12:47 pm, August 6, 2013
PENDRAGON has delivered a strong performance in the first six months of 2013, with revenues up five per cent to £2.015 billion.
The UK’s number one dealer says the increased performance is down to strong sales figures and reduced debt.
Pendragon saw underlying profit before tax rise by 24 per cent to £23.6 million, while net debt was reduced by £73.4 million from June 2012 to £147.3 million.
The group achieved like-for-like gross profit improvements in the aftersales, new and used sectors, as used car performance continues to outperform the market, with like- for-like used vehicle volumes up nine per cent, while operating profits have increased by four per cent to 40.1 per cent.
In order to refinance the business, the London-based dealer also secured a seven-year £175.0 million bond and four year £145.0 million revolving credit facility in the period.
Chief executive, Trevor Finn, said: ‘The group achieved strong performance in the first half of 2013 with underlying profit up 24 per cent. The group has achieved like-for-like gross profit improvements in all motor division sectors. The Group’s used results continue to outperform the market and the used market remains a key area of strategic focus.
He added: ‘A step change reduction in debt during the period has decreased debt to below £150 million. The combination of reduced debt and the successful refinancing has ensured the group has conservative levels of borrowing and a robust balance sheet. Positive performing markets, improving operational performance and balance sheet strength has put the group on a solid platform for future growth.’
