East Mids franchised motor dealer, Pendragon, has seen profits plunge by almost 20% after new car sales throughout the UK suffered a hit.
The multi-billion-pound business that employs some 9,500 staff, released its annual returns today which show Pendragon’s profits came in at 60.4m for the year-ending 31 December 2017 – some 19.9% down on the previous year.
Pendragon, which runs the Stratstone and Evans Halshaw dealerships, had issued a profit warning last October after a decline in demand for new cars and used car price correction.
In December, the firm outlined plans to dispose of its US arm and reduce the number of franchises in its UK new car business a move that the company say will net the company over £200m.
Trevor Finn, Chief Executive, says: “The Group has a clear focus and direction to transform the business and double used revenue by 2021. This will be enabled by our market leading software business to provide the online and technology platform and by investment in increasing the used retail and aftersales representation points in the UK.
“We made further progress towards our goal of doubling used vehicle revenue with growth in the period of 15%. We anticipate our performance in 2018 to be in line with expectations.”