Pendragon first-half profits, revenue grow
By Michele Maatouk
Date: Wednesday 21 Sep 2022
(Sharecast News) - Car dealership Pendragon reported a rise in first-half pre-tax profit and revenues on Wednesday as it hailed an encouraging start to the year.
In the six months to 30 June, the owner of Evans Halshaw and Stratstone made a reported pre-tax profit of £32.9m, up 6.8% on the same period a year earlier, with revenues 1.6% higher at £1.85bn.
On an underlying basis, pre-tax profit dipped to £33.5m from £35.1m, which was broadly in line with the company's guidance. Pendragon noted underlying cost increases of £20.8m, in line with previous guidance, including a £7m increase in marketing costs to support the used car proposition and the reversal of £8.3m of government support received in HY21.
Pendragon said increased gross profits per unit in both new and used cars underpinned a 9.9% improvement in gross profit to £232.2m, despite volume declines. The company said it had overcome "the market-led reduction in sales volume in both new and used cars and the inflationary cost environment".
The group said trading in July and August remained in line with its expectations and that it still expects to deliver underlying pre-tax profit in line with board expectations for the current financial year.
Chief executive Bill Berman said: "We have made a really encouraging start to the year which is reflected in a strong set of financial results and continued momentum across the business. Good progress has again been made in the delivery of our strategy, including the brand relaunch of our used car business and multiple technology releases by Pinewood.
"We have delivered these results in the face of challenging trading conditions in our sector due to supply constraints on both new and used vehicles and the impacts of inflationary pressures. We expect the environment to remain challenging in the second half of the year, however we take confidence from how we have performed in the last six months and expect to make further positive progress towards our long-term goals this year."
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