Sunday, September 19, 2021

Pendragon performs strongly as first half results show rising revenue and profit

Pendragon, the Nottingham car retailer, has “performed strongly” in the first-half of the financial year, recording underlying profit before tax of £35.1m in comparison to a £31m loss in the same period of 2020.

The company said that significant improvements delivered in digital propositions enabled it to largely mitigate the impact of the third national lockdown in the first quarter and emerge strongly in quarter two, out-performing the market in both new and used cars. 

Pendragon further noted that strong trading performance was underpinned by the delivery of the group’s cost restructuring programme, delivering material cost savings. 

The firm reported revenues of £1.8bn in its half year results for 30 June 2021, up almost 50% on H1 last year.

Bill Berman, Chief Executive Officer, said: “The first half of the year marked another strong period of progress and growth within the business despite the impact of a nationwide lockdown in the first quarter. We exceeded our initial expectations for the half and delivered an underlying profit before tax of £35.1m.

“While we acknowledge the positive market tailwinds, much of this progress has been underpinned by our new strategy, which has resulted in significant improvements to the Group’s digital capabilities and cost savings associated with the restructure of our store estate and the improved efficiency of our operating model.

“The work undertaken to advance our online channels last year meant more than 40,000 vehicles were delivered to customers during the lock-down period alone.

“In line with the wider market, we are anticipating continued shortages in both new and used vehicle supply for the remainder of the year.

“We’re continuing to deliver on our strategy and see significant prospects for the Group to capitalise on the exciting market opportunities ahead. We remain confident that underlying profit before tax for the full year will be £55m to £60m, ensuring we stay on track to deliver our target of £85m to £90m by FY 2025.”

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