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Lookers’ Audi probe underlines importance of financial controls

Does the group's ongoing turmoil suggest cause for concern across the car retail sector?
August 26, 2020

Car dealer group Lookers (LOOK) last week announced that it was delaying its 2019 annual results for a fourth time, as it widened an investigation into its financial controls. Lookers' shares were suspended in July after auditors were unable to finalise their appraisal of its 2019 results by the Financial Conduct Authority’s (FCA) 30 June deadline.

Lookers first delayed the release of its results on 10 March after disclosing that it had “identified potentially fraudulent transactions in one of its operating divisions”. Two days later, then chief operating officer Cameron Wade’s departure from the company was announced, just a month after he had been promoted to the role from his previous position as Lookers’ Audi franchise director. 

The division in question has since been confirmed as Lookers’ Audi branch, but it is also understood that Mr Wade’s conduct is not a significant part of the investigation. “We’re aware of the situation and we would assist if we were asked for any information,” an Audi spokesperson said. Mr Wade could not be reached for comment.

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