24th Mar 2021 15:40
(Alliance News) - Pendragon PLC on Tuesday reported a drop in revenue for 2020, and signalled caution for the current year as the car industry continues to face disruption.
The Nottingham-based car dealer's revenue fell 35% to GBP2.92 billion from GBP4.51 billion in 2019. Its pretax loss narrowed however, to GBP29.6 million from GBP114.1 million. Goodwill impairments amounted to GBP12.5 million in 2020, trimmed from GBP102.4 million in 2019.
Shares in the company were down 4.9% at 17.60 pence each in London on Wednesday afternoon.
Pendragon said its performance in the second half was stronger than the first. In the first-half, dealerships were forced to close because of the pandemic.
Trading in January and February 2021 was more resilient than in the first UK national lockdown, after the company improved its online sales capability.
But Pendragon remains "cautious about the shorter-term economic outlook as government support is gradually withdrawn". It also said there may be short-term constraints in new vehicle supply.
"We are confident the improvements made to our business model over the past year leave us well positioned to navigate this period and accelerate our strategy during the course of the year and beyond," Chief Executive Bill Berman said.
By Ivan Edwards; [email protected]
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