One of Britain’s biggest dealerships blames Brexit for share price fall

One of Britain’s biggest car dealerships has had 30% of its shares fall after the firm issued a profits warning.

Lookers blames increasingly challenging trading conditions, with first-half profits down by 25% and full-year figures will also fall below forecasts.

The collapse in diesel sales after the emissions scandal and Britain’s predicted exit from the European Union. Brexit prevented a “record car market” from developing, says Lookers’ chief executive Andy Bruce.

Lookers say the recent challenging conditions will probably continue and consumer confidence at a low won’t help.

Shares in Lookers is at its lowest point since 2009, valuing at 180 million pounds.

Lookers imports from many brands, such as Volkswagen, Ford and BMW.

New car registrations in the UK fell 4.9% in June and British car production fell by 15.5% in May.

Rival dealership Pendragon also saw shares fall by 20% in June and a heap of unsold used cars. New chief executive Mark Herbert resigned just three months in.

While Lookers has outperformed the car retail market recently in the UK, the momentum is gone.

“Brexit, and the impact on exchange rates as well as consumer confidence, remains the biggest risk to the sector,” Liberum analysts say.