Pendragon buys Scotthall BMW Leeds

Pendragon PLC is the largest independent operator of franchised motor car dealerships in the UK with a turnover of in excess of £3 billion tops the AM100.

Pendragon sells a broad range of makes of motor cars and commercial vehicles. It also has a substantial presence in the UK vehicle leasing, wholesale parts and dealer management software markets.

Pendragon became a public limited company when the vehicle division of Williams plc was de-merged in 1989, at that time operating 19 car dealerships, representing specialist and luxury franchises, in addition to a small contract hire business.

It now represents more 20 brands operating out of over 300 outlets in the UK and in California, USA.

Covering both specialist and volume brands our largest representation is with Ford and is closely followed by Vauxhall where we are the largest retailer in the UK.

The group’s specialist marques range from Maserati to Mercedes-Benz, Pendragon is the largest franchised dealer for Harley Davidson outside of the USA. It also runs the Evans Halshaw (volume brands) and Stratstone (premium brands).

Chatfields is Pendragon’s commercial van and truck business.

The focus of the business, led by Trevor Finn, is now on “bigger relationships with fewer manufacturers”. He said in February 2012: “The future will see us consolidating and remaining at the forefront of our industry.”

For many years Pendragon has been cutting back sites and staff numbers as it strives to reduce its debts and tackle its pension deficit.

In 2011 it announced a rights issue aimed at raising £70 million. It has secured new credit facilities with bankers until June 2014 conditional on the £70m being used to tackle debts.

In February 2013 full year financial results saw turnover increase by 5% to £3.63 billion and profit before tax rise by 58% from £24 million to £37.8m in 2012, which analysts believed indicated the recovery of the automotive market.

Despite the improvement in PBT and turnover, operating profit at the group was down by 13% from £78m to £67.9m.

Pendragon also appointed its new chairman with full year results. Mel Egglenton will take up the role of chairman for the group from May 22.

He succeeds Mike Davies, who will retire from the board and as chairman at the May 22, 2013 AGM after eight years as a non-executive director.

Originally founded in 1969 by Ronald and Nicholas Lancaster, the Jardine Motors Group operated as a family owned business in East Anglia representing Mercedes-Benz, Volvo, Porsche and Ferrari.

In 1981 Jardine Matheson acquired 76% of the company before taking 100% ownership in 1992.

Since then, Jardine Motors Group has expanded its operations both geographically and with the addition of further premium brands including BMW, Audi, Jaguar, Land Rover, Lexus, Volkswagen, Aston Martin, Bentley, Toyota, Maserati, Lamborghini, Mini, Smart and Honda to its portfolio.

The latest addition in McLaren, with Jardine running the brand’s flagship London showroom.

Today the Group represents 24 franchises at over 75 franchise locations, employs approximately 3,000 staff and operates under the following names: Lancaster, Scotthall, Wayside, Appleyard, Minories, Abridge and Clover Leaf Cars.

Jardine was behind the most significant deal in the AM100 since Cambria Automobiles bought Summit Auto in 2008, when in 2011 it took over Wayside Group, pushing its turnover above £1.2 billion and into the top 10 of the AM100 for the first time.

At the point of the deal, Alun Jones, Jardine Motors’ chief executive, said: "The acquisition is a major step forward in delivering our strategic plan of growing the business in the UK and developing our relationships with existing franchise partners.”

Jardine subsequently went on to to buy three Toyota dealerships in Ipswich, Colchester and Frinton-on-Sea and a Lexus dealership in Ipswich from Thorndale Investments (turnover in 2010 £33 million, 92 staff).

In August 2012 the group consolidated its presence in the East with the purchase of a Lexus and Toyota site and aftersales centre in Cambridge from Turner Motor Group.

Jones announced his retirement in December 2012 - and his successor, finance director Mark Herbert.

BMW is currently a hive of innovation, with completely new avenues for growth being explored alongside its core model range.

One of the most interesting is the new i sub-brand for its forthcoming electric vehicles - both pure electric and hybrid, which extend the brands hugely successful environmental programme that has included the Efficient Dynamics system fitted to its core range, which has led many buyers to see BMW as premium brand, but also a green brand.

This will be reflected in an extension into offering bicycles and scooters through the dealership network.

BMW is also focusing on brand loyalty in the aftermarket, including a venture to sell parts on eBay.