IS LOOKERS CASE A SIGN FCA IS GETTING TOUGH?

摘要

Share prices in the car retail sector's PLCs could slide as the threat of investigations by the Financial Conduct Authority (FCA) knocks investors' confidence. Following the announcement on June 25 that Lookers was under investigation by the FCA over control issues in its sales processes, the AM100 group's share price dropped 20% [to 53.5p). The fall compounded an ongoing decline in the group's share price, from 108p in January to 39.4p as AM went to press - its lowest since January 2010. The decline was further exacerbated by Lookers warning in early July that its earnings at the mid-year point would likely be down 25% year-on-year following a tough Q2.