Pendragon to carry out review of company following massive losses

Time 10:38 am, April 17, 2019

CAR dealership chain Pendragon today announced a review of the business after suffering multi-million-pound losses.

Last month, the Nottingham-based company – which owns Evans Halshaw, Stratstone, Car Store, Quickco and Pinewood Technologies, plus Hornburg USA and Pendragon Vehicle Management – posted a pre-tax loss of £44.4m for 2018, with a drop in revenue as well of 2.4 per cent to £4.63bn for the year ended December 31. In 2017, it recorded a profit of £60.4m – a drop of £15m.

It has subsequently posted a £2.8m loss for the first quarter of 2019 – some £10m lower than expected – which it blamed on higher operating costs, increased losses by Car Store, and ‘challenging trading conditions’ leading to a reduction in margins.

As a result, it told the London Stock Exchange today in an interim management statement: ‘In light of this trading update and given the recent appointments to the business of both Mark Herbert (chief executive officer) and Mark Willis (chief financial officer), a review of the operational and financial prospects of the group is currently being undertaken.

‘The results of this review will be communicated to the market during June. In addition, a strategic update will be provided with the interim results.’

Its presence in the USA is already set to be wound up.

Trevor Finn retired as chief executive of Pendragon last month, with ex-Jardine Motors CEO Mark Herbert taking over.

MORE: Pendragon annual results reveal £44.4m loss in 2018

MORE: Pendragon hails appeal victory as it has conviction over ex-rental car sale overturned

MORE: Mark Herbert to succeed Trevor Finn as Pendragon chief executive 

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