Annual loss for Lookers after expenses fraud

The group, which has sites in the Black Country, Shropshire and Staffordshire, said the balance sheet blow comes after investigations had uncovered the cash fraud dating back several years, with £13.5m relating to 2018 and earlier years.

Its annual loss compares with profits of £41.9m the previous year.

Lookers had been forced to suspend its shares on July 1 after it discovered the fraud on its books and had to delay its 2019 results a number of times since March due to the ongoing investigations.

Lookers reiterated that it expects to post a "material" underlying loss in the first half of its new financial year, though it said third quarter trading was better than expected.

It sees the fourth quarter benefiting from the "full impact" of cost-cutting measures, but it will be impacted by the closure of dealerships due to the second English lockdown and ongoing restrictions.

Phil White, executive chairman of Lookers, said: "The last 12 months has been extremely challenging for Lookers with the ongoing impact of Covid-19 and the accounting issues.

"The investigation into our financial systems and accounting controls, the delay in the publication of our 2019 results and the subsequent temporary suspension of our shares have been a great disappointment."

Lookers has just launched a nationwide search to recruit 180 new apprentices for the new year. They include two in Shrewsbury, two in Wolverhampton and two in Stafford.

The announcement represents the largest ever in-take of apprentices to the programme.

The initiative, which now boasts an enrolment of 700 posts over the last three years, is seeking to recruit in a wide range of technology, manufacturing, and customer-facing roles.