7:32 am, January 25, 2023
Profits last year at Pendragon are expected to be down on 2021’s performance, but ahead of analysts’ expectations.
The listed dealer group, which operates under the Evans Halshaw, Stratstone and CarStore brands, made a full-year trading update to the London Stock Exchange this morning (Jan 25).
In it, Pendragon prepared the ground for a ‘strong’ set of results due to be published on March 22.
During Q4, Pendragon saw sales of new cars grow by 4.6 per cent like for like, while used car volumes rose by 5.2 per cent.
Pendragon said that ‘as result of this performance’, 2022’s results are expected to show a pre-tax profit of £57m.
Last year was deemed to be ‘strong’, said the firm, but the result would be £26m worse than 2021’s performance.
Pendragon boss Bill Berman said: ‘We closed out the year with a positive performance in the final quarter, which saw volume growth in both new and used vehicle sales.
‘Despite the numerous challenges we have faced across our markets and in the economy at large, we performed strongly in 2022 and this shows the benefits of the improvements made across the business in recent years.
‘Whilst market challenges will persist in 2023, we enter this new year with confidence and good momentum, and we look forward to making further progress against our strategic objectives.’
The expected full-year results of £57m pre-tax profit is ahead of market expectations.
Analysts Zeus Capital said the figure is 3.1 per cent off its £55.3m forecast, while a net debt of circa £23m was around £10m better than it expected.
The full-year results, published on March 22, will represent a busy year for Pendragon.
During 2022 it suffered a cyber attack by dark web hackers, and a failed buy-out by Hedin Group.
It has started 2023 facing a £260m claim in a High Court battle, which is rumoured to be the reason why Hedin pulled out from its deal to buy Pendragon.
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