9:44 am, February 13, 2018
PARENT company of Evans Halshaw and Stratstone, Pendragon PLC, saw profits fall in 2017.
The company reported that underlying profit before tax was down to £60.4 million, by £15 million, compared to the previous year due to a reduction in new revenue and a reduced margins in the third quarter.
Pendragon reported in its full year results that revenue in new car sales had fallen by 4.9 per cent. It was worst hit in the third quarter when this fell by eight per cent.
Like-for-like used revenues were up in 2017 by 15.8 per cent, accounting for more than half of the group’s UK motor revenue at £2,125.5 million. This meant that overall business in the year 2017 grew by four per cent compared to 2016.
The group credited part of its used car growth to investment in used retail points. It opened seven over 2017 in Amersham, Coventry, Dartford, Glasgow, Gloucester, Reading and Sunbury, bringing its total to 27. It now expects to open four more in the first half of 2018.
Aftersales revenues also grew 6.5 per cent to £350.6 million. Leasing revenues saw impressive growth of 39 per cent with operating profit up £4.8 million.
Revenue in Pendragon’s software business Pinewood grew by 9.7 per cent, like-for-like, to £15.8 million. The group expects this to grow again in 2018.
Chief executive Trevor Finn said: ‘The group has a clear focus and direction to transform the business and double used revenue by 2021. This will be enabled by our market leading software business to provide the online and technology platform and by investment in increasing the used retail and aftersales representation points in the UK.
‘We made further progress towards our goal of doubling used vehicle revenue with growth in the period of 15 per cent. We anticipate our performance in 2018 to be in line with expectations.’
In the full year announcement, the board of Pendragon says that it believes ‘the UK market for used vehicle sales will continue to grow.
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