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Pendragon happy with first half performance

The UK's biggest franchised dealer, Pendragon, today reported that its aftersales profitability and retail car sales have improved in the first half of the year.

The group's update coincides with an investor visit to Pendragon sites today.

The company, headed by chief executive Trevor Finn, will explain its strategy to grow aftersales profitability and present a number of initiatives to drive this.

As forecast, said the group, used car sales volumes have grown year on year and used car margins have stabilised.

With new cars, Pendragon said its retail car sales "are outperforming the market". Volume brand sales have stabilised following the end of scrappage, but premium brand sales continue to demonstrate the 'V' shaped recovery profile, it said.

"Our net debt levels at 30 June will be higher than expected, almost all due to new vehicle stock related to new product launches. We anticipate this will have reversed by the year end. Reduction of debt remains a top priority and is under strict control.

"Despite the economic and fiscal conditions we remain cautiously optimistic about the prospects for the remainder of 2010 and expect profitability for the year to be in line with expectations," concluded its statement.


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