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Pendragon PLC breathes fire into its full-year guidance

The car dealing franchise group now expects underlying profit before tax to be around £80mln, up from previous guidance of £70mln or so

Pendragon Group (LSE:PDG) PLC motored 6.1% higher to 19.73p in early deals after it increased underlying profit before tax guidance for the current year.

The car dealing franchise group now expects underlying pre-tax profit to be around £80mln, up from previous guidance of £70mln or so.

The group said it has continued to perform strongly during the first two months of the final quarter of this year and while the shortfall in the supply of new vehicles persists, customer demand and order levels have continued at a higher level than last year.

Despite demand outpacing deliveries, the shortfall in October and November was lower than management had previously anticipated and performance has been supported by a strong gross profit per unit.

Pendragon added that it continues to see “robust performance” in used vehicles following the implementation of moves to drive improved gross profit per unit, underpinned by favourable market conditions. The overall group performance continues to be supported by cost and efficiency savings realised through the delivery of the strategy, management said, patting itself on the back.

“The board is confident that the group’s strategy positions it well to respond to the ongoing market uncertainty and to capitalise on any resultant opportunities,” the trading update concluded.

Read More: Pendragon PLC breathes fire into its full-year guidance

2021-12-01 04:43:00

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