Pendragon pre-tax profits double to £24m

Pendragon pre-tax profits double to £24m

21/02/2012 in News, Dealer News

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Pendragon today revealed its financial results for 2011 showing a doubling of profit before tax.

Despite revenue declining slightly to £3.4bn from £3.5bn in 2010, pre-tax profit rose to £24m from £11m.

Underlying profit before tax, which excludes exceptional items, rose to £30.8m from £25.2m.

The UK's largest franchised dealer also brought its borrowings down by £80m to £246.8m at year-end.

Trevor Finn, chief executive, said: "The group has benefited from strong focus on maximising returns and tje success of self-help initiatives within its three key business sectors."

"Used car performance continues to be a high point for the group and will remain a key strategic area in 2012.

"Our internet presence is an important differentiator for Pendragon in the market and had driven our strong aftersales, used and new performance."
 

Author
Tim Rose


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Pendragon

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 its 2013 full-year financials turnover was up from £3.6 billion to £3.9bn year-on-year, with profit before tax at £44.2m compared to £36.4m. Gearing reduced from 79% to 46%, net debt from £216.4m to £139.6m.

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Turnover

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Profit before tax

profit guide

Gearing

gearing guide

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