Pendragon has performed strongly in the first-half of the financial year, recording underlying profit before tax of £35.1m (H1 FY20: Loss of £31.0m). The significant improvements delivered in digital propositions enabled the Group to largely mitigate the impact of the third national lockdown in the first quarter and emerge strongly in quarter two, out-performing the market in both new and used cars. A strong trading performance was underpinned by the delivery of the Group’s cost restructuring programme, delivering material cost savings.
The Group has continued to make strong progress with its strategy to "transform automotive retail through digital innovation and operational excellence" leading to improved efficiency and to the introduction of new digital propositions.
Bill Berman, Chief Executive Officer, said:
“The first half of the year marked another strong period of progress and growth within the business despite the impact of a nationwide lockdown in the first quarter. We exceeded our initial expectations for the half and delivered an underlying profit before tax of £35.1m.
“While we acknowledge the positive market tailwinds, much of this progress has been underpinned by our new strategy, which has resulted in significant improvements to the Group’s digital capabilities and cost savings associated with the restructure of our store estate and the improved efficiency of our operating model. The work undertaken to advance our online channels last year meant more than 40,000 vehicles were delivered to customers during the lock-down period alone.
“In line with the wider market, we are anticipating continued shortages in both new and used vehicle supply for the remainder of the year. We’re continuing to deliver on our strategy and see significant prospects for the Group to capitalise on the exciting market opportunities ahead. We remain confident that underlying profit before tax for the full year will be £55m to £60m, ensuring we stay on track to deliver our target of £85m to £90m by FY 2025.”
The full statement and results presentation can be downloaded below.
Bill Berman Pendragon PLC Tel: 01623725200
Mark Willis Pendragon PLC Tel: 01623725200
Henry Wallers Headland Tel: 07876562436
Jack Gault Headland Tel: 07799089357