AM Online

Pendragon shows pre-tax profits doubled at half year point

Trevor Finn

Pendragon's interim financial results show pre-tax profit from the first six months of trading this year nearly doubled to £33.2m from £16.7m the year before.

The UK's largest car dealer also increased its revenue by £54.2m or 2.7% to £2.07 billion during the first half of its financial year, primarily driven by growth within the used and new vehicle departments.

On a like-for-like basis, revenue increased by £102.5m. Underlying pre-tax profit was £32.8m, up 39% from £23.6m.

The largest contributory factor to the overall increase in profitability was the used car department, where Pendragon grew gross profit by £9.1 million on a like for like basis.

New car and aftersales like for like gross profit rose by £6.7 million and £3.1 million respectively, and the car dealer group said it increased gross margin by 30 basis points, to 12.9%, in the period, largely as a result of stronger margin from the used and new vehicle departments.

Chief executive Trevor Finn (pictured) said: "Strong performance in our used, aftersales and new departments generated growth in underlying profit before tax of 39%. The internet transformation of our business continues to yield sizeable benefits for the group, as website visitors grew by 16.2%.

"The balance sheet, combined with our strong cash flow, now gives us the flexibility to invest in our national footprint.

"We are increasingly confident that we are positioning Pendragon for the future: to be number one on the internet; leverage our superior IT systems; complete our national footprint to increase customer touch-points, and offer customers value for money."

Click here for Pendragon's full statement to London Stock Exchange.

 



If you are not a registered user your comment will go to AM for approval before publishing. To avoid this requirement please register or login.

Comment as guest


Login  /  Register

Comments

No comments have been made yet.