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Strategic focus on used cars helps boost Pendragon's profitability

Strategic focus on used car sales helped Pendragon grow its like-for-like revenues by 5.7% in Q3.

The dealer group issued a trading update to London Stock Exchange which reported used vehicle revenue growth accelerating to 8.3% while used gross profit rose by 0.5%.

That follows expansion of its ‘click and collect’ service, which started in its Evans Halshaw division, into its Stratstone premium brand division.

Pendragon has also expanded its Sell Your Car service to a further 12 sites this year, with rollout continuing through Q4.

“We are maintaining our marketing investment in this area, continuing to build market share,” said the company. Online visits to its and websites increased by 16% in the nine months to September 30.

Trevor Finn, chief executive, added: “Despite significant commentary on the potential negative impact of the EU Referendum, we have not experienced any noticeable change in our customers’ behaviour and we have continued to grow our business.”

He said the performance of the group is in line with expectations for the full year.

Group underlying profit increased by 6.3%. Aftersales, its largest profit contributor, recorded a 3.2% rise in gross profit on a like for like basis in Q3.

New vehicle gross profit grew by 4.2% in the period on a like for like basis.

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