LONDON (ShareCast) - (Sharecast News) - Car dealer Pendragon - which warned on profits last week - posted a drop in third-quarter sales and profit on Friday as it took a hit from news emissions standards.
In its results for 1 July to 25 October, the company posted a 6.4% slump in total group revenue, with like-for-like revenue down 7.2% amid a decline in UK motor used and new revenue.

LFL used revenue was down 6.3%, while new revenue slid 9.1% as the new Worldwide Harmonised Light Vehicle Test Procedure caused disruption. Meanwhile, LFL revenue in aftersales fell 2.9%.

New car gross profit was flat, while profit in the used car segment was 13.7% higher.

During the period, underlying pre-tax profit fell to £1.1m from £3m a year ago.

"Given the introduction of the WLTP legislation in the new car business and our continued investment in our used car business in new start up locations and 'used car factories', this has had a short term dilutive effect on profitability," it said, adding that it expects full year underlying pre-tax profit of around £50m, down from the £60.4m reported a year ago.

"We are encouraged by the improving used performance across the group in quarter 3 of this year and this will be a key growth area for the business in 2019."

The company had already warned earlier this month about the impact of regulatory change on the supply of new vehicles, and said that its full-year profit would drop to £50m.

Under conditions defined by EU laws, the WLTP laboratory test - introduced in September - is used to measure fuel consumption and CO2 emissions from passengers, as well as their pollutant emissions.

At 0955 BST, the shares were down 2.1% to 25.95p.

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