Pendragon sees a recovery in profits
Car dealerships group Pendragon saw a recovery in profits in the three months to the end of September.
The group, which includes the Evans Halshaw, Stratstone and Car Store chains, said undelying pre-tax profit was up 819 per cent to £27,3 million compared to £3m in the same three months last year.
Group revenue was down 1.2 per cent and operating costs and interest down 9.8 per cent reflecting closures of some sites.
Pendragon, which has Evans Halshaw dealerships in Shrewsbury, Stourbridge, Walsall, Worfield and Wolverhampton, and also a Stratstone site in Wolverhampton, said that the profit in the quarter has almost entirely offset the losses incurred during the first half as a result of Covid-19, with the year to date underlying loss before tax reduced to £3.6m. For the first half of the year it made a £31m loss.
The franchised UK motor division performed ahead of expectations with performance driven by the actions taken over the past 12 months to address stock profiles, improve profit per unit, close underperforming stores and reduce the overall cost base of the Group.
Group new vehicle revenue was down 1.2% on a like-for-like basis, broadly in line with the overall market which was down 0.5 per cent. W
Group used vehicle revenue was flat on a like-for-like basis.
Chief executive Bill Berman said: "I would like to thank all our associates who have shown great professionalism in responding to the changing operating environment during the period and their hard work has been absolutely critical to our success.
"We are very pleased with the performance during the quarter, which benefitted from the changes we have made to the strategy and to the operating model over the past year.
"I am confident the business is well positioned to deliver the best result possible for the remaining months of FY20, which remain unpredictable, and beyond, and our focus remains firmly on the successful delivery of our long-term strategy."
