Pendragon reports strong first half despite supply shortages

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Pendragon turned in a powerful first half efficiency with underlying pre-tax income down -4.6% to £35.1m on turnover up 1.6% to £1.8bn.

The group bought fewer automobiles however made extra money on them. New gross revenue per unit surged 59% to £2,576 and used gross revenue per unit rose 22.7% to £1,676.  New volumes fell -17.5% and used volumes -13.7% on a like-for-like foundation. Aftersales gross margin was 51.3%, up 1.8 share factors.

Whole working prices  rose by £24.2m, or 16.2%, pushed by non-repeat of presidency assist measures, elevated used automobile model advertising and marketing and better  inflation.

Its software program enterprise Pinewood noticed working revenue decline 17.9% to £5.5m on revenues up 2.5% to £12.4m attributable to elevated prices.

It mentioned buying and selling by July and August was in keeping with expectations and it anticipated new and used automobile provide shortfalls to proceed for at the least the rest of the present monetary 12 months. It had a brand new automobile order financial institution of twenty-two,000 on the finish of June.

It added that whereas the financial backdrop was difficult it anticipated to ship group underlying revenue earlier than tax in keeping with board expectations for the present monetary 12 months.

Invoice Berman, chief govt officer, mentioned: “We’ve got made a extremely encouraging begin to the 12 months which is mirrored in a powerful set of monetary outcomes and continued momentum throughout the enterprise.

“Good progress has once more been made within the supply of our technique, together with the model relaunch of our used automobile enterprise and a number of expertise releases by Pinewood.

“We’ve got remodeled our digital capabilities over the previous two years and this, mixed with vital enhancements to our operations, means we’re effectively positioned to supply our prospects the very best expertise.

“We’ve got delivered these ends in the face of difficult buying and selling circumstances in our sector attributable to provide constraints on each new and used automobiles and the impacts of inflationary pressures. We anticipate the atmosphere to stay difficult within the second half of the 12 months, nevertheless we take confidence from how we now have carried out within the final six months and anticipate to make additional optimistic progress in the direction of our long-term targets this 12 months.”

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