Lookers reveals £19m hole in accounts

Grant Thornton has found Lookers, the car dealership, overstated profitability over several years by as much as £19 million.

The firm had been brought in to investigate problems at the Altrincham-based company.
Grant Thornton found areas that needed more stringent financial controls, and some “fraudulent expense claims”.

Long-term auditors Deloitte has already said that it intends to resign as auditors following publication of the 2019 results, which have been delayed due to the ongoing investigation.
A Stock Exchange statement by Lookers says £15 million of adjustments relate to incorrect and inconsistent application of policy, processes, and accounting standards. The other £4 million shortfall is due to overstate the of debtor balances, and fraudulent expense claims.