22nd Oct 2020 11:57
(Alliance News) - Pendragon PLC on Thursday posted a significant increase in profit for the third quarter of 2020, highlighting the positive performance has almost entirely offset losses incurred during the first half of the year from the Covid-19 pandemic.
The motor retailer - which operates the Evans Halshaw and Stratstone dealerships as well as the Quickco and Car Store used car supermarkets - said underlying pretax profit for the three months to ended September was GBP27.3 million, up sharply from GBP3.0 million recorded in the third quarter of 2019.
The performance in the third quarter has resulted in Pendragon's year-to-date underlying pretax loss reduced to GBP3.6 million from the GBP31.0 million loss recorded for the first half of 2020, the company noted.
Pendragon said its cost reduction programmes and store closures resulted in a like-for-like cost reduction of 9.2% in the quarter. Net debt as at September-end was GBP26.9 million, down 42% from GBP46.0 million as at the end of June.
Looking ahead however, the Nottinghamshire-based company said it remains cautious about its outlook for the third quarter due to economic uncertainty, adding that as a result it will not reinstate its guidance for 2020.
Shares in Pendragon were trading 19% higher at 12.66 pence each on Thursday morning in London.
By Ife Taiwo; [email protected]
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