"We continue to focus on our strategic priorities and the reallocation of our capital into the areas we see as providing the strongest long-term growth. We have seen strong performance in used cars in the second half of the year, with the transformation of preparation facilities and processes now embedded in our Car Stores. We anticipate this will carry on into 2019 and beyond as our new Car Store businesses further boost our used car growth.
New car sales have been subdued and consumer confidence has been adversely affected in the period by macro newsflow. However, our Software business is continuing to win market share and has now deployed systems in twelve overseas countries. Our Leasing business has grown profitability with a stable base of vehicles under management."
Double used car revenue - by 2021
- Invested in and launched carstore.com website in December 2018.
- Recruited a Used Car Director to manage the operation and roll out of used Car Stores.
- Opened three purpose built Car Stores and converted four former new car franchised dealerships to Car Stores.
- Opened four used car refurbishment factories to industrialise this process. Strong used car profitability in the second half of 2018.
US Motor Group - disposal
- Completed the first disposal of a franchise in the US. Further disposals are well progressed.
Premium Brand Franchises - investment discipline
- As part of our committed three year plan to reduce the capital deployed in this area, we have sold six premium brand franchises (including two in February 2019) and agreed lower capital expenditure levels.
- This has released £46.7 million of capital comprising consideration and capital expenditure avoided.
Software - global growth
- Good progress growing our Software as a Service ('SaaS') licences to international users. In 2018 we have implemented the software into customers with an addressable user base of over 1,600 (2017: 729).
- Our overseas activities now encompass twelve countries of which Germany, Norway, Sweden, Switzerland, Thailand and Philippines were added in 2018.
- As previously announced, Trevor Finn, will retire from the role of Chief Executive of Pendragon on 31 March 2019. Mark Herbert joined Pendragon on 4 March 2019 as Chief Executive designate and will be appointed to the Board as Chief Executive on 1 April 2019.
- As previously announced, Tim Holden, Finance Director, will step down on 31 March. His successor, Mark Willis, will take up the role of Chief Finance Officer and join the Board on 8 April 2019.