our business cost base.
t he strength of our underlying profit performance in difficult market circumstances gives us 
confidence that we can continue to grow the business in 2010, despite short-term market 
conditions remaining challenging. t he business is exceptionally well placed to take full 
advantage of improving economic conditions in the medium term.
OPera Tin G review
Motor division
o ur motor division consists of 122 franchise dealerships representing 
32 marques from 73 sites.  t he business generates revenue from 
the sale of new cars, the sale of used cars, vehicle servicing and 
repair, and the sale of franchise parts. in 2009 our motor division 
increased profit before tax to £25 million from £5 million in 2008.
Restructuring in late 2008 removed 21 underperforming franchise 
businesses, reduced headcount in ongoing businesses by 6% and 
reduced the working capital base. t hese actions have recalibrated 
the business so that it can be successful at a reduced level of 
market activity.
t he restructuring has radically improved the profile of our 
business, enhancing sales and aftersales throughputs per 
business. During 2009 we have made further changes 
which have strengthened activity levels per site with 
the addition of 8 incremental franchises within existing 
facilities.
cHief execuTive’S 
Review
Peter jones
2009 Review
l o o k e r s p l c A n n u a l R e p o r t & A c c o u n t s 2 0 0 9
8 9
Lookers plc Annual Report & Accounts 2009
“THe 2009 
*underl Yin G 
Pr Ofi T Bef Ore 
Tax Of £28.3 
Milli On, 
uP fr OM £14 
Milli On in 
2008, wa S 
a rec Ord 
re Sul T f Or 
THe c OMPan Y”
pete R jones, 
chief executive
l o o k e r s p l c A n n u a l R e p o r t & A c c o u n t s 2 0 0 9
2009 Review
9 10
Lookers plc Annual Report & Accounts 2009
new c ars
t he new car market fell 6% to just under 2 million cars, the lowest new car market 
since 1995, despite the market boost of 284 thousand sales stimulated by the 
government scrappage scheme.
Group new car sales of 61,372 cars increased by 13% compared to 2008 
levels and were 19% ahead of the u K market, improving our market share 
to 3.1% from 2.6% in 2008.  w ithin the new car market sub sectors, our 
share of the private retail sector is now 4.2%, our share of government 
scrappage sales is 2.6% and our share of the company car sales sector is 
2.5% (2008: 1.3%). 
Gross margins for new cars reduced to 8.1% (2008: 9.3%), primarily due 
to the effect of margin dilution from sales under the Government scrappage 
scheme, along with an increase in corporate sector sales.
“wiTHin THe new car Marke T SuB 
Sec TOr S, Our SHare Of THe Priva Te 
re Tail Sec TOr i S nOw 4.2%”
pete R jones, chief executive
l o o k e r s p l c A n n u a l R e p o r t & A c c o u n t s 2 0 0 9
2009 Review
10 11
Lookers plc Annual Report & Accounts 2009
chevrolet 3
citroën 4
fiat 2
ford 9
hyundai  2
Kia  3
Mazda  1
nissan 4
peugeot  4
Renault  10
seat 1
toyota 5
vauxhall 16
volkswagen 11
Proportion invested in  
volume brands
BMw 1
Yamaha 1
Proportion invested in  
Motorcycle brands
pRestiGe 45
voluMe 75
Moto Rc Ycles 2
Alfa Romeo 1
Aston Martin  1
Bentley  1
chrysler 1
Dodge  1
ferrari   1
honda  6
jaguar  4
jeep 1
land Rover  8
lexus   2
Maserati   1
Mercedes-Benz   8
saab  2
smart  4
volvo  3
Proportion invested in 
Prestige brands
Overview of
franchise breakdown
l o o k e r s p l c A n n u a l R e p o r t & A c c o u n t s 2 0 0 9
2009 Review
11 12
Lookers plc Annual Report & Accounts 2009
2009 Review
l o o k e r s p l c A n n u a l R e p o r t & A c c o u n t s 2 0 0 9
12 13
Lookers plc Annual Report & Accounts 2009
used c ars
t he total used car market in the u K declined by circa 6% in 
2009. Group sales of 42,378 vehicles were in contrast up by 6% 
on 2008 levels, well ahead of the market and we continue to gain 
market share. Gross margins improved from 8% in 2008 up to 
11% in 2009 and this performance was delivered from a much 
leaner stock base through improved stock turn.
t he used car market, which has annual sales of circa 7 million 
vehicles per annum, remains a huge area of opportunity for the 
group. t hrough improved sourcing and a broader stock mix on 
our forecourts, we expect to take advantage of the stable market 
conditions in the used car sector to enhance our volumes and 
make further improvements in gross margin.
aftersales
Despite a declining vehicle parc within the 1 – 3 year vehicle 
sector, the group improved like for like aftersales revenue by 4%, 
held gross margin levels at 43%, and improved operating profits 
by 6%. t his resulted in the further strengthening of dealership 
aftersales profitability and further improved our share of the 
aftermarket opportunity.
o ur continued aftersales growth has been underpinned by further 
improvements in our customer relationship marketing centre 
processes and the deployment of electronic health checks in 
all businesses. t his enables us to identify and optimise service 
and repair requirements on all vehicles visiting us for aftersales 
work, which combined with our determination to deliver excellent 
customer service, are key factors in strengthening and optimising 
customer retention.
Dealership representation continues to consolidate in the u K 
market and this has the effect of strengthening our franchise 
representation per site. t hese factors, combined with our focus 
on increasing the retention of aftersales customers with vehicles 
over three years old, gives us further confidence that we can 
continue to grow our share of the lucrative aftermarket business 
opportunity.
Motor division: further restructuring
During the second half of 2008, we restructured the motor 
division and this delivered significant cost savings during 2009. 
towards the end of 2009, the group took further actions in 
respect of the motor division central cost base, reviewing central 
marketing, group it and systems, which has reduced our central 
cost base by £1.8 million, the full benefit of which will be realised 
in 2010.  we have also improved buying terms with specific 
service providers which will deliver savings of £0.8 million in 
2010.
t he group is currently in final negotiations to add a further six 
franchises to current locations. t his will strengthen throughputs 
per site with minimal uplift to our fixed cost base, resulting in 
operational improvements and increased profitability.
As referred to in the c hairman’s review, in March 2010 we refined 
the management structure of the motor division with Andy Bruce 
being appointed Managing Director and Brian schumacker being 
appointed as o perations Director for Business Development. 
t his will further improve our focus on the franchise operations 
and provide additional impetus on delivering programmes to 
underpin future business growth.
2009 Review
13 14
Lookers plc Annual Report & Accounts 2009
“f PS, THe Onl Y 
na TiOnal 
di STri BuTOr 
Of quali TY 
Branded 
au TOMOTive 
Hard Par TS, 
delivered 
STr OnG 
re Sul TS” 
2009 Review
l o o k e r s p l c A n n u a l R e p o r t & A c c o u n t s 2 0 0 9
14 15
Lookers plc Annual Report & Accounts 2009
t he equity fund raising exercise undertaken earlier in the year 
has transformed the group’s balance sheet enabling us to take 
advantage of opportunistic acquisitions in 2010. we are actively 
progressing talks to add incremental brands to strengthen 
the group portfolio and to strengthen our representation with 
specific brands where we currently have limited representation in 
comparison to their share of the u K market.
Parts division
t he group’s independent parts division operates through three 
companies, each supplying hard parts to the aftermarket, the 
customer base being primarily motor factors who, in turn supply 
the independent repair sector.
t he total vehicle car parc in the u K market is now over 30 
million vehicles, with just over 6.5 million of these being in the 
conventionally, dealership dominated 1 to 3 year vehicle parc.  in 
contrast to the younger vehicle parc, the 4 year plus vehicle parc 
in the u K continues to grow and the outlook for our independent 
parts operations is good as each of the businesses continues to 
take an increased share of a growing market opportunity.
o ur independent parts division continues to go from strength 
to strength, achieving record results, with all three businesses 
producing record levels of operating profit. t his performance 
is even more impressive as it follows a record performance in 
2008. t urnover for the division increased by 18%, operating profit 
increased by 34% and profit before tax also increased by 34%, 
from £8.34 million to £11.16 million. t he business continues 
to benefit as the slower demand for new cars translates into a 
greater need by consumers for car repairs to their current vehicle 
as they choose to maintain rather than exchange that vehicle for 
a new vehicle.  
fps , the only national distributor of quality branded automotive 
hard parts delivered strong results with turnover increasing by 
17% and operating profit of £7.9 million representing an increase 
of 38%. t he business now operates from 19 regional depots 
supported by our n ational Distribution c entre in sheffield. 
two depots were relocated during the year to new, expanded 
premises which allowed the full range of products to be carried 
at more locations, including exhausts at all locations for the first 
time. Growth was also supported by the introduction of new 
product lines whilst efficiency benefits were achieved by an 
increase in electronic order capture and information exchange.
Apec, a market leader in the u K and irish markets for aftermarket 
braking components, also had a very successful year overcoming 
the pressures caused by the weakness in sterling to produce a 
record result. t urnover increased by 23% and operating profit 
increased by 9% to £1.9 million. A significant customer contract 
was renewed during the year and the company continues to 
develop hydraulic braking products. n ew marketing initiatives 
and the launch of a new website helped strengthen the 
company’s position as market leader in terms of product range 
and availability.
Btn , a leading supplier and provider of technical support 
and servicing of turbochargers also delivered an excellent 
performance in 2009. t urnover increased by 21% as the 
company continues to expand sales to motor factors and new 
specialist customers. A move to new premises during the year 
provides modern facilities to enhance technical and service 
support to customers and provide a basis for further growth in 
this expanding market.
2009 Review
15 16
Lookers plc Annual Report & Accounts 2009
OuTl OOk
Both the Motor Division and parts Division have made a good 
start to the year. we have continued to outperform the new car 
market and our used car performance continues to be strong. 
f urthermore we have a healthy new car order book for March and 
aftersales continue to perform well with the result that the Motor 
Division is ahead of both budget and prior year. Moreover the 
independent parts division is again showing further year on year 
progress and is in line with budget. we therefore expect the result 
for the first quarter to be ahead of both budget and last year.
w hilst economic conditions remain uncertain, our strong 
performance in 2009, our market leading parts division, together 
with the actions that have been successfully completed in the 
Motor Division to reduce costs, demonstrates the resilience 
of the group’s diversified business model and leaves us well 
positioned to continue to trade successfully.
we continue to focus on areas where we can improve the 
performance of the group’s franchised outlets including 
consolidation of existing sites and adding dual franchises 
where this is appropriate. we will also focus on targeted 
and selective acquisitions to further improve our franchise 
representation. we continue to invest in new marketing initiatives, 
including the adoption of the l ookers brand across all mainland 
car dealerships, together with a relaunch of our website and 
enhanced digital marketing. t he parts Division continues to 
benefit from the addition of new product lines and the slower 
demand for new cars continues to boost car repairs and demand 
for parts. 
t he successful equity fund raising in j uly has strengthened the 
group’s balance sheet providing greater flexibility to ensure that 
we are well placed and focussed to take advantage of strategic 
growth opportunities that may arise and we are confident that 
the company will emerge from the current downturn a stronger 
and more efficient business which is well placed to deliver future 
growth.
Peter Jones
c hief executive
9 March 2010
2009 Review 17
Lookers plc Annual Report & Accounts 2009
2009 Review
l o o k e r s p l c A n n u a l R e p o r t & A c c o u n t s 2 0 0 9
17 18
Lookers plc Annual Report & Accounts 2009
D
espite the difficult trading conditions in the motor retail sector, on a like for like 
basis turnover increased by 4.2% from £1.68 billion last year, with positive growth 
in all sectors of the business. Overall turnover remained at a similar level to last 
year at £1.75 billion compared to £1.78 billion the previous year. *adjusted profit from 
operations increased by 33.0% to £45.1 million, an increase of £11.2 million compared to 
the prior year of £33.9 million. 
f ollowing a significant reduction in working capital, particularly in stocks of new and used cars, 
total interest costs reduced by 15.6% to £16.8 million compared to £19.9 million in 2008, with 
operational interest charges, excluding interest on pension scheme liabilities, reduced by 27% 
from £19.8 million to £14.5 million. interest on group borrowings is based initially on floating 
interest rates supplemented with interest rate hedges. A significant element of the term loan 
was covered by interest rate hedges during the year, as described in more detail in the notes 
to the financial statements. t he proportion of long-term debt covered by hedging instruments 
reduced by £48 million in o ctober 2009 when one of the hedges expired, reducing hedging 
coverage to approximately 66% of the term loan. h owever, as the hedges were established 
in 2007 when interest rates were significantly higher than current levels, they have the effect of 
increasing the interest charge so that we do not get the full benefit of the low base rate which is 
currently applicable in the u K.
*Adjusted profit before tax, amortisation, exceptional items and debt issue costs for the year 
increased by 102% to £28.3 million, a record result for the company and an improvement 
of £14.3 million compared to the previous year of £14.0 million. profit before tax and after 
exceptional items was £11.5 million compared to a loss before tax in the previous year of £14.9 
million. t his resulted in adjusted earnings per share* of 7.32p compared to 4.66p in the prior 
year, an increase of 57% and basic earnings per share of 2.79p compared to a loss of 7.68p in 
the previous year. t he calculation of earnings per share has been affected by the equity raising, 
which is referred to in more detail below and which resulted in an increase in the weighted 
average number of shares in issue of 37.5%. 
n et exceptional items amounted to £14.2 million compared to £20.0 million in 2008. Refinancing 
costs were £6.6 million which relates to the new bank facilities. c osts in relation to closed 
dealerships represent £6.2 million, reorganisation costs were £0.8 million, and other exceptional 
items were £0.5 million. t he cash impact of exceptional items was a cash outflow of £12.5 
million.
Taxa TiOn
t he tax charge for the year of £3.5 million compares to a net tax charge of £1.1 million in the prior 
year and reflects a charge of 30% of profit before tax. t his is slightly higher than the standard 
rate of corporation tax as some of the exceptional costs are not allowable for tax.
ca SHfl Ow and ca PiTal ex Pendi Ture
c ash generated from operations for the year was £20.1million, although this increases to £32.6 
million after adjusting for exceptional items and debt issue costs incurred in the refinancing. 
working capital increased by £14.1 million with a reduction in stock of £56.2 million offsetting 
the repayment of stocking loans and other creditors of £52.0 million. h owever, an increase 
in debtors of £18.3 million due to higher levels of trading, was the principal reason for the 
increase in working capital. c apital expenditure was £7.2 million compared to £8.6 million 
the previous year and proceeds from the sale of properties were £2.5 million. t he majority of 
capital expenditure was on new or improved premises for the parts division or improvements 
to dealership properties.
finance direcTOr’S 
Review
robin gregson
“THe Gr OuP 
HaS Sufficien T 
facili TieS 
availa Ble 
TO fund i TS 
OPera TiOnS 
and all Ow 
f Or fu Ture 
ex Pan SiOn”
2009 Review
l o o k e r s p l c A n n u a l R e p o r t & A c c o u n t s 2 0 0 9
18 19
Lookers plc Annual Report & Accounts 2009
As referred to earlier, the group successfully raised £77.6 million 
from the proceeds of the share issue. t he proceeds were used to 
repay £65 million of bank loans with the balance of £12.6 million 
being applied against the revolving credit facility. n et cash inflow 
was £9.8 million, compared to a cash outflow of £12.7 million 
in 2008. Adjusting for exceptional items gives a cash inflow for 
the year of £22.3 million compared to £7.3 million in 2008. t his 
resulted in a reduction in net debt to £79.0 million compared to 
£149.5 million at the start of the year. 
SHare HOlder S fund S and financin G
As set out in the c hairman’s Review, the group renewed its 
banking facilities to provide total facilities of £210 million until 
30 April 2012 and raised £77.6 million net of expenses through 
the f irm placing and placing and o pen o ffer. £50 million of the 
proceeds was used to repay the high interest loan, which incurred 
interest at 10% above li Bo R, £15 million was used as a partial 
repayment of the term loan and £12.6 million was applied against 
the revolving credit facility. t his resulted in a significant reduction 
in the company’s gearing and also allowed revisions to be made 
to the banking agreement which were more favourable to the 
company, particularly in relation to interest charges. f ollowing 
these amendments to the banking facilities, the group has 
available bank facilities which consist of a revolving credit facility 
of £53 million and a term loan of £91 million. interest is charged 
on both loans at a margin of between 3% and 4% above li Bo R. 
t hese facilities are subject to quarterly covenant tests on interest 
cover, bank debt to eBit DA, total debt to eBit DA and debt service 
cash cover. t he covenant tests are set at levels that provide 
sufficient headroom and flexibility for the group until maturity of 
the facilities in April 2012.
At 31 December 2009 total facilities were £144 million of which £79 
million was being utilised. t hese facilities together with the group’s 
strong operational cash flow, indicate that the group has sufficient 
facilities available to fund its operations and allow for future 
expansion. At 31 December 2009 gearing was 49% compared 
to 180% at 31 December 2008 and net debt to eBit DA was 1.5 
compared to 3.4 last year. t he group’s underlying profitability and 
strong cash flow should result in further reductions in borrowing 
in the future and help ensure that the level of borrowing remains 
under control and is at a reasonable level in relation to net assets. 
f urther information on the going concern basis of preparation is 
included in note 1.
Pr OPer TY POr Tf Oli O
t he group has a policy of investing in freehold and long leasehold 
property as the preferred means of providing premises for the car 
dealerships, where possible. As a result we have a significant and 
valuable portfolio of freehold and long leasehold properties where 
the net book value at 31 December 2009 was £183.4 million 
compared to £186.2 million last year. o f this amount £9.2 million 
has been disclosed within current assets as assets held for sale. 
short leasehold properties had a value of £8.5 million (2008: £8.8 
million).
dividend S
f ollowing agreement of the new banking facilities the group is not 
in a position to pay a dividend for this financial year. h owever it is 
the board’s current intention to return to a progressive dividend 
policy in 2010 within the restrictions placed on the group by the 
terms of the amended banking facility agreement and subject to 
satisfactory trading results.
Pen SiOn defici T
t he group operates two defined benefit pension schemes both 
of which are closed to entry for new members. w hilst there has 
been a recovery in the value of pension scheme assets during the 
year, the underlying assumptions used to calculate liabilities of the 
schemes have resulted in an increase in total liabilities compared 
to the previous year. t he effect of these factors is that the pension 
deficit for both schemes has increased by £5.6 million, after 
deferred tax, so that the total deficit is £25.6 million (2008: £20.0 
million). t he assessment of valuation is based on several key 
assumptions prescribed by accounting standards, where relatively 
small changes in the bases of valuation can have a significant 
effect on the calculated deficit. t he group has very little control 
over the assumptions used and their impact on the valuation, 
hence the movement in the calculated deficit can be subject to 
high levels of volatility which are outside of our control. t he board 
continues to look at its options to reduce both the annual cost 
of operating both schemes and what actions can be taken to 
reduce the deficit on the schemes, thereby reducing exposure to 
movements in these liabilities and reducing the deficit over the 
medium and longer term. 
vaT
t he group has previously submitted a number of claims with h M 
Revenue & c ustoms (‘h MRc ’) in respect of potential overpayments 
of vAt relating to prior years. if the group is successful in its 
negotiations with h MRc , then there is the potential for significant 
repayments to be received by the group. t he nature of the process 
for negotiating these claims with h MRc can take a considerable 
time so the timing of any potential receipt is uncertain and no 
benefit for any potential repayment has been included in the 
accounts and no income will be included until the claims have 
been agreed with h MRc .
r obin Gregson
f inance director
9 March 2010
2009 Review
l o o k e r s p l c A n n u a l R e p o r t & A c c o u n t s 2 0 0 9
19 20
Lookers plc Annual Report & Accounts 2009
execuTive
diRectoRs
1. PeTer JOneS: chief executive
Aged 53. joined the Group and appointed 
to the Board in May 2008 and appointed 
as Managing Director of the Motor Division 
in january 2009. he became Group chief 
executive on 1 october 2009. 
2. rOBin GreGSOn: finance Director
Aged 49. c hartered Accountant. j oined 
the Group in May 2009. previously Group 
f inance Director of c ardpoint plc and 
c D Bramall plc, whom he joined in 1996 
following 15 years with Deloitte.
3. andrew Bruce: Managing Director, 
Motor Division 
Aged 44. joined the Group in 2000 and 
appointed to the Board in 2002. 
formerly uK sales Director for land 
Rover, he was appointed to his current 
position in March 2010 following a strategic 
restructuring of the company’s senior 
management and has full accountability for 
the Group’s Motor Division performance.
4. TerrY wainwriGHT: 
operations Director
Aged 62. 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 
unipart Group.
2
3
1
4
l o o k e r s p l c A n n u a l R e p o r t & A c c o u n t s 2 0 0 9
Board of Directors
20 21
Lookers plc Annual Report & Accounts 2009
nOn-execuTive
diRectoRs
5. PHil wHiTe: chairman ¥ ∆ 
Aged 60. Appointed in september 2006. 
chief executive of national express for 10 
years until 2007. he is also chairman of  
Kier Group plc and the unite Group plc.
6. TOnY BraMall 
Aged 74. Appointed in june 2006.   
chairman and Director of cD Bramall plc 
until february 2004.
7. JOHn BrOwn * † ¥ ∆  
Aged 65. Appointed in May 2005.   
chartered certified Accountant. currently 
non-executive chairman of norcros plc  
and AiM listed voller plc, he is also a  
non-executive Director of henry Boot 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.
8. Bill HOlMeS † ¥ ∆ Aged 57. Appointed in june 2008.  
previously managing partner of the leeds 
office of BDo stoy hayward, whom he 
joined in 2002 from Arthur Andersen     
where he had been a partner since 1988. 
prior to joining Arthur Anderson he qualified 
as an inspector of taxes with hM Revenue 
& customs.
6
8
5
7
  *s enior independent Director † Member of the Audit c ommittee ¥ Member of the Remuneration c ommittee 
∆ Member of the n omination c ommittee
Board of Directors 22
Lookers plc Annual Report & Accounts 2009
Financial 
Statements 2009 23
Lookers plc Annual Report & Accounts 2009
directors’ Report
t he Directors have pleasure in submitting their report which includes the s tatements on c orporate Governance and the audited 
financial statements for the year ended 31 December 2009.
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 4 to 19. t he main financial Kpis of the Group are revenue, profit before tax, earnings per share, gearing 
and cash flow from operations. t he additional information required to be disclosed in the enhanced Business Review is shown 
below.
 t he Group’s business activities, financial condition, results of operations or the c ompany’s share price could be affected by any 
or all of the following risks or uncertainties:
 
 Global economy
 the new and used car markets are influenced by general economic conditions, including changes in interest rates, fuel prices, 
indirect taxation, the cost and availability of credit and other factors which affect levels of consumer confidence. the demand 
for new cars is cyclical, which in some years will lead to reduced margins caused by oversupply. this could 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. 
the uK is currently experiencing problems caused by the global downturn.  Despite lower interest rates, the lack of available 
credit, together with a general feeling of uncertainty in the economy has resulted in a significant fall in new car registrations. 
however, we have seen an increase in activity in both used car sales and within the parts distribution businesses and the 
Group’s business has proved to be resilient against this background.
 Manufacturers’ financial Stability
 t he Group relies on its manufacturer partners for a significant proportion of its revenues and profits. t he failure of a manufacturer 
could have a significant impact on the short-term profitability of a retailer partner. t he Group has attempted to mitigate this risk 
by having trading relationships with a large number of manufacturers, so that the impact of any one manufacturer failing would 
be lessened. Due to global economic events, several manufacturers have come under severe financial pressure. h owever, it 
appears that there has been significant political will to support these manufacturers to prevent their demise because of the effect 
this would have on their local economies.
 liquidity and financing
 t he Group uses a number of methods to fund its day to day business.  t hese methods are (i) bank borrowings by way of committed 
borrowing facilities (Banking facilities of £144 million agreed with existing lenders, maturing 2012); (ii) from manufacturer and third 
party finance houses through uncommitted stocking facilities to fund the purchase of stock; and (iii) from suppliers by way of trade 
credit. A withdrawal of any of these financing facilities or a failure to renew them as they expire could lead to a significant reduction 
in the trading ability of the Group. h owever the share issue in 2009 has significantly strengthened the Group’s balance sheet and 
provided a substantial source of additional funding.
 exchange rates
 t he Group is affected by currency fluctuations to the extent that a large proportion of our manufacturer partners either source parts 
or manufacture vehicles overseas. t he appreciation of the euro against sterling has meant that most manufacturers have had to 
increase prices despite the current market conditions. in recent years, sterling had appreciated against most currencies, allowing 
imported vehicles to be priced more competitively. t he 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 u K and overseas, to limit the effect.
 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. t hese 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. t he 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 believes that the Group will minimise the impact of these, and any future changes to Block 
exemption rules.
 competitive nature of the Market
 t he motor vehicle distribution market is highly competitive and comprises a small number of large dealer networks, similar to 
l ookers, down to a large number of much smaller operators. in addition, the market includes internet-based dealers and private 
individuals. t he franchised businesses also compete in the aftersales market which comprises similar franchised businesses, 
supply and fit chains, and a large number of small independent garages and bodyshops.  24
Lookers plc Annual Report & Accounts 2009
directors’ Report
2.  enHanced BuSineSS review (continued)
 competitive nature of the Market (continued) 
 t he 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. t he 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.
 t he parts distribution business operates in a very competitive market place, dominated by a few large players. t he 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.
 Government legislation
 in addition to Block exemption rules noted above, changes to the Government’s transport policy could adversely affect the 
Group’s profitability if, as a result, customers choose to use alternative forms of transport.
 information Systems
 t he 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. t he 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’ influence
 the Group’s activities are also influenced by 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, 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 over thirty 
marques, the Group believes that this diversity reduces the impact to the Group that manufacturers’ influence could cause. 
3. dividendS and SHareS
  Ordinary shares of 5p each.
 no interim dividend was paid during the year (2008: 1.60p per share). no final dividend is recommended for the year (2008: 
same).
4. direcTOrS
 the following were Directors of the company at the end of the financial year and thereafter. their interests in the issued 
ordinary share capital of the company were as follows: 
 31.12.09 31.12.08
   number number
 D. c. A. Bramall  85,444,637 40,678,887
 j. e. Brown  98,318 53,628 
 A. c. Bruce  349,271 195,758
 R. A. Gregson  200,000 -
 w. holmes  36,666 20,000 
 p. jones  1,981,000 558,000
 B. schumacker  1,328,762 716,940
 t. M. wainwright  159,467 86,982
 p. M. white  53,716 29,300
 
 Details of Directors’ share options are shown in the Directors’ Remuneration Report.
 All holdings are beneficial.
 t here was no change in the interests of the Directors in shares or share options of the c ompany between 31 December  
 2009 and 9 March 2010.
 t he mid-market price of the ordinary shares at 31 December 2009 was 49.0p and the range during the year was 18.5p to      
69.0p. 25
Lookers plc Annual Report & Accounts 2009
directors’ Report
4.  direcTOrS (continued)
 
 Directors retiring by rotation are j. e. Brown and p. M. white and, being eligible, offer themselves for re-election.        
 
 D. v. Dyson resigned from the Board on 19 May 2009, h. K. surgenor retired from the Board on 30 september 2009 and B. 
schumacker retired from the Board on 1 March 2010.  
 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).
 the company has made qualifying third party indemnity provisions for the benefit of its Directors which were made during the 
year and remain in force at the date of this report.
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 2009.
 
6. caPiT al STrucTure
 Details of the authorised and issued share capital, together with details of the movements in the company’s issued share capital 
during the year are shown in note 23.  t he company has one class of ordinary shares which carry no right to fixed income.  
 there are no specific restrictions on the size of a holding nor on the transfer of shares, which are both governed by the general 
provisions of the Articles of Association and prevailing legislation. the Directors are not aware of any agreements between 
holders of the company’s shares that may result in restrictions on the transfer of securities or on voting rights. 
 no person has any special rights of control over the company’s share capital and all issued shares are fully paid.
 with regard to the appointment and replacement of Directors, the company is governed by its Articles of Association, the 
combined code, the companies Acts and related legislation.  the Articles themselves may be amended by special resolution 
of the shareholders. the powers of Directors are described in the Main Board t erms of Reference, copies of which are 
available on request, and the corporate Governance statement on page 28.
 under its Articles of Association, the company has authority to issue 480,000,000 ordinary shares.
 there are also a number of other agreements that take effect, alter or terminate upon a change of control of the company such 
as commercial contracts, bank loan agreements, property lease arrangements and employees’ share plans.  none of these 
are considered to be significant in terms of their likely impact on the business of the group as a whole.  
7. 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.
 
8. 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.
9. 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 7) 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 2011, is to allot up to £6,400,150 
(128,003,011 shares), being approximately one third of the company’s issued ordinary share capital as at 9 March 2010, 
together with 160,475 shares for share options which could be available for exercise under the lookers sAYe scheme before 
the date of the next Annual General Meeting. 26
Lookers plc Annual Report & Accounts 2009
directors’ Report
 9. SPecial BuSineSS Of THe annual General MeeTinG (continued)
 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 8) 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 2006 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. t herefore, through this Resolution, the Directors are seeking an authority to issue 
small quantities of shares for cash. t he authority is limited to the allotment of up to a maximum nominal value of £958,819 
(19,176,380 shares) in ordinary shares, being  5% of the c ompany’s issued ordinary share capital as at 9 March 2010. 
 t his 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 2011. As usual, they 
intend to seek renewal of this authority at subsequent Annual General Meetings.
 (c)  purchase of own shares 
  the special Business of the Annual General Meeting includes a special Resolution (Resolution 9) 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 £1,917,638 
(38,352,760 shares) representing 10% of the company’s issued ordinary share capital as at 9 March 2010, and the maximum 
and minimum prices at which the company can buy them, reflecting the requirements of the companies Act 2006 and the 
listing Rules of the uK listing Authority. 
 As at 9 March 2010, 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 2009 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 2009 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 2011. As usual the Directors intend to seek 
renewal of this authority at subsequent Annual General Meetings.
	 (d)  notice of General Meetings
  A special Resolution, (Resolution 10) the purpose of which is to renew the authority given at the last Annual General   
 Meeting to call General Meetings on 14 days notice instead of 21 days. 27
Lookers plc Annual Report & Accounts 2009
directors’ Report
10. dOnaTiOnS
 charitable donations amounted to £16,293 (2008: £21,000). no political donations were made (2008: £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 2006) 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 s418 of the companies Act 2006. 
Deloitte llp have expressed their willingness to continue in office and, in accordance with the companies Act 2006, their 
re-appointment will be proposed at the Annual General Meeting.
12. SuPPlier PaYMenT POlicY
 t he Group does not formally follow the better payment practice code issued by the Department of t rade 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. o ther suppliers are generally paid in accordance with their terms of trading.
 At 31 December 2009, the trade creditors of the Group and the company represented 32 and 30 days’ (2008: 44 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, stock financing and commercial paper. 
t o 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 are approved by the Board in line with its treasury policies. 
 the Group seeks to ensure continuity of funding by taking out certain borrowings which are repayable in instalments over 
periods of at least three 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 15, 19, 20 and 30 of the notes to the financial statements for further information in this area.
14. SuBSTanTial SHareHOldinGS
 on 9 March 2010 the following shareholders, so far as the Directors are aware, had an interest in 3% or more of the issued 
ordinary share capital of the company:
 D. c. A. Bramall and family  85,444,637 shares (22.28%)
 t reffick limited 66,224,910 shares (17.27%)
 schroders investment Management limited 18,904,000 shares (4.93%)
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
 r. a. Gregson
 company secretary
 9 March 2010 28
Lookers plc Annual Report & Accounts 2009
statements on corporate Governance
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 2008 combined code (the “code”) 
of the listing Rules of the financial services Authority.
throughout 2009 the company has been in compliance with the code provisions set out in 2008 fRc combined code on 
corporate Governance.
 
The Board 
the Board of Directors at the start of the financial year under review comprised six executive Directors and four non-executive 
Directors. on 19 May 2009 D. v. Dyson resigned and R. A. Gregson was appointed, h. K. surgenor retired as chief executive 
on 30 september 2009 and was replaced by p. jones, B. schumacker retired on 1 March 2010, j. e. Brown, p. M. white and w. 
holmes 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; and
- 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 p. jones is the chief executive. the chairman leads the Board and 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.
j. e. Brown 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. 29
Lookers plc Annual Report & Accounts 2009
statements on corporate Governance
cOMPliance STaTeMenT (continued)
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 2009    
   Board audit remuneration nomination
number held  10  4 4  1
number attended     
D. c. A. Bramall   10  4* 4 *
j. e. Brown  10  4 4  1
A. c. Bruce  10  1* 
D. v. Dyson (resigned 19 May 2009)  3  2*  
R. A. Gregson (appointed 19 May 2009)  6  2*  
w. holmes  10  4 4
p. jones  10  2* 4 *
B. schumacker  10  1*  
h. K. surgenor (resigned 30 september 2009)  7  3* 1 *
t . M. wainwright  10  1*  
p. M. white   10  4* 4  1
 *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. 
the service contracts of executive Directors and the letters of appointment of non-executive Directors are available for inspection 
at the company’s registered office during normal business hours and at the Annual General Meeting.
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, w. holmes, and 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 nomination 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 nomination 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 made against objective criteria including the time available and commitment which will be 
required of the potential Director. 30
Lookers plc Annual Report & Accounts 2009
statements on corporate Governance
aPPOinTMenT and SelecTiOn Of direcTOrS (continued)
nomination committee (continued)
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 Board, led by the senior non-executive 
Director, together appraise the chairman. in 2009, 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 making enquiries, the Directors have formed a judgement, at the time of approving the financial statements, that there is a 
reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future. in 
forming this view, the Directors have reviewed trading and cashflow forecasts and have also taken into consideration that the Group’s 
banking facilities remain available to them and are appropriate given the Group’s current trading and medium-term plans. further 
details surrounding the Directors’ rationale regarding the going concern assumption are included in principal Accounting policies on 
page 40. for this reason the Directors continue to adopt the going concern basis in preparing the financial statements. 
audit committee
the Audit committee comprises j. e. Brown and w. holmes and throughout 2009 was chaired by j. e. Brown. the committee met 
4 times during 2009, 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 2009. 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 llp confirming their independence and objectivity was reviewed by the 
chairman of the Audit committee and the finance Director. the level of fees paid to Deloitte llp for non audit services has been 
considered by the Audit committee and is not perceived to be in conflict with auditor independence.
Deloitte llp have been external auditors for four years. the Audit committee assesses and considers the frequency of changing 
auditors based on their assessment of the audit. no contractual obligations exist which restrict the Audit committee’s choice of 
Auditor.
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 llp were to be appointed. 
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 
t urnbull 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 embed 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 t urnbull Report. 31
Lookers plc Annual Report & Accounts 2009
statements on corporate Governance
accOunTaBiliTY and audiT (continued)
internal control (continued)
the Board confirms that the actions it considers necessary have been or are being taken to remedy such failings and weaknesses 
which it has determined to be significant from its review of the system of internal control.  this has involved considering the 
matters reported to it and developing plans and programmes that it considers are reasonable in the circumstances.  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, www.lookersplc.com, 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 one days before the date of the 
Annual General Meeting. 32
Lookers plc Annual Report & Accounts 2009
corporate social Responsibility Review
cOrPOraTe SOcial reSPOnSiBiliTY ManaGeMenT
t he Main Board of l ookers 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 instils values and standards throughout the Group’s 
businesses. t he operating companies each include social, environmental and ethical issues in their risk assessment processes. t his 
enables the Main Board to ensure that any potential problems are identified and contingency strategies are in place.
l ookers and the environment
l ookers’ activities do have an impact on the environment. t he Group is keen to fulfil its legal obligations on this issue and has a 
Group-wide environmental policy in place. t he need to deal with contamination, waste oil and asbestos issues is at the forefront of 
the Group’s concerns.
o n a wider level, l ookers supports a number of industry initiatives and the Group also engages in all environmental issues raised by 
stakeholders, consumers, suppliers, shareholders and employees.
t he 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.  u se of the latest building 
materials is made in the construction of new sites and the refurbishment of existing locations. f or instance, modern heating controls 
include both timers and thermostats.
l ookers aims to improve its energy, water and fuel efficiency over the coming year throughout the Group’s 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. t he system is recognised 
for iso 14001.
l ookers and ethics
l ookers 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.  t reating c ustomers f airly is now embedded into the Group’s 
ethos and will continue to be part of the Group’s culture.
l ookers makes every effort to ensure its people are aware of these expectations and that they contribute to the high standards 
required of them. t his statement, together with l ookers’ corporate values, is at the heart of how l ookers conducts its business, 
externally in its relationships with stakeholders and internally through its performance management and promotion processes.
l ookers as an employer
people are crucial to l ookers’ success. t his approach is reflected in l ookers’ policies on recruitment and retention, staff share 
scheme, staff communication, and health and safety.
r ecruitment and r etention
l ookers 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.
l ookers’ h uman 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.
l ookers has a comprehensive training programme for its people which has received industry recognition in the form of national 
awards for the automotive industry.
Staff c ommunication
l ookers 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. 
f ace-to-face dialogue between managers and staff takes place regularly; information is communicated through l ookers’ intranet, 
which is used by over 50% of employees every week. l ookers also uses newsletters and updates to keep its staff informed.
Health and Safety
l ookers 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. t he Main Board maintains ultimate responsibility for health and safety issues at l ookers with the manager 
responsible for the day-to-day responsibility, supported by all levels of management. t his policy is defined in the Group’s h ealth and 
safety policy statement and all staff are issued with, or have access to, a detailed health and safety guide.
t he statistics for the Group, under u K h ealth and safety regulations for the year ended 31 December 2009, are set out below:
 2009 
number of fatalities -
injuries resulting in absence over three days 23
Major injuries reported under RiDDoR* 3
Dangerous occurrences reported under RiDDoR* 1
number of enforcement notices issued by hse -
number of prohibition notices issued by hse -
*Reporting of injuries, Diseases and Dangerous o ccurrences Regulations 1995
l ookers and the community
l ookers is committed to playing an active role in the communities it serves. All l ookers’ businesses operate their own community 
programmes and fund raising charity events. in addition, some charities are supported at a Group level such as the motor trades’ Ben . 33
Lookers plc Annual Report & Accounts 2009
directors’ Remuneration Report
inTrOducTiOn
this report has been prepared in accordance with schedule 8 of the Accounting Regulations under the companies Act 2006. 
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 relating to Directors’ remuneration in the combined code. As required by the Act, a resolution 
to approve the report will be proposed at the Annual General Meeting of the company at which the financial statements will be 
approved. the Act require the auditors to report to the company’s members on certain parts of the Directors’ Remuneration 
Report and to state whether in their opinion these parts of the report have been properly prepared in accordance with the 
Accounting 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 w. holmes (chairman), j. e. 
Brown and p. M. white. w. holmes 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 revenue, 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 35 and 36. Directors retiring by rotation are shown in the Directors’ Report on page 25. none of the 
executive Directors currently has any long-term incentives other than the performance share plan (“psp”) which was approved 
at the Annual General Meeting in May 2008.
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 set out below:
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, who resigned on 19 May 2009 and B. 
schumacker were members of the scheme for part of the year and A. c. Bruce remains a member 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, p. jones, R. A. 
Gregson, B. schumacker and t . M. wainwright participate in money purchase arrangements.
Share Option incentives
the company operated three share option schemes under which the executive Directors and senior executives can be granted 
discretionary options from time to time by the Board together with a savings related share option scheme (“sAYe”) open to 
employees in general. these three schemes were approved at the Annual General Meeting in May 2008.  
Performance Share Plan
selected executive Directors as detailed on page 36 participate in the psp, which was approved by the shareholders at the Annual 
General Meeting in May 2008.
Annual awards under the psp are in the form of a contingent grant of shares, the vesting of which will be subject to tri-annual 
performance criteria.  f or the 2008 award the performance period is for the 3 years to 31 December 2010 based upon adjusted 
earnings per share growth targets. t here was no award in 2009. 34
Lookers plc Annual Report & Accounts 2009
directors’ Remuneration Report
unaudiTed infOrMaTiOn (continued)
Performance Share Plan (continued)
performance is measured on earnings per share growth over the three year period and shares will vest 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 the contingent share award dependent upon the level of growth over and above the Rpi. 
At 10% over the Rpi, participating executives may earn 25% of the contingent share award. A stepped scale is then applied up 
to a maximum of 120% of the contingent award if the increase in earnings per share over the period is 50% over and above the 
Rpi. the relevant percentage will be applied to the executives’ contingent share award at the end of the performance period to 
arrive at any shares to be issued.  
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 the 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.
  
     
 date of contract notice Period  contractual Termination Payments   
 
p. jones 22 february 2010 1 Year Basic salary and benefits for unexpired term  
R. A. Gregson 22 february 2010 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 14 December 2006 1 Year Basic salary and benefits for unexpired term  
All contracts are rolling contracts.
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 
and as previously approved by the members.  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. 35
Lookers plc Annual Report & Accounts 2009
directors’ Remuneration Report
audiTed infOrMaTiOn
directors’ emoluments
     compensation    Pension pension
   annual Benefits- for loss of 2009  2008      contributions  contributions
 fees Salary Bonus in-kind Office  Total   total  2009 2008
 £000 £000 £000 £000 £000 £000  £000  £000 £000
p. M. white 100 - 10 - - 110 100  - -
h. K. surgenor (1) - 315 315 15 - 645 440  - -
D. v. Dyson (2) - 112 - 8 325 445 284  23 53
p. jones - 252 252 16 - 520 125  48 -
B. schumacker - 184 184 14 - 382 200  40 36
A. c. Bruce  - 184 184 16 - 384 204  37 36
t . M. wainwright - 184 92 27  - 303  238   23  23
R. A. Gregson (3)  -   143 143 7 - 293 -  29 - 
j. e. Brown 37 - - - - 37 35  - - 
D. c. A. Bramall 35 - - - - 35    35  - - 
w. holmes 35 - - - - 35 18  - -
total 207 1,374 1,180 103 325 3,189 1,679  200 148
(1)  Retired on 30 september 2009
(2)  Resigned on 19 May 2009
(3)  Appointed on 19 May 2009
with effect from 1 April 2006, the company ceased making contributions to the pension arrangements of h. K. surgenor, his       
basic salary being increased by an equivalent amount in lieu of such contributions. this resulted 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 (2008: £48,000). 
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 24. 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. 
   Transfer value  
 additional accrued  31 december 2009   
 benefits earned accrued or date of transferring transfer value increase/(decrease) 
 in the year entitlement out of the scheme 31 December 2008 in transfer value
 £000 £000 £000 £000 £000
B. schumacker - 51 1,104 1,121 (17)
A. c. Bruce 3 29 375 272 103 
B. schumacker transferred out of the scheme on 31 january 2009.
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
B. schumacker    - 7
A. c. Bruce    2 24 36
Lookers plc Annual Report & Accounts 2009
directors’ Remuneration Report
audiTed infOrMaTiOn (continued)
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   
   date of exercise expiry price number at lapsed number at
 Scheme Grant date date (pence) 1 January 2009 in Year  31 december 2009
h. K. surgenor psp 23.6.2008 23.6.2011 22.6.2018 - 630,000 - 630,000
B. schumacker psp 23.6.2008 23.6.2011 22.6.2018 - 276,000 - 276,000
A. c. Bruce psp 23.6.2008 23.6.2011 22.6.2018 - 276,000 - 276,000
t. M. wainwright psp 23.6.2008 23.6.2011 22.6.2018 - 276,000 - 276,000
p. jones psp 23.6.2008 23.6.2011 22.6.2018 - 161,000 - 161,000
t he only options outstanding at 31 December 2009 are in respect of the psp . Details of performance conditions attaching to 
the psp are set out on pages 33 and 34.
        
the mid-market price of the ordinary shares at 31 December 2009 was 49.0p and the range during the year was 18.5p to 
69.0p.
Gains made by directors on Share Options
there were no gains made by Directors during 2009 (2008: £nil).
directors’ interests in the Performance Share Plan
Bonuses under the psp are payable in shares, with a conditional award of shares capable of being made annually, based on 
the executive’s salary at the start of each performance period. Details of the performance condition of the psp can be found on 
pages 33 and 34. Details of the conditional awards to the executive Directors under the psp are shown in the table of Directors’ 
share options above.
the company’s Register of Directors’ interests contains full details of Directors’ shareholdings and options to subscribe.
By order of the Board
r. a. Gregson
company secretary
9 March 2010 37
Lookers plc Annual Report & Accounts 2009
Statement of directors’ responsibilities
the Directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and 
regulations.
company law requires the Directors to prepare financial statements for each financial year. under that law the Directors are required 
to prepare the Group financial statements in accordance with international financial Reporting standards (“ifRss”) as adopted by 
the european union and Article 4 of the iAs Regulation and have also elected to prepare the parent company financial statements in 
accordance with ifRss as adopted by the european union. under company law the Directors must not approve the accounts unless 
they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for 
that period. in preparing these financial statements, international Accounting standard 1 requires that Directors:
• properly select and apply accounting policies;
• present information, including accounting policies, in a manner that provides relevant, reliable, comparable and   
 understandable information;
• provide additional disclosures when compliance with the specific requirements in ifRss are insufficient to enable users  
 to understand the impact of particular transactions, other events and conditions on the entity’s financial position and  
 financial performance; and
•	 make an assessment of the company’s ability to continue as a going concern.
the Directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s 
transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure 
that the financial statements comply with the companies Act 2006. they are also responsible for safeguarding the assets of the 
company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
the Directors are responsible for the maintenance and integrity of the corporate and financial information included on the 
company’s website. legislation in the united Kingdom governing the preparation and dissemination of financial statements may 
differ from legislation in other jurisdictions.
Responsibility statement
we confirm that to the best of our knowledge:
• the financial statements, prepared in accordance with international financial Reporting standards, give a true and fair  
 view of the assets, liabilities, financial position and profit or loss of the company and the undertakings included in the  
 consolidation taken as a whole; and
• the management report, which is incorporated into the Directors’ Report, includes a fair review of the development and  
 performance of the business and the position of the company and the undertakings included in the consolidation taken  
 as a whole, together with a description of the principal risks and uncertainties that they face.
By order of the Board
P. Jones   r. a. Gregson
chief executive  finance Director
9 March 2010  9 March 2010
directors’ Responsibilities 38
Lookers plc Annual Report & Accounts 2009
independent Auditors’ Report
indePendenT audiTOrS’ rePOr T TO THe SHareHOlderS Of lOOkerS Plc
we have audited the financial statements of lookers plc for the year ended 31 December 2009 which comprise the principal 
Accounting policies, the Group and parent company income statements, the Group and parent company Balance sheets, 
Group and parent company consolidated statement of comprehensive income, the Group and parent company cash flow 
statements, Group and company statements of changes in equity and the related notes 1 to 32.  the financial reporting 
framework that has been applied in their preparation is applicable law and international financial Reporting standards (ifRss) as 
adopted by the european union.
this report is made solely to the company’s members, as a body, in accordance with chapter 3 of part 16 of the companies Act 
2006.  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.  t o 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
As explained more fully in the Directors’ Responsibilities statement, the directors are responsible for the preparation of the financial 
statements and for being satisfied that they give a true and fair view.  our responsibility is to audit the financial statements in 
accordance with applicable law and international standards on Auditing (uK and ireland).  those standards require us to comply 
with the Auditing practices Board’s (ApB’s) ethical standards for Auditors.
Scope of the audit of the financial statements
An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give reasonable 
assurance that the financial statements are free from material misstatement, whether caused by fraud or error.  this includes 
an assessment of: whether the accounting policies are appropriate to the group’s and the parent company’s circumstances and 
have been consistently applied and adequately disclosed; the reasonableness of significant accounting estimates made by the 
directors; and the overall presentation of the financial statements.
Opinion on financial statements
in our opinion:
• the financial statements give a true and fair view of the state of the group’s and of the parent company’s affairs as at  
 31 December 2009 and of the group’s profit and the parent company’s loss for the year then ended;
• the financial statements have been properly prepared in accordance with ifRss as adopted by the european union;  
 and
•  the financial statements have been prepared in accordance with the requirements of the companies Act 2006 and,  
 as regards the group financial statements, Article 4 of the iAs Regulation.
Opinion on other matters prescribed by the companies act 2006
in our opinion:
• the part of the Directors’ Remuneration Report to be audited has been properly prepared in accordance with the  
 companies Act 2006; and
• the information given in the Directors’ Report for the financial year for which the financial statements are prepared is  
 consistent with the financial statements. 39
Lookers plc Annual Report & Accounts 2009
independent Auditors’ Report
Matters on which we are required to report by exception
we have nothing to report in respect of the following:
under the companies Act 2006 we are required to report to you if, in our opinion:
• adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not  
 been received from branches not visited by us; or
• the parent company financial statements and the part of the Directors’ Remuneration Report to be audited are not in  
 agreement with the accounting records and returns; or
• certain disclosures of directors’ remuneration specified by law are not made; or
• we have not received all the information and explanations we require for our audit.
under the listing Rules we are required to review:
• the directors’ statement contained within the Director’s Report in relation to going concern; and
• the part of the c orporate Governance s tatement relating to the company’s compliance with the nine provisions of the  
 june 2008 combined code specified for our review.
Patrick loftus (Senior Statutory auditor)
for and behalf of deloitte llP
chartered Accountants and statutory Auditors 
Manchester, united Kingdom
9 March 2010 40
Lookers plc Annual Report & Accounts 2009
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 2006. 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 of the Directors’ Report.
2. BaSiS Of PreParaTiOn
 the financial statements of the Group have been prepared in accordance with international financial Reporting standards 
(ifRs) adopted by the european union. therefore the group financial statements comply with article 4 of eu iAs Regulation 
as adopted for use in the eu.
 the Group has adopted standards and interpretations issued by the international Accounting standards Board (iAsB) and 
the international financial Reporting interpretations committee of the iAsB. individual standards and interpretations have 
to be adopted by the european commission (ec) and the process leads to a delay between the issue and adoption of new 
standards and in some cases amendment by the ec. 
 international financial Reporting standards are subject to ongoing amendment by the iAsB and subsequent endorsement by 
the ec and are therefore subject to change.
 the financial statements have been prepared on the historical cost basis. 
 adOPTiOn Of new and reviSed ST andardS
 in the current year, the following new and revised standards and interpretations have been adopted and have affected the 
amounts reported in the financial statements.
 
 iaS 1 (revised 2007) 
 presentation of financial statements. iAs 1 (revised 2007) has introduced a number of changes in the format and content of 
the financial statements. 
 specifically, iAs 1 requires an entity to present a statement of financial position as at the beginning of the earliest comparative 
period in a complete set of financial statements when the entity applies an accounting policy retrospectively or makes a 
retrospective restatement, or when the entity reclassifies items in the financial statements. During the current year, the Group 
adopted ifRs 8 ‘operating segments’. however, the Directors consider that because the adoption of the standard has no 
impact on the balance sheet, no presentation of a third balance sheet is required.
 ifrS 8 ‘Operating Segments’ 
 ifRs 8 is a disclosure standard that has had no effect on the Group’s reportable segments. no adjustment to segmental 
disclosures has arisen from this transition.
 amendments to ifrS 7 
 financial instruments: Disclosures. the amendments to ifRs 7 expand the disclosures required in respect of fair value 
measurements and liquidity risk. the Group has elected not to provide comparative information for these expanded 
disclosures in the current year in accordance with the transitional reliefs offered in these amendments.
 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 3 Business combinations - Revised standard
 ifRs 7 financial instruments: Disclosures - Amendment
 iAs 1  presentation of financial statements - Amendment
 iAs 27 consolidated separate financial statements
 iAs 39 financial instruments: Recognition and Measurement - Amendment
 ifRic 12 service concession Arrangements
 ifRic 17 Distribution of non cash Assets to owners
 ifRs 18 t ransfer of Assets from customers 
 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 company.
 Going concern
 this financial information has been prepared on a going concern basis which the Directors believe to be appropriate for the 
reasons set out below.
 the company and the Group meet their day to day working capital requirements through short-term stocking loans and the 
revolving credit facility and medium-term funding requirements through a term loan. the facilities in place at the year end were 
established by renegotiating the prior facilities in May 2009 and june 2009. As noted in the chairman’s Review, the Group 
successfully raised £77 million from an equity raising which has significantly reduced the company’s debt. 41
Lookers plc Annual Report & Accounts 2009
Principal Accounting Policies
 At the year end the medium-term banking facilities included a revolving credit facility of up to £53.3 million and a term loan 
totalling £90.9 million, providing total facilities of £144.2 million. 
 in addition to the total facility limit, the revised facilities include certain covenant tests. the failure of a covenant test would 
render the entire facilities repayable on demand at the option of the lenders.
 the Directors have assessed the future funding requirements of the Group and the company and compared them to the level 
of committed available borrowing facilities. this assessment included a detailed review of trading and cash flow forecasts 
for a period in excess of one year from the date of this annual report which project that the total revised facility limit is 
not exceeded over the duration of the forecasts. whilst acknowledging the uncertainties in the operating environment, as 
discussed in the Directors’ Report, the Directors have prepared forecasts that make assumptions in respect of future trading 
conditions and in particular to volumes and margins of new and used car sales, aftersales and parts, achieving operational 
improvements and cost reductions.
 in addition to this the nature of the Group's business is such that there can be variation in the timing of cash inflows as 
trading patterns develop, in particular the March and september registration periods. the forecasts have been prepared on 
the assumption that short-term stocking facilities with stocking finance providers of £88 million and normal manufacturer 
consignment stock facilities will remain available to the Group throughout the next 12 months. the forecasts take into 
account the aforementioned factors to an extent which the Directors consider to be reasonable, based on the information 
that is available to them at the time of approval of this financial information.  
 in the event that additional funds are required in excess of the proposed facilities as a result of the Group not substantially 
achieving its forecasts, the Directors would have to supplement, renew or replace those facilities with facilities that are 
appropriate to the Group's ongoing requirements. 
 
 the Directors have a reasonable expectation that the Group and the company have adequate resources to continue in 
operational existence for the foreseeable future. for those reasons, they continue to adopt the going concern basis in 
preparing this Annual Report. 
 the financial statements have been prepared on the historical cost basis, except for the revaluation of certain properties and 
financial instruments. the principal accounting policies adopted are set out below. 
3. criTical accOunTinG eSTiMa TeS
 
 Pensions
 the 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 schemes after deduction of the fair value of the related assets.  the schemes’ liabilities 
are derived by estimating the ultimate cost of benefits payable by the schemes and reflecting the discounted value of the 
proportion accrued by the year end in the balance sheet.  in order to arrive at these estimates, 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 schemes will also depend upon the length of time that members of the schemes live for; 
the longer they remain alive, the higher the cost of the pension benefits to be met by the schemes. Assumptions are made regarding 
the expected lifetime of the schemes’ members, based upon recent national experience. h owever, given the rates of advance in 
medical science, it is uncertain whether these assumptions will prove to be accurate in practice.
 t he 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 schemes liabilities. t his rate is potentially subject to significant variation. t he net cost recognised in the 
income statement is also affected by the expected return on the schemes’ assets. t his is determined on the bases of the asset mix 
within the schemes at the beginning of the year and the market expectations for the return on each asset type. t he impact of the 
pension estimates on the Group’s accounts can be seen in note 28.
 Goodwill and intangible assets
 t he 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. t he 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. 
 t his 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. 42
Lookers plc Annual Report & Accounts 2009
Principal Accounting Policies
  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. t he measurement and assessment of the useful economic lives of intangible assets requires the use of 
judgement by management.
 
4. BaSiS Of cO nSOlida TiOn
 t he consolidated financial statements comprise the accounts of the c ompany and its subsidiary undertakings. An undertaking 
is regarded as a subsidiary if the Group has control over its operating and financial policies. t he profits and losses of subsidiary 
undertakings are consolidated as from the effective date of acquisition or to the effective date of disposal.
 t he Group uses the purchase method of accounting to account for the acquisition of subsidiaries. t he 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, 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. t he 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. u nrealised 
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.
5. revenue rec OGni TiOn
 Revenue is measured at invoice price, excluding value added taxes, and principally comprises external vehicle sales, parts, servicing 
and bodyshop sales. vehicle and parts sales are recognised when substantially all risks and rewards have been transferred to 
the customer. t his is generally at the time of delivery to the customer. service and bodyshop sales are recognised in line with the 
work performed. Revenue also comprises commissions receivable for arranging vehicle financing and related insurance products. 
c ommissions are based on agreed rates and income is recognised at the time of approval of the vehicle finance by the finance 
provider. w here the Group is acting as agent on behalf of a principal, the commission earned is also recorded at an agreed rate when 
the transaction has occurred.
6 SeGMen Tal r ePOr Tin G 
 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. t he business segments are set out in note 1. As noted in the Basis of 
preparation, the Group adopted if Rs 8 ‘o perating segments’ during the period. n o adjustment to the Group’s Business segments 
has arisen as a result of the transition from iAs 14 ‘segmental Reporting’.
   
 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.  
7. exce PTiOnal iTeMS
 exceptional items are items that are unusual because of their size, nature or incidence and which the Group’s management considers 
should be disclosed separately to enable a full understanding of the Group’s results.     
8. GOOdwill ari Sin G On cO nSOlida TiOn
 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.
9. inTan GiBle 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. t he useful life of customer relationships is expected to be up to 20 years, and the useful lives of acquired brands vary between 
5 years and indefinite life. t he Group has no internally generated intangible assets.
10. inve STMen TS
 investments held as fixed assets are stated at cost less provision for impairment.
11. Pr OPer TY, Plan T and equi PMen T
 Assets are stated at their deemed cost less depreciation. w ith the exception of certain properties which were revalued on  
31 December 2003, all assets are recorded at historical cost. t he 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 if Rs. t he Group has 
adopted the cost model under iAs 16, ‘property plant and equipment.’ 43
Lookers plc Annual Report & Accounts 2009
Principal Accounting Policies
11. Pr OPer TY, Plan T and equi PMen T (continued)
 f reehold 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 and 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 “Assets held for sale” when management expect their disposal to be completed 
within one year from the balance sheet date. n on-current assets classified as held for sale are stated at the lower of net book value 
or expected proceeds.
12. iMPair Men T 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. t he recoverable amount is the higher of an asset’s fair value less disposal costs, and value in use. 
13. l ea SeS
 Assets purchased under hire purchase contracts are capitalised in the balance sheet and are depreciated over their useful lives. t he 
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.
14. inven TOrie S
 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. t he Group recognises consignment stock in its balance sheet when there has been a 
substantial transfer of the risks and rewards of ownership. t he related liabilities are included in trade payables.
15. Taxa TiOn
 t he tax expense represents the sum of the tax currently payable and deferred tax. t he 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.  t he 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. h owever, 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 substantively 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. Pen SiOn cOSTS
 t he Group operates the “l ookers pension plan” and the “Dutton f orshaw Group pension plan” which are defined benefit pension 
schemes providing benefits based on final pensionable salary. t he defined benefit schemes define 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. Both 
schemes are closed to new members.
 t he last triennial valuation of the “l ookers pension plan” was carried out at 31 December 2007 by Mercer h uman Resource 
c onsulting l imited and has been updated to 31 December 2009 by a qualified independent actuary to take account of iAs 19 
requirements. t he last triennial valuation of the “Dutton f orshaw Group pension plan” was carried out at 31 March 2007 by KpMG 
llp and has been updated to 31 December 2009 by a qualified independent actuary to take account of iAs 19 requirements.  
 under iAs 19, the defined benefit deficits are included on the Group’s balance sheet. l iabilities 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 schemes.
 t he current service cost and any past-service costs are included in the income statement within operating costs. t he expected return 
on the schemes’ assets, net of the impact of the unwinding of the discount on schemes’ 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 conditional 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.
 t he Group also provides pension arrangements for employees and certain Directors under defined contribution schemes. 
c ontributions for these schemes are charged to the income statement in the year in which they are payable. 44
Lookers plc Annual Report & Accounts 2009
Principal Accounting Policies
17. c aSH and c aSH equivalen TS
 f or 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 Ba Sed Pa YMen TS
 t he 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. t he 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 shares that will eventually vest and adjusted for the effect of non-market-based vesting conditions.
 
 f air value is measured by use of the Black scholes model. t he 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.
19. deriva Tive f inancial inSTru Men TS 
 t he Group enters into a variety of derivative financial instruments to manage its exposure to interest rate and foreign exchange rate 
risk, including forward foreign exchange contracts and an interest rate collar. f urther details of derivative financial instruments are 
disclosed in note 20 to the financial statements.
 
 Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently remeasured 
to their fair value at each reporting date. t he resulting gain or loss is recognised in the income statement immediately unless the 
derivative is designated and effective as a hedging instrument, in which event, the timing of the recognition in the income statement 
depends on the nature of the hedge relationship. t he Group designates certain derivatives as hedges of highly probable forecast 
transactions or hedges of foreign currency risk of firm commitments (cash flow hedges).
 t he fair value of hedging derivatives is classified as a non-current asset or a non-current liability if the remaining maturity of the hedge 
relationship is more than 12 months and as a current asset or a current liability if the remaining maturity of the hedge relationship is 
less than 12 months.
 
 Derivatives not designated into an effective hedge relationship are classified as a current asset or a current liability.
20. effec Tive in Tere ST MeTHOd
 t he effective interest method is a method of calculating the amortised cost of a financial asset and of allocating interest income over 
the relevant period.  t he effective interest rate is the rate that exactly discounts estimated future cash receipts through the expected 
life of the financial asset, or, where appropriate, a shorter period.
 
 Debt instruments that are held-to-maturity, are available for sale or are loans and receivables recognised in income on an effective 
interest rate basis.
 l oans and r eceivables
 t rade receivables, loans and other receivables that have fixed or determinable payments that are not quoted in an active market are 
classified as ‘loans and receivables’. l oans and receivables are measured at amortised cost using the effective interest method less 
impairment.
 
 interest is recognised by applying the effective interest rate, except for short-term receivables when the recognition of interest would 
be immaterial.
 impairment of f inancial assets
 f inancial assets, other than those at fair value through profit or loss, are assessed for indicators of impairment at each balance sheet 
date. f inancial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after 
the initial recognition of the financial asset the estimated future cash flows of the investment have been impacted. f or loans and 
receivables the amount of the impairment is the difference between the asset’s carrying amount and the present value of estimated 
future cash flows, discounted at the original effective interest rate.
 t he carrying amount of the financial asset is reduced by the impairment loss directly for all financial assets with the exception 
of trade receivables where the carrying amount is reduced through the use of an allowance account. w hen a trade receivable is 
uncollectable, it is written off against the allowance account. subsequent recoveries of amounts previously written off are credited 
against the allowance account. c hanges in the carrying amount of the allowance account are recognised in profit or loss.
21. f inancial inSTru Men TS iSSued BY THe Gr OuP
 debt instruments
 Debt instruments are classified as either financial liabilities or as equity in accordance with the substance of the contractual 
arrangement.
 f inancial l iabilities
 f inancial liabilities are classified as either financial liabilities ‘at fair value through profit or loss’ or other financial liabilities. 45
Lookers plc Annual Report & Accounts 2009
income statements
consolidated statement of comprehensive income
     Group    company  
  2009 2008 2009 2008
 note £m £m £m £m
Actuarial losses recognised in post-      
retirement benefit schemes 28 (9.4) (6.1) (3.7)  (7.3)
Movement in deferred taxation on pension liability   2.3 1.7  0.6 2.0
fair value on derivative instruments   (1.2) (1.1) (0.9) (1.1)
net losses recognised directly in equity    (8.3) (5.5)  (4.0) (6.4)
profit/(loss) for the financial year    8.0 (16.0) (11.4) (2.5)
total recognised in comprehensive income for the year  (0.3) (21.5) (15.4) (8.9)
  Group   company  
  2009 2008 2009 2008
 note £m £m £m £m
continuing operations        
Revenue 1 1,749.0 1,775.9  - - 
     
cost of sales  (1,487.9) (1,533.8) - - 
     
Gross profit  261.1 242.1 - - 
Distribution costs  (139.5) (160.1) - - 
Administrative expenses  (92.7) (72.1) (24.0) (12.9) 
other operating income  0.4 0.3  16.1 19.7 
profit/(loss) from operations  29.3 10.2  (7.9) 6.8
     
profit from operations before amortisation 
and exceptional items  45.1 33.9  4.3 10.6
Amortisation of intangible assets 9 (1.7) (1.4)  (0.8) (0.4)
impairment of goodwill 8 - (3.1) - -
exceptional items from operations 3 (14.1) (19.2)  (11.4) (3.4)
     
profit/(loss) from operations  29.3 10.2 (7.9) 6.8 
interest payable 2 (17.1) (21.2) (13.7) (12.0) 
interest receivable 2 0.3 1.3  5.6 5.8
net interest  (16.8) (19.9) (8.1) (6.2)
exceptional interest payable on closed businesses 3 (0.1) (0.8) - -
fair value on derivative instruments  - (4.0) - (4.4)
Debt issue costs  (0.9) (0.4) (0.9) (0.4)
profit/(loss) on ordinary activities before taxation  11.5 (14.9) (16.9) (4.2)
profit before tax, amortisation,     
exceptional items and debt issue costs  28.3 14.0  (3.8) 4.4 
Amortisation of intangible assets  (1.7) (1.4)  (0.8) (0.4) 
impairment of goodwill  - (3.1) - -
total exceptional items  3 (14.2) (20.0) (11.4) (3.4)
fair value on derivative instruments  - (4.0) - (4.4)
Debt issue costs  (0.9) (0.4) (0.9) (0.4)
profit/(loss) on ordinary activities before taxation 3 11.5 (14.9) (16.9) (4.2)
exceptional tax charge  - (7.2) - -
Tax	(charge)/credit	excluding	exceptional	tax	charge	 4 (3.5)  6.1 	 5.5	 1.7
profit/(loss) for the year    8.0 (16.0) (11.4) (2.5) 
     
continuing operations
earnings/(loss) per share     
Basic earnings/(loss) per share 6 2.79p (7.68)p    
Diluted earnings/(loss) per share 6 2.72p (7.68)p 
      46
Lookers plc Annual Report & Accounts 2009
Balance sheets
  Group   company  
  2009 2008 2009 2008  
 note £m £m £m £m 
nOn-currenT aSSeTS     
Goodwill 8 44.8  44.8 - -   
intangible assets 9 17.1  18.4 3.4 3.8
property, plant and equipment 10 197.6  205.8    0.4 0.5  
investment in subsidiaries 11 -  -    53.7 53.7  
Deferred tax asset 22 -  -  7.4 5.9    
  259.5  269.0   64.9 63.9 
currenT aSSeTS     
inventories 12 247.4  303.7   - - 
trade and other receivables 13 106.3  84.3   193.4 223.6 
cash and cash equivalents 15 12.3  2.1    20.7 8.2
Derivative financial instruments  -  0.3 - -
Assets held for sale 16 9.2  5.4 - - 
   375.2  395.8     214.1 231.8 
TOTal aSSeTS  634.7  664.8     279.0 295.7
         
currenT liaBiliTieS     
financial liabilities        
- Bank loans and overdrafts 19 10.4  10.0  10.0 10.0 
- hire purchase obligations  0.2  -    - - 
trade and other payables 17 315.1  371.7    43.1 58.5
current tax liabilities 18 8.8  4.5    6.0 4.8
short-term provisions 21 0.9  1.6    - - 
Derivative financial instruments  6.3  5.4 6.3 5.4
   341.7  393.2 65.4 78.7
     
neT currenT aSSeTS   33.5  2.6  148.7 153.1  
   
nOn-currenT liaBiliTieS   
financial liabilities       
- Bank loans 19 80.9  141.6  80.9 148.5 
trade and other payables 17 4.6  5.4 - -
Retirement benefit obligations 28 35.5  27.7 18.2 16.1 
Deferred tax liabilities 22 11.2  13.3 - - 
long-term provisions 21 0.7  0.7  - - 
   132.9  188.7  99.1 164.6   
       
TOTal liaBiliTieS   474.6  581.9 164.5 243.3  
      
neT aSSeTS   160.1  82.9  114.5 52.4   
     
SHareHOlderS’ equiTY     
ordinary share capital 23 19.2  9.1   19.2 9.1
share premium 24 73.6  6.2 73.6 6.2
capital redemption reserve 25 14.6  14.6   14.6 14.6 
other reserve 26   (1.4) (1.1)      (1.1)  (1.1)
Retained earnings 27 54.1  54.1   8.2 23.6  
TOTal equiTY  160.1  82.9 114.5 52.4
the financial statements on pages 40 to 74 were approved by the Directors on 9 March 2010. signed on behalf of the 
Directors.
P. Jones r. a. Gregson 
Director Director 47
Lookers plc Annual Report & Accounts 2009
consolidated statement of changes in equity
   capital
 Share Share redemption  Other  retained 
 capital premium reserve reserve  earnings Total
Group £m £m £m £m  £m £m
As at 1 january 2008 9.1 5.6 14.6 0.4 81.8 111.5
new shares issued  - 0.6 - - - 0.6
loss for the year  - - - - (16.0) (16.0)
Dividends  - - - - (7.3) (7.3)
Actuarial losses on defined benefit  
pension schemes (note 28) - - - - (6.1) (6.1)
Deferred taxation on pension liability - - - - 1.7 1.7
share based payments - - - (0.4) - (0.4)
fair value on derivative instruments  - - - (1.1) - (1.1)
As at 31 December 2008 9.1 6.2 14.6 (1.1) 54.1 82.9
      
new shares issued  10.1 67.4 - -  - 77.5
profit for the year  - - - - 8.0 8.0
Actuarial losses on defined benefit  
 pension schemes (note 28) -  - - - (9.4) (9.4)
Deferred taxation on pension liability -  - - - 2.3 2.3
fair value on derivative instruments  - - - (0.3) (0.9) (1.2)
As at 31 December 2009 19.2 73.6 14.6 (1.4) 54.1 160.1
   capital
 Share  Share  redemption  Other retained 
 capital  premium reserve  reserve earnings  Total
company £m  £m £m  £m £m £m
As at 1 january 2008 9.1 5.6 14.6 0.4 38.7 68.4
new shares issued - 0.6 - - - 0.6
loss for the year -  - -  - (2.5) (2.5) 
Dividends -  - -  - (7.3) (7.3)
Actuarial losses on defined benefit  
pension schemes (note 28)  - - -  - (7.3) (7.3)
Deferred taxation on pension liability -  - -  - 2.0 2.0
share based payments -  - -  (0.4) - (0.4)
fair value on derivative instruments -  - -  (1.1) - (1.1)
As at 31 December 2008 9.1 6.2 14.6 (1.1) 23.6 52.4
new shares issued 10.1 67.4 -  - - 77.5
profit for the year - - -  - (11.4) (11.4)
Actuarial gains on defined benefit    
pension schemes (note 28) - - -  - (3.7) (3.7)
Deferred taxation on pension liability - - -  - 0.6 0.6
fair value on derivative instruments - - - - (0.9) (0.9)
As at 31 December 2009 19.2 73.6 14.6 (1.1) 8.2 114.5 48
Lookers plc Annual Report & Accounts 2009
cash Flow statements
   Group    company  
   2009  2008  2009 2008
  note £m £m £m £m
     
cash flows from operating activities     
     
profit/(loss) for the year  8.0 (16.0)   (11.4) (2.5) 
Adjustments for:     
tax   3.5 1.1  (5.5) (1.7)  
Depreciation 3 8.3 9.0  0.3 0.3
impairment of fixed assets on dealership closures  - 2.5 - -
Dividend received   - -  (6.1) (3.5) 
loss on disposal of plant and equipment  3 - 0.2 - -
loss on closed businesses 3 (1.8) -  - -
Amortisation of intangible assets 3 1.7 1.4 0.8 0.4 
impairment of goodwill 8 - 3.1 - -
interest income  (0.3) (1.6)   (5.5) (9.5)  
interest payable  17.2 26.3 13.7 20.1 
Debt issue costs  0.8 0.4 0.9 0.4
share based payment credit  - (0.4) - (0.4)   
             
changes in working capital    
 Decrease in inventories  56.2 17.1 - -
 (increase)/decrease in trade and other receivables  (18.3) 24.2 34.2 (12.4)
 (Decrease)/increase in payables  (52.0) (42.8) (14.9) 5.1
 Difference between pension charge and 
 cash contributions  (3.0) (2.2) (3.0) (2.4)  
 Movement in provisions  (0.2) 1.4 - - 
cash generated from/(used in) operations  20.1 23.7 3.5 (6.1)  
interest paid  (15.0) (20.3) (10.9) (14.7)
interest received  0.2 1.2 4.8 9.5 
tax refunded/(paid)  1.0 (3.0) 1.0 0.4  
net cash inflow/(outflow) from operating activities  6.3 1.6 (1.6) (10.9)
cash flows from investing activities     
     
Acquisition of subsidiaries (net of overdraft acquired)  - (4.4) - -
purchase of property, plant and equipment  (7.2) (8.6) (0.3) (0.3)
purchase of intangible assets  (0.2) (3.8) (0.2) (3.8)
proceeds from sale of property, plant and equipment  2.5 0.5 - -
proceeds from sale of business  0.3 - - -
Dividends received  - - 6.1 3.5
net cash (used)/generated by investing activities  (4.6) (16.3) 5.6 (0.6)
     
cash flows from financing activities     
     
proceeds from issue of ordinary shares  77.6 - 77.6 - 
Repayment of loans  (65.9) (10.0) (65.9) (10.0) 
net proceeds from issue of new bank loans  - 18.9 - 35.8
Debt issue costs  (3.5) - (3.5) -
principal payments under hire purchase agreements  (0.1) (0.1) - -
Dividends paid to Group shareholders  - (6.8) - (6.8) 
net cash from financing activities  8.1 2.0 8.2 19.0
     
increase/(decrease) in cash and cash equivalents  9.8 (12.7) 12.2 7.5
cash and cash equivalents at 1 january  2.1 14.8 8.5 1.0
cash and cash equivalents at 31 december  11.9 2.1 20.7 8.5 49
Lookers plc Annual Report & Accounts 2009
1. SeGMen Tal re POr Tin G
a doption of ifr S 8 ‘Operating segments’
t he Group has adopted if Rs 8 ‘o perating segments’ with effect from 1 j anuary 2009. if Rs 8 requires operating 
segments to be identified on the basis of internal reports about components of the Group that are regularly reviewed 
by the c hief executive to allocate resources to the segments and to assess their performance. At 31 December 2009 
the Group is organised into two main business segments, motor distribution and parts distribution.
Primary reporting format - business segments
Year ended   Motor Parts  
31 december 2009  division distribution unallocated Group
 note £m £m £m £m
continuing operations
new cars  783.6   
used cars  542.7
Aftersales  268.4
revenue  1,594.7 154.3 - 1,749.0
    
segmental result before amortisation of 
intangible assets and exceptional items  33.7 11.4 - 45.1
Amortisation of intangible assets 9 (1.1) (0.6) - (1.7)
exceptional items 3 (14.2) - - (14.2)
interest expense    (17.1) (17.1)
interest income    0.3 0.3
Debt issue costs    (0.9) (0.9)
profit before taxation  18.4 10.8 (17.7) 11.5
t axation     (3.5)
      
Profit for the financial year from 
continuing operations attributable      
to shareholders     8.0
segmental assets  532.1 102.6 - 634.7
Total assets  532.1 102.6 - 634.7
     
segmental liabilities  334.5 52.8 - 387.3
unallocated liabilities     
 - corporate borrowings  - - 87.3 87.3
Total liabilities  334.5  52.8  87.3 474.6
Other segmental items     
capital expenditure (including acquisitions) 10 4.2 3.0 - 7.2
Depreciation  10 6.6 1.7 - 8.3
Amortisation of intangible assets  9 1.1 0.6 - 1.7
impairment of trade receivables  13 0.7 0.6 - 1.3
    
     
Notes to the Financial statements 50
Lookers plc Annual Report & Accounts 2009
Notes to the Financial statements
1. SeGMen Tal re POr Tin G (continued)
Year ended   Motor Parts  
31 december 2008  division distribution unallocated Group
 note £m £m £m £m
continuing operations
new cars  787.4   
used cars  556.8
Aftersales  301.8
revenue  1,646.0 129.9 - 1,775.9
    
segmental result before amortisation of 
intangible assets and exceptional items  25.6 8.3 - 33.9
Amortisation of intangible assets 9 (0.8) (0.6) - (1.4)
impairment of goodwill 8 (3.1) - - (3.1)
exceptional items 3 (20.0) - - (20.0)
interest expense    (21.2) (21.2) 
interest income    1.3 1.3
fair value on derivative instruments    (4.0) (4.0)
Debt issue costs    (0.4) (0.4)
loss before taxation  1.7 7.7 (24.3) (14.9) 
t axation     (1.1)
      
loss for the financial year from 
continuing operations attributable      
to shareholders     (16.0)
segmental assets  559.9 104.4 - 664.3 
unallocated assets     
 - property, plant and equipment  - - 0.5 0.5 
Total assets  559.9 104.4 0.5 664.8
     
segmental liabilities  410.1 40.1 - 450.2
unallocated liabilities     
 - corporate borrowings  - - 131.7 131.7
Total liabilities  410.1  40.1 131.7  581.9
Other segmental items     
capital expenditure (including acquisitions) 10 5.4 3.2 - 8.6
Depreciation  10 8.9 0.1 - 9.0
Amortisation of intangible assets  9 0.8 0.6 - 1.4
impairment of trade receivables  13 0.8 0.5 - 1.3
   
      
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.
        
    
company
the company’s business is to invest in its subsidiaries and, therefore, it operates in a single segment. 51
Lookers plc Annual Report & Accounts 2009
2. finance cOSTS - neT
 Group  company 
 2009 2008 2009 2008
 £m £m £m £m
interest expense    
on amounts wholly repayable within 5 years:    
interest payable on bank borrowings (11.0) (12.2) (10.6) (11.8)
interest on consignment vehicle liabilities (3.6) (8.7)                        - -
interest due to Group companies - - (1.7) (0.1)
other interest (0.2) (0.2) (0.1) (0.1)
net interest on pension schemes (note 28)  (2.3) (0.1)  (1.3) - 
interest and similar charges payable (17.1) (21.2) (13.7) (12.0)
 
interest income    
Bank interest 0.3 1.3 0.2 0.4
interest received from Group companies  -  - 5.4 5.3
net interest on pension schemes (note 28) - - - 0.1
t otal interest receivable 0.3 1.3 5.6 5.8  
    
finance costs - net (16.8) (19.9) (8.1) (6.2)  
    
    
3. PrOfiT On OrdinarY acTiviTieS BefOre TaxaTiOn    
 Group  company 
 2009 2008 2009 2008
 £m £m £m £m
the following items have been included in    
arriving at operating profit from operations:    
staff costs (note 7) 148.5 157.0 6.3 5.7
Depreciation of property, plant and equipment    
 - owned assets 7.9 8.0 0.3 0.3
 - under finance leases 0.4 1.0 - -
Amortisation of intangible assets 1.7 1.4 0.8 0.4
loss on disposal of plant and equipment - 0.2 - 
-
other operating lease rentals payable    
- property 4.3 4.3 - -
- plant & equipment 1.2 1.2 - -
net gain/(loss) on:
financial liabilities measured at amortised cost  17.8 31.4 9.8 16.2
(includes amounts shown as finance cost) 
exceptional items:
Refinance costs (6.6) - (6.6) -
loss on terminated businesses (6.2) (13.3)  (3.5)  -
integration costs - (3.3) - (1.1)
Aborted acquisition costs - (1.6) - (1.6)
other (0.5) (0.7) (0.5) (0.7)
vAt  - (0.3) - -
Reorganisation costs (0.8) -  (0.8) -
 (14.1) (19.2)     (11.4) (3.4)
interest on closed businesses (0.1) (0.8) - -
total exceptional items (14.2) (20.0) (11.4) (3.4)
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 52
Lookers plc Annual Report & Accounts 2009
Notes to the Financial statements
4. TaxaTiOn
 Group  company 
 2009  2008 2009 2008
 £m £m £m £m
current tax expense/(income)    
    
current year 3.0 (1.4) (5.7) (1.6) 
Adjustment in respect of prior years 0.3 0.3 1.1 - 
 3.3 (1.1) (4.6) (1.6)
Deferred tax expense/(income)    
    
Deferred tax 0.2 (3.1) (0.6) (0.1)
exceptional tax charge due to withdrawal of industrial buildings allowance - 7.2 - -
Adjustment in respect of prior years - (1.9) (0.3) - 
 0.2 2.2 (0.9) (0.1) 
   
total income tax expense/(income) in income statement 3.5 1.1 (5.5) (1.7)
    
 Group         company 
 2009  2008 2009 2008
 £m £m £m £m
tax on items charged to equity    
    
Deferred tax on pension liability 2.3 1.1 (0.6) 2.1
    
the tax charge was affected by the following factors:    
    
standard rate of corporation tax 28.0% 28.5% 28.0% 28.5%
inter group dividend - - 10.1% 23.9%  
 
items not allowable for taxation 6.1% (11.1)% (0.9)% (12.8)%
withdrawal of industrial buildings allowance - (48.3)% -   -
Reclassifying assets held for sale (6.4)% 10.6% - -
Adjustments to prior years’ taxation 3.0% 12.9% (4.8)% -
 30.7% (7.4)% 32.4% 39.6%
    
t he future tax charge will be affected by the levels of expenditure not deductible for taxation and any profits on sale of properties. 
     
 
3. PrOfiT On OrdinarY acTiviTieS BefOre TaxaTiOn (continued)
Services provided by the Group’s auditors
the analysis of auditors’ remuneration is as follows:
    2009 2008
Group              £m £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   0.3 0.3
t otal audit fees   0.3 0.3
t ax services   0.2 0.1
other services   1.4 0.1
t otal non-audit fees   1.6 0.2
 
fees for other non-audit services relate primarily to the refinancing exercise and the equity raising. 53
Lookers plc Annual Report & Accounts 2009
5. dividendS
                                          
    2009 2008
Group and company   £m £m
final dividend nil pence (2008: 2.42p)   - 4.4
interim dividend nil pence (2008: 1.60p)   - 2.9 
   - 7.3
the Directors do not propose a final dividend in respect of the financial year ending 31 December 2009.
6. earninGS/(lOSS) Per SHare
earnings per share for the prior year have been restated to reflect the effect of the issue of new ordinary shares in the current 
year at a price below market price.
t he calculation of earnings/(loss) per ordinary share is based on the profit on ordinary activities after taxation amounting to 
£8.0m (2008: loss £16.0m) and a weighted average number of ordinary shares in issue during the year of 286,417,558 (2008: 
208,324,184).
t he diluted earnings/(loss) per share is based on the weighted average number of shares, after taking account of the dilutive 
impact of shares under option of 7,337,396 (2008: nil). 
Adjusted earnings/(loss) per share is stated before amortisation of intangible assets, impairment of goodwill, debt issue costs and 
exceptional items and is calculated on profits of £21.0m (2008: £9.7m) for the year.
  2009  2008
 2009 earnings 2008 (loss)/earnings
 earnings per share (loss)/earnings per share
continuing operations £m p £m p
    
Basic eps
    
earnings/(loss) attributable to ordinary shareholders 8.0 2.79 (16.0) (7.68)
effect of dilutive securities - (0.07) - -
Diluted eps 8.0 2.72 (16.0)   (7.68) 
    
Adjusted eps
     
earnings/(loss) attributable to ordinary shareholders 8.0 2.79 (16.0) (7.68)
Amortisation of intangible assets  1.7 0.59 1.4 0.67
impairment of goodwill - - 3.1 1.49
Debt issue costs 0.9 0.31 - -
exceptional items (net) 14.2 4.96 20.0 9.60
tax on exceptional items (net) (3.8) (1.33) (6.0) (2.88)
exceptional tax due to withdrawal of industrial buildings allowance - - 7.2 3.46 
Adjusted eps 21.0 7.32 9.7 4.66
Notes to the Financial statements 54
Lookers plc Annual Report & Accounts 2009
Notes to the Financial statements
7. infOrMaTiOn reGardinG eMPlOYeeS    
 Group  company 
 2009 2008 2009  2008 
 £m £m £m £m
employee costs during the year
    
wages and salaries 132.5 140.7 4.9 5.0
social security costs 12.3 13.3 0.5 0.5
other pension costs 3.7 3.0 0.9 0.2
 148.5 157.0 6.3 5.7
 2009 2008 2009 2008
 no. no. no. no.
Average number employed during the year        
(including Directors)
        
productive 1,291 1,499 - -
selling and distribution 2,752 2,962 - -
Administration 1,444 1,612 103 110
 5,487 6,073 103 110
 2009 2008 2009 2008
 £m £m £m £m
Key management compensation     
 
salaries and short-term employee benefits 2.7 2.1 2.4 1.7
post-employment benefits 0.3 0.2 0.3 0.1
long-term benefits - - - -
 3.0 2.3 2.7 1.8
the key management compensation given above includes Directors.
During the year the aggregate gains made on the exercise of share options by Directors was £nil (2008: £nil). further details of 
Directors’ remuneration is included in the Directors’ Remuneration Report on pages 33 to 36.
8. GOOdwill
    
   2009 2008
Group   £m £m
cost     
As at 1 january   48.1 43.2
on acquisition   - 4.9
As at 31 December   48.1 48.1 
Aggregate impairment    
As at 1 january   3.3 0.2
impairment   - 3.1
As at 31 December   3.3 3.3
net book amount at 31 December   44.8 44.8
    
Goodwill can be allocated across the business segments as £39.5m applicable to the motor division and £5.3m applicable to 
the parts division.
During the year, the acquired goodwill was tested for impairment  in accordance with iAs 36. following the impairment test, 
no goodwill impairment charge was deemed necessary (2008: £3.1m). 55
Lookers plc Annual Report & Accounts 2009
Notes to the Financial statements
8. GOOdwill (continued)
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 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, where individual budgets are produced for all businesses 
within the Group. the key assumptions for the value in use calculations are those regarding the discount rates, growth rates and 
expected changes to selling prices and direct costs during the period and the impairment calculation is sensitive to these key 
assumptions.  Goodwill is represented by £39.5m applicable to the Motor Division and £5.3m applicable to the parts Division. 
Management estimates discount rates using pre-tax rates that reflect current market assessments of the time value of money 
and the risks specific to the cGus. the growth rates are based on industry growth forecasts.  changes in selling prices and 
direct costs are based on past practices and expectations of future changes in the market. An annual growth rate of 2.0% (2008: 
3.1%) (uK GDp) is assumed and a risk adjusted discount rate applied. the discount rate used of 8.7% (2008: 7.75%) reflects 
management’s estimate of the time value of money and the risks specific to the cGu. where cashflows in excess of 5 years are 
included in the calculation of the recoverable amount of each cGu’s goodwill, this is based on operating units which occupy 
freehold premises or leasehold premises with unexpired terms in excess of five years.
 
9. inTanGiBle aSSeTS
  customer   
 licences relationships Brands Total
Group £m £m £m £m
Acquired intangible assets    
cost  
As at 1 january 2009  4.8 11.5 6.2 22.5
Additions 0.2 - - 0.2
As at 31 December 2009 5.0 11.5 6.2 22.7
Aggregate amortisation and impairment 
As at 1 january 2009 0.9 2.4 0.8 4.1
other (0.2) - - (0.2)
charge for the year 0.9 0.6 0.2 1.7
As at 31 December 2009 1.6 3.0 1.0 5.6
net book amount at 31 December 2009 3.4 8.5 5.2 17.1
Acquired intangible assets    
cost
As at 1 january 2008 0.4 11.5 6.2 18.1
Reclassified from tangible fixed assets (note 10) 0.6 -  - 0.6
Additions 3.8 -  - 3.8                 
As at 31 December 2008 4.8 11.5 6.2 22.5 
Aggregate amortisation and impairment     
As at 1 january 2008 0.1 1.8 0.6 2.5
Reclassified from tangible fixed assets (note 10) 0.2 - - 0.2
charge for the year 0.6 0.6 0.2 1.4               
As at 31 December 2008 0.9 2.4 0.8 4.1
net book amount at 31 December 2008 3.9 9.1 5.4 18.4 56
Lookers plc Annual Report & Accounts 2009
Notes to the Financial statements
9. inTanGiBle aSSeTS (continued)
within Brands, intangible assets of £4.7m (2008: £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.
     
    licences
company £m
Acquired intangible assets
cost 
As at 1 january 2009 4.4
Additions 0.2
As at 31 December 2009 4.6
Aggregate amortisation and impairment 
As at 1 january 2009 0.6
charge for the year 0.8
other adjustments      (0.2)
As at 31 December 2009 1.2
net book amount at 31 December 2009 3.4
Acquired intangible assets 
cost 
As at 1 january 2008 -
Reclassified from tangible fixed assets (note 10)  0.6
Additions 3.8
As at 31 December 2008 4.4
Aggregate amortisation and impairment 
As at 1 january 2008 -
Reclassified from tangible fixed assets (note 10) 0.2
charge for the year 0.4
As at 31 December 2008 0.6
net book amount at 31 December 2008 3.8
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
cost 
As at 1 january 2009 136.4 50.9 11.7 13.9 21.8 234.7
Additions in year 0.5 1.3 0.3 1.7 3.4 7.2
Disposals - (1.4) (0.9) (1.5) (1.5) (5.3)
Reclassified to assets held for sale (note 16) (5.9) (1.5) - - - (7.4)
As at 31 December 2009 131.0 49.3 11.1 14.1 23.7 229.2
      
Accumulated depreciation       
As at 1 january 2009 3.7 2.8 2.9 7.5 12.0 28.9
charge for the year 0.9 0.7 0.6 2.4 3.7 8.3
Disposals    - (0.7) (0.9) (1.3) (1.4) (4.3)
Reclassified to assets held for sale (note 16) (1.2) (0.1) -    - - (1.3)
As at 31 December 2009 3.4 2.7 2.6 8.6 14.3 31.6
      
net book value at 
31 December 2009 127.6 46.6 8.5 5.5 9.4 197.6 57
Lookers plc Annual Report & Accounts 2009
Notes to the Financial statements
10.	 PROPERTY,	 PLANT	 AND	 EQUIPMENT (continued)
     fixtures, 
     fixtures, 
  long  Short  fittings, 
 freehold leasehold leasehold Plant &  tools & 
 property property property machinery equipment Total
Group £m £m £m £m £m £m
cost 
As at 1 january 2008 138.1 51.4 11.2 14.9 23.5 239.1
on acquisition 1.3 - 0.2 0.2 - 1.7
Additions in year 2.5 0.6 0.4 2.1 3.0 8.6
Disposals - - (0.1) (3.3) (4.1) (7.5)
Reclassified to assets held for sale (note 16) (5.5) (1.1) - - - (6.6)
Reclassified to intangible assets (note 9) - - -  - (0.6) (0.6)
As at 31 December 2008 136.4 50.9 11.7 13.9 21.8 234.7
      
Accumulated depreciation       
As at 1 january 2008 2.6 1.7 1.4 7.7 11.7 25.1
charge for the year 0.9 0.8 0.7 2.5 4.1 9.0
Disposals - - - (2.8) (3.8) (6.6)
impairment of assets held for sale 1.3 - - - - 1.3
impairment on closed businesses - 0.4 0.8 0.1 0.2 1.5
Reclassified to assets held for sale (note 16) (1.1) (0.1) - - - (1.2)
Reclassified to intangible assets (note 9) - - - - (0.2) (0.2)
As at 31 December 2008 3.7 2.8 2.9 7.5 12.0 28.9
net book value at 
31 December 2008 132.7 48.1 8.8 6.4 9.8 205.8
      
Assets held under finance leases, capitalised and included in plant & machinery and fixtures and fittings:  
   
 2009 2008
 £m £m
   
   
cost 0.6 0.4
Aggregate depreciation (0.4) (0.3) 
    0.2  0.1  
in accordance with if Rs 1 ‘f irst time adoption of international Reporting s tandards’, and iAs 16 ‘property, plant and 
equipment’ the Group has adopted the cost model, electing to use revaluations made under previous u K 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.   
      fixtures, fittings,
      tools &
      equipment
company      £m
      
cost      
As at 1 january 2009      1.3
Additions in year                              0.2
As at 31 December 2009      1.5
  
Accumulated depreciation
As at 1 january 2009      0.8 
charge for the year      0.3
As at 31 December 2009      1.1
  
net book value at 31 December 2009      0.4 58
Lookers plc Annual Report & Accounts 2009
Notes to the Financial statements
11.	 INVESTMENT	 IN	 SUBSIDIARIES
   
 
 2009 2008 
company  £m £m      
cost 
At 1 january and 31 December 2009   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   ferraris piston service limited  
lookers Birmingham limited  MB south limited   
fps Distribution limited Apec limited  
Dutton forshaw Motor company limited Btn t urbocharger service limited
lookers leasing limited platts harris 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
    
   2009 2008
group   £m £m
    
Goods for resale   177.1 181.3
Bulk deposits paid for vehicles on consignment   0.1 0.5
consignment vehicles   70.2 121.9 
   247.4 303.7  
10.	 PROPERTY,	 PLANT	 AND	 EQUIPMENT (continued)
      fixtures, fittings,
      tools &
      equipment
company      £m
       
cost      
As at 1 january 2008      1.7  
Additions in year      0.2  
Reclassified to intangible assets (note 9)      (0.6)                 
As at 31 December 2008      1.3
  
Accumulated depreciation      
As at 1 january 2008      0.7  
charge for the year      0.3 
Reclassified to intangible assets (note 9)      (0.2)
As at 31 December 2008      0.8
  
net book value at 31 December 2008        0.5 59
Lookers plc Annual Report & Accounts 2009
Notes to the Financial statements
in determining the recoverability of the trade receivables, the Group considers any change in the credit quality of the trade 
receivable from the date credit was initially granted up to the reporting date. the concentration of credit risk is limited due to the 
customer base being large and unrelated. Accordingly, the Directors believe that there is no further credit provision required in 
excess of the allowance for doubtful debts.
included in the allowance for doubtful debts are specific trade receivables with a balance of £270,305 (2008: £300,000) for the 
Group and £nil (2008: £nil) for the company which have been placed under liquidation.  the impairment represents the difference 
between the carrying amount of the specific trade receivable and present value of the expected liquidation dividend.
   
  2009 2008
 value of receivables  value of Receivables   
Group £m  %  £m % 
not impaired:
- neither past due nor impaired 88.7  93.1  64.1 90.4
- past due up to 3 months but not impaired 6.3  6.6  6.5 9.2
- past due 3 to 6 months 0.2  0.2  0.3 0.4
- past due 6 to 12 months 0.1  0.1  - -
 95.3  100.0  70.9 100.0
 
   
  2009 2008
 value of receivables  value of Receivables  
company £m  %  £m %
not impaired: 
- neither past due nor impaired 191.4  100.0  220.3 100.0
13.	 TRADE	 AND	 OTHER	 RECEIVABLES
	 	 	 	
 Group  company
 2009 2008 2009 2008
 £m £m £m £m
    
Amounts falling due within one year:    
t rade debtors 83.0 65.6 0.1 0.1
less: provision for impairment of receivables (1.3) (1.3)  - -
 81.7 64.3 0.1 0.1  
Amounts owed by Group undertakings - - 185.0 217.9 
other debtors 13.6 6.6 6.3 2.3 
prepayments 11.0 13.4  2.0 3.3 
 106.3 84.3   193.4 223.6
the average credit period on sales of goods is 18 days (2008: 18 days).  t rade receivables are provided for based on estimated 
irrecoverable amounts from the sale of goods, determined by reference to past default experience.
included in the Group’s trade receivable balance are debtors with a carrying amount of £7.4m (2008: £6.8m) which are past due 
at the reporting date for which the Group has not provided as there has not been a significant change in credit quality and the 
Group believes that the amounts are still considered recoverable. the Group does not hold any collateral over these balances. the 
average age of these receivables is 43 days (2008: 43 days).
Amounts owed by Group undertakings in the company balance sheet are incurred in the normal course of trading and the Directors 
consider there to be no significant credit risk.
  Group  company
  2009 2008 2009 2008
Movement in the allowance for doubtful debts  £m £m £m £m
Balance at beginning of the year  1.3 1.1 - -
Amounts written off during the year  (0.3) (0.4) - -
increase in allowance recognised in income statement  0.3 0.6 - -
Balance at the end of the year  1.3 1.3 - - 60
Lookers plc Annual Report & Accounts 2009
Notes to the Financial statements
14. OTHer financial aSSeTS
 Group  company
 2009 2008 2009 2008
 £m £m £m £m
    
investments carried at cost:
non-current
investments in subsidiaries - - 53.7 53.7
loans carried at amortised cost:
current
loans to subsidiaries - - 185.0 217.9
Disclosed in the financial statements as:
current other financial assets - - 185.0 217.9
non-current other financial assets - - 53.7 53.7
15. caSH and caSH equivalenTS
    
 Group  company
 2009 2008 2009 2008
 £m £m £m £m
    
cash at bank and in hand 12.3   2.1 20.7 8.2 
 
cash and cash equivalents comprise cash held by the Group and short-term bank deposits with an original maturity of three 
months or less.  the carrying amount of these assets approximates to their fair value.
16. aSSeTS Held fOr Sale
    
 Group  company
 2009 2008 2009 2008
 £m £m £m £m
    
Reclassified from property, plant & equipment (note 10) 9.2  5.4 - -
 
Assets held for sale comprises several freehold and long leasehold properties which are currently being marketed for resale. 
these properties are stated at the lower of net resaleable value or net book value and in the Directors’ opinion are likely to be 
realised during 2010.
17. Trade and OTHer PaYaBleS
 
 Group  company
 2009 2008 2009 2008 
 £m £m  £m £m
    
trade payables 126.5 103.2 3.8 3.3
Repurchase commitments 65.7 83.4 - -
consignment vehicle creditors 70.2 121.9 - - 
Amounts owed to Group undertakings - - 24.5 31.4 
other tax and social security payable 9.2 11.6  - 0.1 
other creditors 10.7 19.3  8.8 16.9
Accruals and deferred income 32.8  32.3 6.0 6.8
 315.1   371.7 43.1   58.5
Repurchase commitments due after more than 1 year  4.6 5.4 - -
   61
Lookers plc Annual Report & Accounts 2009
Notes to the Financial statements
18. currenT Tax liaBiliTieS
    
 Group  company
 2009 2008 2009 2008
 £m £m £m £m
    
current tax liabilities 8.8  4.5 6.0  4.8
19. BOrrOwinGS    
 Group  company
 2009 2008 2009 2008
 £m £m £m £m
    
current    
    
secured bank loans 10.4   -   10.0 -
unsecured bank loans - 10.0 -   10.0 
 10.4 10.0   10.0 10.0  
    
non-current    
    
secured bank loans 80.9   -   80.9  -
unsecured bank loans -  141.6  - 148.5  
    
total borrowings 91.3  151.6  90.9 158.5  
    
 Group  company
 2009 2008 2009 2008
 £m £m £m £m
Bank loans and overdraft repayable:    
    
less than one year 10.4 10.0 10.0   10.0
More than one year and not more than two years 10.0 10.0 10.0 10.0 
More than two years and not more than five years 70.9 131.6  70.9 138.5 
 91.3  151.6  90.9 158.5  
    
t he principal features of the Group’s borrowings are as follows:
At 31 December 2009 the Group had 2 principal bank loans:
 (i)  A loan of £90.9m which will continue until 30 April 2012. t he loan carries an interest rate of between 3.0% and 
  4.0% above li Bo R.
 (ii)  A revolving loan facility of £53m. the facility can be drawn in whole or part at any time and will continue until 30 April  
 2012.  the drawn down part of the loan carries an interest rate of between 3.0% and 4.0% above li Bo R.
t he weighted average interest rate paid during the year on the bank loans was 2.7% (2008: 5.91%).
At 31 December 2009, the Group had available £52.9m (2008: £84.0m) of undrawn committed borrowing facilities in respect of 
which all conditions precedent had been met.
the Group’s current facilities were negotiated on 29 May 2009 and updated on 26 june 2009 as a result of the equity raising 
which repaid £65m of term loans with £12.6m being applied against the revolving loan facility.
of this amount £91.3m (2008: £117.5m) is repayable in instalments up until 2012 (2008: 2010).
    
t he c ompany is jointly and severally liable under cross guarantees within the Group for bank loans and overdrafts which amounted 
to £0.4m (2008: £2.9m). 62
Lookers plc Annual Report & Accounts 2009
Notes to the Financial statements
20.	 FINANCIAL	 INSTRUMENTS	 	 	 	
Details of the significant accounting policies and methods adopted, including the criteria for recognition, the basis of measurement 
and the basis on which income and expenses are recognised, in respect of each class of financial asset, financial liability and 
equity instrument are disclosed in the accounting policy note.
 Group  company
 2009 2008 2009 2008
categories of financial instruments £m £m £m £m
financial assets
cash 12.3 2.1 20.7 8.2
loans and receivables 81.7 64.3 185.2 218.1
financial liabilities
Amortised cost 358.4 465.5 119.2 192.2
financial risk Management Objectives
the Group’s corporate treasury function manages the financial risks relating to the operations of the Group through internal risk 
reports which analyse exposures by degree and magnitude of risks. these risks include market risk (including currency risk, fair 
value interest rate risk and price risk), credit risk, liquidity risk and cash flow interest rate risk.
the Group seeks to minimise the effects of these risks, by using derivative financial instruments to hedge these risk exposures.  
the use of financial derivatives is governed by the Group’s policies approved by the Board of Directors, which provide written 
principles on foreign exchange risk, interest rate risk, credit risk, the use of financial derivatives and non-derivative financial 
instruments, and the investment of excess liquidity. compliance with policies and exposure limits is reviewed by the internal 
auditors on a continuous basis. the Group does not enter into or trade financial instruments, including derivative financial 
instruments, for speculative purposes.
the corporate treasury function reports quarterly to the Group’s banking committee, an independent body that monitors risks 
and policies implemented to mitigate risk exposures.
Market risk
the Group’s activities expose it primarily to the financial risks of changes in foreign currency exchange rates and interest rates.  
the Group enters into a variety of derivative financial instruments to manage its exposure to interest rate and foreign currency 
risk, including:
•  forward foreign exchange contracts to hedge the exchange rate risk arising on the purchase of parts;
• forward interest rates; and
• interest rate risk management.
During the course of the year there has been no change to the market risk or manner in which the Group manages its 
exposure.
foreign currency risk Management
the Group undertakes certain transactions denominated in foreign currencies, hence exposures to exchange rate fluctuations 
arise. exchange rate exposures are managed within approved policy parameters utilising forward foreign exchange contracts.
the carrying amount of the Group’s foreign currency denominated monetary assets and monetary liabilities at the reporting date 
is as follows:
 liabilities assets
 2009 2008 2009 2008
 £m £m £m £m
    
usD - - 0.8 0.6
euro - 1.0 0.2  1.0 
 
the company had no foreign currency denominated monetary assets or monetary liabilities at the reporting date (2008: same). 63
Lookers plc Annual Report & Accounts 2009
Notes to the Financial statements
20.	 FINANCIAL	 INSTRUMENTS	 (continued)
the majority of the Group’s business is carried out in sterling. however for the limited number of transactions in foreign currency 
the Group is mainly exposed to us Dollars and euros. the following table details the Group’s sensitivity to a 10% change in 
pounds sterling against the respective foreign currencies. the 10% is the rate used when reporting foreign currency risk internally 
to key management personnel and represents management’s assessment of the possible change in foreign exchange rates.  the 
sensitivity analysis of the Group’s exposure to foreign currency risk at the reporting date has been determined based on the 
change taking place at the beginning of the financial year and held constant throughout the reporting period. A positive number 
indicates an increase in profit or loss and other equity where pounds sterling strengthens against the respective currency.
 uSd impact euro impact
 Group Group  
 2009  2008 2009  2008
 £m  £m £m  £m
profit or loss -  0.1 -  -
other equity -  - -  -
interest rate risk Management
the Group and company are exposed to interest rate risk as entities in the Group borrow funds at both fixed and floating interest 
rates.  the risk is managed by the Group by maintaining an appropriate mix between fixed and floating rate borrowings, by the 
use of interest rate swap contracts.  hedging activities are evaluated regularly to align with interest rate views and defined risk 
appetite; ensuring optimal hedging strategies are applied, by either positioning the balance sheet or protecting interest expense 
through different interest rate cycles.
the Group and company’s exposures to interest rates on financial assets and financial liabilities are detailed in the liquidity risk 
management section of this note.
the sensitivity analyses below have been determined based on the exposure to interest rates at the reporting date and stipulated 
change taking place at the beginning of the financial year and held constant throughout the reporting period.  A 50 basis point 
change is used when reporting interest risk internally to key management personnel and represents management’s assessment 
of the possible change in interest rates.
  + 50 Basis Points   - 50 Basis Points
 Group  company  Group  company 
 2009 2008 2009 2008 2009 2008  2009 2008
 £m £m £m £m £m   £m £m £m
profit or loss (0.6) (0.7) - (0.8) 0.6 0.7 - 0.8
other equity (0.6) - - - 0.6 - - -
under interest rate swap contracts, the Group and company agree to exchange the difference between fixed and floating rate 
interest amounts calculated on agreed notional principal amounts. such contracts enable the Group and company to mitigate 
the risk of changing interest rates on the fair value of issued fixed rate debt held and the cash flow exposures on the issued 
variable rate debt held.  the fair value of interest rate swaps at the year end is determined by discounting the future cash flows 
using the year end curves and the credit risk inherent in the contract, and is disclosed on the next page.  the average interest 
rate is based on the outstanding balances at the start of the financial year.
credit risk Management
credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the Group.  
the Group has adopted a policy of only dealing with creditworthy counterparties and obtaining sufficient collateral where 
appropriate, as a means of mitigating the risk of financial loss from defaults. the Group’s exposure and the credit ratings of 
its counterparties is controlled by counterparty limits that are reviewed and approved by the Risk Management committee 
annually. 64
Lookers plc Annual Report & Accounts 2009
Notes to the Financial statements
20.	 FINANCIAL	 INSTRUMENTS	 (continued)
trade receivables are spread across a large number of counterparties across a large geographical area.
the Group does not have any significant credit risk exposure to any single counterparty or any group of counterparties having 
similar characteristics.  the credit risk on liquid funds and derivative financial instruments is limited because the counterparties 
are banks with high credit-ratings assigned by international credit-rating agencies.
the carrying amount of financial assets recorded in the financial statements, net of any allowances for losses, represents the 
Group’s maximum exposure to credit risk without taking account of the value of any collateral obtained.
l iquidity r isk Management
u ltimate responsibility for liquidity risk management rests with the Board of Directors, which has built an appropriate liquidity risk 
management framework for the management of the Group’s short, medium and long-term funding and liquidity management 
requirements. t he Group manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities 
by continuously monitoring forecast and actual cash flows and matching the maturity profiles of financial assets and liabilities.  
included in note 30 is a listing of additional undrawn facilities that the Group/c ompany has at its disposal to further reduce liquidity 
risk.
t he following table details the Group’s and the c ompany’s remaining contractual maturity for its non-derivative financial liabilities.  
t he tables below have been drawn up based on the undiscounted contractual maturities of the financial liabilities including 
interest that will accrue to those liabilities except where the Group/c ompany is entitled and intends to repay the liability before its 
maturity.  
	 less than  1-3 3 Months to 1-5 
 1 Month Months 1 Year Years Total
Group £m £m £m £m £m
2009 
variable interest   
rate instruments 0.4 65.6 10.0 80.9 156.9
fixed interest rate
instruments - 236.9 - - 236.9
	 0.4	 302.5	 10.0	 80.9	 393.8
2008 
variable interest   
rate instruments - 83.4 10.0 141.6 235.0
fixed interest rate
instruments - 225.1 - - 225.1
	 - 308.5 10.0 141.6 460.1
included within variable interest rate instruments in the 1 to 3 month column is an amount of £65.7m (2008: £83.4m) relating to 
repurchase commitments where the liability is only contractually due at the point where the related vehicle is sold to the end 
customer.  in this way the  Group matches the cash outflow in respect of the liability with the cash inflow from the sale.
included within fixed interest rate instruments in the 1 to 3 month column is an amount of £70.2m (2008: £121.9m) relating 
to consignment stock where the liability is contractually due for payment when the related vehicle is adopted by the Group.  
Adoption usually occurs for the purpose of selling the vehicle to the end customer at which point the cash outflow in respect of 
the liability matches the cash inflow from the sale. 65
Lookers plc Annual Report & Accounts 2009
Notes to the Financial statements
 20.	 FINANCIAL	 INSTRUMENTS	 (continued)
	 less than  1-3 3 Months 1-5 
 1 Month Months to 1 Year Years Total
company £m £m £m £m £m
2009 
variable interest 
rate instruments - - 10.0 80.9 90.9
fixed interest rate 
instruments - 28.2 - - 28.2
	 -	 28.2	 10.0	 80.9	 119.1
2008 
variable interest 
rate instruments - - 10.0 149.6 159.6
fixed interest rate
instruments - 33.7 - - 33.7
	 - 33.7 10.0 149.6 193.3
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 in note 30. 
  
21.	 PROVISIONS
	 	 	 	
  dilapidations closure costs Total
Group  £m £m £m
    
As at 1 january 2009 1.1 1.2 2.3
charged to income statement 0.1 - 0.1
utilised in year   (0.3) (0.5) (0.8)
As at 31 December 2009 0.9  0.7 1.6
provisions have been allocated between current and non-current as follows:    
    
   2009 2008
   £m £m
    
current   0.9 1.6 
non-current   0.7 0.7
   1.6 2.3 
Dilapidations
the Group operates from a number of leasehold premises under full repairing leases. the provision recognises that repairs are 
required to put the buildings back into the state of repair required under the leases. currently, these leases are expected to 
expire between 2010 and 2018. 66
Lookers plc Annual Report & Accounts 2009
Notes to the Financial statements
22. deferred TaxaTiOn    
    
Deferred tax is calculated in full on temporary differences under the liability method using a tax rate of 28% (2008: 28%). the 
movement on the deferred tax account is as shown below:    
 Group  company
 2009 2008 2009 2008
 £m £m £m £m
As at 1 january 2009 13.3 12.8  (5.9)   (3.8)
charged/(credited) to income statement (note 4) 0.2 2.2  (0.9)  (0.1)
credited to statement of Recognised income and expense (2.3) (1.7) (0.6) (2.0) 
As at 31 December 2009 11.2 13.3  (7.4) (5.9) 
    
the deferred tax 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 2009  20.6 3.2 23.8
charged to income statement  0.2 - 0.2
As at 31 December 2009  20.8 3.2 24.0
    
Deferred tax assets 
 losses  Short
 carried employee  term timing 
 forward benefits differences Total
 £m £m £m £m
As at 1 january 2009 (1.1) (7.7) (1.7) (10.5)
charged/(credited) to income statement 1.1 (0.2) (0.9) -
credited to consolidated statement of comprehensive income - (2.3) -  (2.3)
As at 31 December 2009 - (10.2) (2.6) (12.8)
    
net deferred tax liability    
As at 31 December 2009    11.2
    
As at 31 December 2008    13.3
company    
Deferred tax assets
 employee  accelerated tax 
 benefits Provisions depreciation Total
 £m £m £m £m
As at 1 january 2009 (4.5) (1.1) (0.3) (5.9)
(credited)/charged to income statement (0.1) (1.0) 0.2 (0.9)
credited to consolidated statement of comprehensive income (0.6) - - (0.6)
As at 31 December 2009 (5.2) (2.1) (0.1) (7.4) 67
Lookers plc Annual Report & Accounts 2009
Notes to the Financial statements
23. SHare caPiTal    
    
 2009   2008
Group and company Shares £m shares £m
    
Authorised    
ordinary shares of 5p each  480,000,000 24.0 270,000,000 13.5
    
Allotted, called up and fully paid 
ordinary shares of 5p each     
    
As at 1 january   181,670,573 9.1 181,089,807 9.1
Allotted on placing and placing and open offer 201,856,192 10.1 - -
Allotted under share option schemes 843 - 170  -
Allotted on scrip issue - - 580,596  - 
As at 31 December  383,527,608 19.2 181,670,573 9.1
  
Potential issues of Ordinary Shares 
options on 1,187,590 ordinary shares lapsed or were forfeited during 2009. 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  2009 2008
 price exercise number number
Year of grant pence  period (5p Shares) (5p shares)
2007 Msp 5.0  2009-2016 - 785,590
2008 psp - 2011-2018  1,619,000 2,021,000
employee ShareSave Scheme 
the employee sharesave scheme was available to all eligible employees and was based on save As You earn (sAYe) savings 
contracts with options exercisable within a period from the conclusion of a three year term as appropriate from the date of 
grant. under the terms and conditions of this scheme, for every month (up to no more than six months) an employee fails to 
contribute the agreed monthly amount determined under the rules of the scheme, the last date exercisable will be delayed 
by one month. the latest grant under the sharesave scheme was made in the year ended 2009. no further grants have been 
made under this scheme.
the total expense included within operating profit from continuing operations in respect of cash-settled payments was £nil 
(2008: £nil)
24. SHare PreMiuM    
    
Group and company    £m
As at 1 january 2008    5.6
Arising on issue of new shares    0.6
As at 1 january 2009    6.2
Arising on issue of new shares     67.4
As at 31 December 2009    73.6  68
Lookers plc Annual Report & Accounts 2009
Notes to the Financial statements
27.	 RETAINED	 EARNINGS
 Group company
     £m £m
As at 1 january 2008 81.8 38.7
net loss for the year (16.0) (2.5)
Dividends paid (7.3) (7.3)
Actuarial losses on defined benefit pension schemes (6.1) (7.3)
Deferred taxation on pension liability 1.7 2.0
As at 31 December 2008 54.1 23.6
net profit for the year 8.0 (11.4)
Actuarial losses on defined benefit pension schemes (9.4) (3.7)
Deferred taxation on pension liability 2.3 0.6
fair value on derivative instruments (0.9) (0.9)
As at 31 December 2009 54.1 8.2
Group retained earnings include £17.1m (2008: £17.1m) of non-distributable reserves relating to properties which had been 
revalued under uK GAAp, but treated as deemed cost under ifRs.
25. caPiTal redeMPTiOn reServe    
    
    
Group and company    £m
    
As at 1 january 2009 and 31 December 2009    14.6
26. OTHer reServe     
    
 Group company
     £m £m
As at 1 january 2009   (1.1) (1.1)
fair value on interest rate hedge   (0.3) -
As at 31 December 2009   (1.4) (1.1) 69
Lookers plc Annual Report & Accounts 2009
Notes to the Financial statements
The amounts recognised in the income Statements are as follows:
     2009 2008
     £m £m
current service cost     0.7 1.1
net gains on curtailments and settlements     0.3 -
t otal included in administrative expenses     1.0 1.1
interest on obligation     4.5 4.5
expected return on scheme assets     (3.2) (4.6)
t otal included in finance costs (note 2)     1.3 (0.1)
t otal defined benefit expenses     2.3 1.0
28. PenSiOnS
Pension Scheme - The lookers Pension Plan
the 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 t rustees 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 consolidated statement of comprehensive income.
the pension charge for the scheme for 2009 was £2.3m (2008: £1.0m).
A valuation update was made as at 31 December 2009 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 £79.6m at 31 December 2009. 
the fair value of assets of the scheme and the expected rates of return on each class of assets are:
  
 expected Market expected Market
 rate of return value rate of return value
 2009 2009 2008 2008
  % £m  % £m
equities 7.5 42.9 6.7 37.4 
Bonds 5.2 18.2 4.7 17.8
cash 0.5 0.3 2.0 0.3
total fair value of assets  61.4  55.5
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:   
  2009 2008 2007 2006 2005 
  £m £m £m £m £m
fair value of scheme assets  61.4 55.5 66.8  63.3 57.3
Actuarial value of scheme liabilities  (79.6) (71.6) (78.0)   (74.8) (76.5)
Deficit in the scheme  (18.2) (16.1) (11.2)   (11.5) (19.2)
Related deferred tax asset (note 22)  5.1 4.5 3.1  3.4 5.7
net pension liability  (13.1) (11.6) (8.1)  (8.1) (13.5)
experience adjustments in plan liabilities  - (4.6) - - (1.8)
experience adjustments in plan assets  5.1 (17.1) (1.1) 3.0 5.2 70
Lookers plc Annual Report & Accounts 2009
Notes to the Financial statements
28. PenSiOnS (continued)
changes in the present value of the defined benefit obligation are as follows:
 
 2009 2008
 £m £m
opening defined benefit obligation 71.6 78.0
service cost 0.7 1.1
contributions by employees 0.3 0.3
interest cost 4.6 4.5
Actuarial losses/(gains) 8.8 (9.8)
Gains on curtailments and settlements 0.3 -
Benefits paid (6.7) (2.5)
closing defined benefit obligation 79.6 71.6
changes in the fair value of scheme assets are as follows:
   
opening fair value of scheme assets 55.5 66.8
expected return 3.2 4.6
Actuarial gains/(losses) 5.1 (17.1)
contributions by employer  4.0 3.4
contributions by employees 0.3 0.3
Benefits paid (6.7) (2.5)
closing fair value of scheme assets 61.4 55.5
the actual return on scheme assets was £8.4m (2008: £12.5m loss). none of the scheme’s assets were invested in lookers plc 
or property occupied by lookers plc. in addition to the 14.4% of pensionable payroll to fund accruing pensions, the company 
contributed an additional £1.6m in 2009. the Group expects to maintain a similar level of pension contributions in 2010.
    
 2009 2008
 £m £m
Total amount of actuarial losses recognised in the consolidated Statement  
of comprehensive income in the year (3.7) (7.3)
cumulative amount of actuarial losses recognised in the consolidated 
Statement of comprehensive income at the year end (16.4) (12.7)
The major categories of scheme assets as a percentage of total 
scheme assets are as follows:
equities 69.9% 67.4%
Bonds 29.6% 32.0%
cash 0.5% 0.6% 71
Lookers plc Annual Report & Accounts 2009
Notes to the Financial statements
28. PenSiOnS (continued)
Principal actuarial assumptions at the balance sheet date (expressed as weighted averages) are as follows: 
     
       
 2009  2008
Discount rate 5.9 % 6.6 %
expected return on assets        6.8% 6.0 %
future salary increases 3.0 % 3.0 %
future pension increases 2.3 % 2.4 %
life expectancy at age 65 for:
current pensioners - males 86.3  86.3
current pensioners - females 89.2  89.2
future pensioners - males 87.2  87.2
future pensioners - females 91.6  90.0
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 79.6 71.6
scheme assets (61.4) (55.5)
Deficit 18.2 16.1
experience losses on plan liabilities - (4.6)
experience gains/(losses) on plan assets 5.1 (17.1)
the Group and company provide 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 £1.2m (2008: £1.0m).
Pension Scheme - The dutton forshaw Group Pension Plan
the Dutton forshaw Group’s pension plan “the Dutton forshaw Group pension plan”, which is a defined benefit scheme provides 
benefits based on final pensionable salary. the Dutton forshaw Group pension plan, which is a funded scheme, is administered by 
equiniti financial services 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 t rustees of the Dutton forshaw Group 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 consolidated statement of comprehensive income.
A valuation update was made as at 31 December 2009 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 is £84.5m at 31 December 2009 (2008: £73.1m). 
the fair value of assets of the scheme and the expected rates of return on each class of assets are:
  
  expected Market expected Market
  rate of return value rate of return value
  2009 2009 2008 2008
   % £m  % £m
equities  7.5% 39.4 6.7 36.7
corporate Bonds  5.85% 10.9 6.6 9.9
Gilts  4.5% 16.4 3.7 14.9
cash  0.5% 0.4 2.0   -
total fair value of assets   67.1  61.5 72
Lookers plc Annual Report & Accounts 2009
Notes to the Financial statements
28. PenSiOnS (continued)
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 is as follows:   
    2009 2008 2007
    £m £m £m
fair value of scheme assets    67.2 61.5 73.7
Actuarial value of scheme liabilities    (84.5) (73.1) (86.3)
Deficit in the scheme    (17.3) (11.6)   (12.6)
Related deferred tax asset (note 22)    4.9 3.2 3.5
net pension liability    (12.4) (8.4) (9.1)
experience adjustments in plan liabilities    - - -
experience adjustments in plan assets    5.5 (15.5) (1.0)
The amounts recognised in the income Statements are as follows:
     2009 2008
     £m £m
current service cost     0.3 0.8
net gains on curtailments and settlements     0.4 -
t otal included in administrative expenses     0.7 0.8
interest on obligation     4.6 5.0
expected return on scheme assets     (3.6) (4.8)
t otal included in finance costs (note 2)     1.0 0.2
t otal defined benefit expenses     1.7 1.0
changes in the present value of the defined benefit obligation are as follows:
 
 2009 2008
 £m £m
opening defined benefit obligation 73.1 86.3
service cost 0.3 0.8
contributions by employees 0.3 0.2
liabilities extinguished on settlements (2.2) -
losses on curtailment and settlements 0.4 -
interest cost 4.6 5.0
Actuarial losses/(gains) 11.2 (16.7)
Benefits paid (3.2) (2.5)
closing defined benefit obligation 84.5 73.1
changes in the fair value of scheme assets are as follows:
opening fair value of scheme assets 61.5 73.7
expected return 3.6 4.8
Actuarial gains/(losses) 5.5 (15.5)
contributions by employer  1.6 0.8
Assets distributed on settlements (2.2) -
contributions by employees 0.3 0.2
Benefits paid (3.2) (2.5)
closing fair value of scheme assets 67.1 61.5
t he actual return on scheme assets was £9.1m (2008: £10.7m loss). n one of the scheme’s assets were invested in l ookers plc 
or property occupied by l ookers plc.  73
Lookers plc Annual Report & Accounts 2009
Notes to the Financial statements
28. PenSiOnS (continued)
 2009 2008
 £m £m
Total amount of actuarial losses recognised in the consolidated Statement 
of comprehensive income in the year (5.7) 1.2
cumulative amount of actuarial losses recognised in the  
consolidated Statement of comprehensive income at the year end (6.9) (1.3)
The major categories of scheme assets as a percentage of total 
scheme assets are as follows:
equities 58.7% 59.7%
corporate Bonds 16.2% 16.1%
Gilts 24.5% 24.2%
cash 0.6% -
 
Principal actuarial assumptions at the balance sheet date (expressed as weighted averages) are as follows:
 2009 2008
Discount rate 5.9% 6.6%
expected return on assets 6.5% 6.0%
future salary increases 3.0% 3.0%
future pension increases 3.0% 2.9%
life expectancy at age 65 for: 
current pensioners   - males 86.3 86.2
current pensioners   - females 89.2 89.2
future pensioners   - males 87.2 87.3
future pensioners   - females 90.0 90.2
w here 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.  t he 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 period are as follows: £m £m
Defined benefit obligation 84.5 73.1
scheme assets (67.1) (61.5)
Deficit 17.4 11.6
experience losses on plan liabilities - -
experience losses on plan assets 5.5 (15.5)
29. rela Ted Par TY Tran Sac TiOn S
t he c ompany bears certain administrative costs and interest costs centrally which are recharged to the Group.  in addition, the 
c ompany charges management charges and receives dividends from its subsidiaries.  t he balances with Group undertakings are 
summarised in the table below.
 amounts owed by Group  amounts owed to Group 
 undertakings (note 13)  undertakings (note 17)
 2009 2008 2009 2008
 £m £m £m £m
Bolling investments limited 52.4 50.7 - -
DsM Autos limited 65.5 68.5 0.1 0.1
charles hurst limited 5.8 5.6 - -
charles hurst Motors limited - 0.1 - -
platts harris limited 1.0 1.4 - -
fps Distribution limited 6.2 9.8 - -
ferraris piston service limited 2.3 1.6 - -
Apec Braking limited 1.0 0.9 - -
Btn t urbocharger service limited 0.3 0.2 - -
lookers leasing limited - 0.4 - -
lookers Motor Group limited 36.9 47.1 14.1 19.5
lookers Birmingham limited 0.2 1.8 - -
MB south limited - 7.8 1.9 -
Dutton forshaw Motor company limited 12.8 21.4 7.4 10.8
Dormant companies 0.6 0.6 1.0 1.0
 185.0 217.9 24.5 31.4
Key management compensation is included in note 7. 74
Lookers plc Annual Report & Accounts 2009
Notes to the Financial statements
30. financial a SSeTS and lia Bili Tie S
t he 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 2009 and 2008 are given in note 20. t he 
Group’s other financial assets and liabilities are detailed below.
f air values
t he 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. t he fair value of the Group’s non-current provision is not materially different from its fair value.
t he Group’s other non-current financial liabilities are all subject to floating interest rates and so their fair value also approximates to 
book value.
Maturity of f inancial l iabilities
t he maturity profile of the carrying amount of the Group’s non-current financial liabilities at 31 December 2009 and 2008 are given 
in note 20.
Borrowing f acilities
t he Group has the following undrawn committed borrowing facilities available at 31 December 2009 and 2008 which expire:
 2009 2008 
 £m £m
within two to five years 52.7 84.0
the above facilities represent loans and overdrafts, for which the facilities have been confirmed.
interest rate Profile
financial assets comprise cash of £12.3m (2008: £2.1m). 
An analysis of the Group’s loans and overdrafts between fixed and floating rates is given below.
 2009 2008
 financial liabilities financial liabilities
 £m £m
fixed Rate - -
floating Rate 91.3 151.6
total 91.3 151.6
 
interest rates on the Group’s floating rate liabilities are based on the l ondon interbank rate.  At 31 December 2009 all of the Group’s bank 
loans and overdrafts are potentially exposed to re-pricing within 12 months of the balance sheet date (2008: 12 months).
f oreign c urrencies 
t he majority of the Group’s activities are transacted in sterling although some of its purchases are made in us Dollars and euros. t he 
Group manages the foreign currency risk associated with these foreign currency purchases through the use of forward contracts as a 
commercial hedge. t he Group has not sought hedge accounting under iAs 39 in respect of these contracts.
31. OPera Tin G lea Se c OMMiTMen TS - Mini Mu M lea Se Pa YMen TS
  2009  2008
  Property Plant & equipment property plant & equipment
Group  £m £m £m £m
commitments under non-cancellable  
operating leases expiring: 
within one year  7.9 1.1 6.6 0.8
within two to five years  34.5 0.9 23.0 0.6
After five years  46.9 - 42.4 -
  89.3 2.0 72.0 1.4
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. 75
Lookers plc Annual Report & Accounts 2009
trading outlets and interests 
in Major subsidiary companies
francHiSeS
Prestige Franchises
alfa romeo
cardiff
aston Martin
Belfast
Bentley
Belfast
chrysler, Jeep, dodge
Belfast
ferrari
Belfast
Honda
Bexleyheath
Derby
liverpool
nottingham
southport
warrington
Jaguar
Belfast
Glasgow
london - park Royal
Motherwell
land rover
Battersea
Belfast
Bishop’s stortford
chelmsford
colchester
Glasgow 
london - park Royal
Motherwell
lexus
Belfast
hatfield
Maserati
Belfast
Mercedes-Benz
Ashford
Brighton
canterbury
eastbourne
Gatwick
Maidstone
Redhill
tonbridge
Saab
chester 
liverpool
Smart
Brighton
Gatwick
Maidstone
tonbridge
volvo
colchester
Glasgow
Motherwell
Volume Franchises
chevrolet
liverpool
warrington
Yardley
citroën
Belfast
Blackpool
liverpool
preston
fiat
northwich
stockport
ford
Braintree
chelmsford
clacton
colchester
Macclesfield
sheffield
south woodham ferrers
sudbury
witham
Hyundai
Dundonald
Motherwell
kia
Belfast
colchester
stockport
Mazda
Motherwell
nissan
Altrincham
Belfast
chester
newtownabbey
Peugeot
Belfast
cardiff
Motherwell
newport
renault
Altrincham
Belfast
chelmsford
chester
colchester
Macclesfield
newtownabbey
newtownards
northwich
stockport
Seat
stockport
Toyota
Belfast
chelmsford
newtownabbey
Rayleigh
Romford
vauxhall
Belfast
Birkenhead
Birmingham
Blackburn
chester
Dundonald
ellesmere port
lisburn
liverpool
portadown
selly oak
speke 
st. helens
wallasey
warrington
Yardley
volkswagen
Battersea
Blackburn
Blackpool
Boston
Burnley
Darlington
lincoln
Morden
northallerton 
preston
teesside
Motorcycles
BMw
newtownabbey
Yamaha
Belfast
Tyres
Belfast - Boucher Road
Belfast - sydenham Road
coleraine
Dundonald
omagh
portadown
uSed car 
SuPerMarkeTS
Bristol
Burton-on-trent
ParTS diSTriBuTiOn
fPS 
Barking
Birmingham
Bristol 
cardiff
charlton
colchester
Glasgow
leeds
leicester
liverpool
luton
Maidstone
Manchester
newcastle
nottingham
preston
Reading
sheffield
southampton
staples corner
apec
Bristol
BTn Turbocharger
uxbridge
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 Birmingham limited
MB south limited
fps Distribution limited
Apec limited
Btn turbocharger 
service limited
Dutton forshaw Motor 
company limited
lookers leasing limited
platts harris limited
ferraris piston service limited
website: 
www.lookers.co.uk 76
Lookers plc Annual Report & Accounts 2009
Five Year Record
 Year ended Year ended Year ended Year ended Year ended
 31 December 31 December 31 December 31 December 31 december
 2005 2006 2007 2008 2009
 £m £m £m £m £m
turnover 1,231.6 1,426.7  1,680.0 1,775.9 1,749.0
profit before tax, amortisation, 
exceptional items and debt issue costs 18.0  26.4   24.5 14.0 28.3
Amortisation/impairment  (0.9)  (0.8)  (0.8) (4.5) (1.7)
net exceptional items (0.7) (4.1) (0.4) (20.0) (14.2)
fair value on derivative instruments - - - (4.0) -
Debt issue costs - (0.1)  (0.3) (0.4) (0.9)
profit/(loss) before taxation 16.4 21.4  23.0 (14.9) 11.5
taxation (4.8)  (6.8)  (6.6) (1.1) (3.5)
profit/(loss) attributable to shareholders 11.6  14.6 16.4 (16.0) 8.0
equity dividend per share* 3.05p 3.50p  4.02p 1.60p -
Basic earnings/(loss) per ordinary share 6.53p   8.13p 9.09p (7.68)p 2.79p
Adjusted earnings per ordinary share  7.54p 10.63p  9.81p 4.66p 7.32p
As at period end
shareholders’ interests
share capital 8.9 9.0  9.1 9.1 19.2
Reserves
 - non-distributable 35.2 36.4 37.8 36.8 103.1
 - distributable 46.1  58.9 64.6 37.0 37.8
net assets 90.2  104.3  111.5 82.9 160.1
*Dividends per share are based on interim dividend paid and final dividend declared for the year. 77
Lookers plc Annual Report & Accounts 2009
Notice of Meeting
incorporated in england under the companies Act 1985 Registered no. 111876
notice is heReBY Given that the one hunDReDth Annual General Meeting of lookers plc (the “company”) will be held 
at lookers plc, 776 chester Road, stretford, Manchester, M32 0Qh on thursday 27 May 2010 at 10.00am for the following 
purposes:
1. to approve and adopt the financial statements for the year ended 31 December 2009 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 2009 (Resolution 2).
3. to re-elect j. e. Brown as a Director who retires in accordance with the Articles of Association (Resolution 3).
4. t o re-elect p. M. white as a Director who retires in accordance with the Articles of Association (Resolution 4).
 Mr white’s experience in business and his contribution to the Group’s progress during his period as non-executive chairman 
form the basis of the Board’s belief to recommend his re-election as a non-executive Director. 
5. to re-appoint Deloitte llp as Auditors (Resolution 5).
6. to authorise the Directors to fix the remuneration of the Auditors (Resolution 6).
7. to authorise the Directors to generally and unconditionally, in accordance with section 551 of the companies Act 2006 to 
exercise all the powers of the company to allot relevant securities (within the meaning of the said section 551) up to an 
aggregate nominal amount of £6,400,150 (128,003,011 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 7).
8. A special Resolution, to empower the Directors to allot equity securities (as defined for the purposes of section 571 of the 
companies Act 2006 (the “Act”)) pursuant to section 551 of the Act, as if section 561(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 £958,819 (19,176,380 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 8).
9. As a special Resolution, to authorise the c ompany both generally and unconditionally to make market purchases (within the meaning 
of section 693 of the c ompanies Act 2006) of ordinary shares of 5p each in the capital of the c ompany provided that:
 (i)  the aggregate maximum nominal value of ordinary shares hereby authorised to be purchased is £1,917,638 
   (38,352,760 shares);
 
 (ii)  the minimum price which may be paid for ordinary shares is 5p per ordinary share;
  78
Lookers plc Annual Report & Accounts 2009
Notice of Meeting
 (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 l ondon stock exchange Daily o fficial l ist 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 9).
10. A special Resolution, the purpose of which is to renew the authority given at the last Annual General Meeting for the Directors to call 
general meetings on 14 days notice instead of 21 days (Resolution 10).
 
 Registered office: By order of the Board
 776 chester Road r. a. Gregson 
 stretford company secretary
 Manchester M32 0Qh 9 March 2010
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 10.00am on 25 May 2010, 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 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. A member may appoint one or more proxies to attend a Meeting of the company providing each proxy is appointed to 
exercise rights in respect of a different number of shares held by the member.
4. 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.
5. in accordance with section 325 of the companies Act 2006, the right to appoint proxies does not apply to persons nominated 
to receive information rights under section 146 of the companies Act 2006. persons who have been sent a copy of this notice 
of meeting are hereby informed, in accordance with the registered member by whom they were nominated to be appointed, 
or to have someone else appointed, as a proxy for this meeting. if they have no such right, or do not wish to exercise it, they 
may have a right under such an agreement to give instructions to the member as to the exercise of voting rights. nominated 
persons should contact the registered member by whom they were nominated in respect of these arrangements.
6. cRest members who wish to appoint a proxy or proxies through the cRest electronic proxy appointment service may do 
so by using the procedures in the cRest manual. cRest personal members or other cRest sponsored members and those 
cRest members who have appointed a voting service provider(s), should refer to their cRest sponsor or voting service 
provider(s) who will be able to take the appropriate action on their behalf.
 in order for a proxy appointment or instruction made using the cRest service to be valid, the appropriate cRest message 
(a “cRest proxy instruction”) must be properly authenticated in accordance with euroclear uK & ireland limited (formerly 
cRestco’s) specifications and must contain the information required for such instructions, as described in the cRest 
Manual. the message, regardless of whether it constitutes the appointment of a proxy or an amendment to the instruction 
given to a previously appointment proxy, must, in order to be valid, be transmitted so as to be received by the issuer’s agent 
(iD RA10) by the latest time for receipt of proxy appointments specified in this notice. for this purpose, the time of receipt 
will be taken to be the time (as determined by the timestamp applied to the message by the cRest Applications host) from 
which the registrars are able to retrieve the message by enquiry to cRest in the manner prescribed by cRest. After this 
time, any change of instructions to proxies appointed through cRest should be communicated to the appointee through 
other means.  cRest members and, where applicable, their cRest sponsors or voting service provider(s) should note that 
euroclear uK & ireland limited does not make available special procedures in cRest for any particular messages. normal 
system timings and limitations will therefore apply in relation to the input of cRest proxy instructions. it is the responsibility 
of the cRest member concerned to take (or, if the cRest member is a cRest personal member or sponsored member 
or has appointed a voting service provider(s), to procure that his cRest sponsor or voting service provider(s) take(s)) such 
action as shall be necessary to ensure that a message is transmitted by means of the cRest system by any particular time.  
in this connection, cRest members and, where applicable, their cRest sponsors or voting service providers are referred, 
in particular, to those sections of the cRest Manual concerning practical limitations of the cRest system and timings. 79
Lookers plc Annual Report & Accounts 2009
Notice of Meeting
7. the company may treat as invalid a cRest proxy instruction in the circumstances set out in Regulation 35(5)(a) of the 
uncertified securities Regulations 2001.
8. capita Registrars maintain the company’s share register. they also provide a telephone helpline service on 0871 664 0300 
calls cost 10p a minute plus network extras. lines are open from 8.30am to 5.30pm, Monday to friday. if you have any queries 
about voting or about your shareholding, please contact capita Registrars.
9. Members have the right to ask questions at the meeting in accordance with section 319A of the companies Act 2006.
10. shareholders should note that it is possible that, pursuant to requests made by them under section 527 of the companies 
Act 2006, the company may be required to publish on its website a statement setting out any matter that such shareholders 
propose to raise at the Annual General Meeting relating to the audit of the company’s accounts (including the auditor’s report 
and the conduct of the audit) that are to be laid before the Annual General Meeting.
 the company may not require the shareholders requesting any such website publication to pay its expenses in complying 
with sections 527 or 528 of the companies Act 2006. where the company is required to place a statement on its website 
under section 527 of the Act, it must forward the statement to the company’s auditor not later than the time when it makes 
the statement available on the website. the business which may be dealt with at the Annual General Meeting includes any 
statement that the company has been required under section 527 of the Act to publish on its website.
11. Members have the right (i) to require the company to give notice of a resolution to be moved at the meeting in accordance 
with section 338 of the companies Act 2006 and (ii) to require the company to include a matter in the business to be dealt 
with at the meeting in accordance with section 338A of the Act.
12. A form of proxy is enclosed for use by shareholders in respect of Resolutions 1 to 10.
13. A form of proxy must be lodged with the company’s Registrars, proxy Department, pxs, 34 Beckenham Road, Beckenham, 
BR3 4tu, not less than 48 hours before the time appointed for the holding of the Annual General Meeting or any adjourned 
Meeting. 
14. 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) Register of members of the company.
 (b) the Memorandum and Articles of Association of the company.
 (c) Details of proxies received.
 (d) terms and conditions of the appointment of Directors.
 (e) Register of Directors interests.
15. the company’s issued share capital on 9 March 2010 was 383,527,608 ordinary shares of 5p each, all shares have voting 
rights: one share one vote. 80
Lookers plc Annual Report & Accounts 2009
shareholders, Bankers and 
Professional Advisors
Share quotes
share prices of the ordinary shares are shown in 
the Financial Times and also appear in several     
other newspapers.
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 dealerships. the private 
registered shareholder negotiates his/her purchase 
of the new vehicle 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 
online, including viewing shareholdings, buying and 
selling shares online, 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 reports 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 llp 
p.o. Box 500
2 hardman street
Manchester M60 2At
Stockbrokers
numis securities limited
the london stock exchange Building
10 paternoster square
london ec4M 7lt
KBc peel hunt
111 old Broad street
london ec2M 1Ap
financial advisors
nM Rothschild & sons limited
82 King street
Manchester M2 4wQ www.lookers.co.uk
PRESTiGE
Alfa Romeo
Aston Martin
Bentley
Chrysler
Dodge
Ferrari
Honda
Jaguar
Jeep 
Land Rover
Lexus
Maserati
Mercedes-Benz
Saab
Smart
Volvo
vOLUME
Chevrolet
Citroën
Fiat
Ford
Hyundai
Kia
Mazda
Nissan
Peugeot
Renault
Seat
Toyota
Vauxhall
Volkswagen
MOTORcycLES
BMW
Yamaha
mission statement
together we will strive 
to be an outstanDing 
company achieving 
customers for life