According to new results, Nottingham-based Pendragon has made a loss before tax of £32.2m in the first half of 2019, in comparison to a £28.4m profit in the same period of 2018. The company has also highlighted a slight drop in revenue to £2.45bn.
The news comes alongside that of the stepping down of Pendragon’s Non-Executive Chairman, Chris Chambers. As a result, Non-Executive Director Bill Berman is to assume, on an interim basis, the newly created role of Executive Chairman with effect from 1 October 2019.
The company has also revealed plans to close 22 Car Store used car supermarkets and one preparation centre.
Chris Chambers, Non-Executive Chairman, said: “Whilst market conditions have been challenging in the first half of 2019 with headwinds in both the used and new car markets the Group has continued to deliver like-for-like revenue growth.
“However, there has been a material decline in the Group’s profitability principally as a result of the actions taken to address excess used car stock. We made significant progress reducing this exposure in the latter period of the first-half and we remain committed to the strategy of growth in the Group’s used car proposition.
“The business is fully focussed on maximising performance, but we expect the market to continue to be challenging during the second half of 2019.”