Shares of Altrincham-based car dealership Lookers plc rose about 10% on Thursday after it published an update on its 2020 financial results to say it expects to report underlying profit before tax of £10 million, compared to analysts’ consensus of a small loss.

“Work continues in line with plan on the group’s financial statements for the year ended 31 December 2020 and the group now expects to report underlying profit before tax of approximately £10m (2019: £4.2m),” said Lookers.

“This compares to analyst consensus of a small loss.  

“As previously reported, the board expects net debt of approximately £45m at 31 December 2020 (2019: £59.5m).

“The group’s revolving credit facility expires in March 2022 and, as previously disclosed, discussions with our banking partners are progressing.

“Net debt has significantly reduced since the year end.

In April, the group will issue a trading statement for the first quarter of 2021 and confirm the dates of its preliminary results announcement and AGM.

“The audit of the group’s financial statements for 2020 is being undertaken by the group’s new auditor, BDO LLP, and is progressing as planned.”

The UK’s Financial Reporting Council (FRC) said on March 12 it commenced an investigation into the audits by Deloitte LLP of the financial statements of Lookers plc for the years ended December 2017 and 2018.