Pendragon reports like-for-like profit growth for 2016 Q1

Time 12:04 pm, April 28, 2016

PENDRAGON PLC, the Nottingham-based parent company of Stratstone and Evans Halshaw, has reported a pre-tax profit increase of 8.7 per cent for the first quarter of 2016.

In an Interim Management Statement for Pendragon, the UK’s leading automotive online retailer reports an increase in new, used and aftersales gross profit compared to the same period last year.

Highlights include:
·         Underlying profit before tax increased by 8.7 per cent.
·         Like-for-like gross profit increased across all main vehicle sectors
·         Aftersales gross profit increased by 1.2 per cent on a like for like basis.
·         Used gross profit increased by 4.2 per cent on a like for like basis.
·         New gross profit increased by 15.2 per cent on a like for like basis.
·         Online visits to and increased by 18.5 per cent in the period.

During the three-month period the company opened three stores in Bristol, Norwich and Peterborough and intends to acquire further sites this year to add to the nationwide footprint of over 200 retailers currently operated by Pendragon.

Trevor Finn, chief executive of Pendragon (pictured), said: ‘Our first quarter underlying profit before tax increased by 8.7 per cent, which is testament to our continued delivery of our strategy.

‘We are expecting to see growth in profitability across aftersales, used and new for the full year as we continue to benefit from favourable market conditions and further implement our winning retail initiatives.  We are expecting the Group to perform in line with expectations for the full year.’

However, the report also included a note that the company’s EBITDA ratio (earnings before interest, taxes, deductions and amortisation) is significantly below its target range of 1.0 to 1.5 and it will continue to assess the best use of funds to address this.

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