Pendragon has reported that its new vehicles sales for the first five months of 2009 are in line with expectations.
At Pendragon’s annual general meeting, chairman Sir Nigel Rudd said: “We anticipated, and have seen, a gradual return to more normal markets for used car sales and our after sales business continues to perform satisfactorily.”
“We have ensured that our cost base is kept in line with activity levels in order to deliver planned cost savings this year. We have also continued to improve our working capital management routines and maintain focus on cash generation.
Rudd added that he anticipates that the UK market will remain challenging for the remainder of the year.
Expectations relating to the overall performance of Pendragon remain unchanged.
Earlier today Pendragon chief executive Trevor Finn gave an update on scrappage to BBC Radio 5 Live.
Having initially been sceptical about whether scrappage would succeed, Finn admitted it had created interest and was bringing in incremental custom for dealers, particularly among the retired population.
Asked whether the fortunes of the new car market had changed, Finn said that from the retailers' perspective the drop in demand appeared to have bottomed out.
"Arguably the worst is behind us," Finn said.