2nd May 2018 10:29
LONDON (Alliance News) - Car dealer Pendragon PLC on Wednesday reported a 13.3% drop in new car revenue, worse than 12.4% drop in national new vehicle registrations.
"Our profitability in the first quarter of the year is in line with our expectations against a backdrop of an exceptionally strong comparative in the prior year and our expectations of the market conditions in the first quarter being realised," said Chief Executive Trevor Finn.
New vehicle gross profit fell by 17.6% in the quarter to March-end versus a record quarter in 2017. Used vehicle gross profit fell by 16.5%.
First quarter used vehicle revenue fell by 1.5% due to a reduction in nearly new vehicle sales. Excluding new vehicles, used vehicle revenue grew 3.1% in the period against a record comparative period. The company expects an acceleration in used car revenue in the remainder of the year due to opening of new used car stores.
Pendragon also said disposal of its US business ad premium brand franchises is proceeding as per plan. It expects performance for the remaining part of the year to be in line with expectations, given its assessment of a stronger second half versus a weak 2017 comparative.
Shares in the company were trading 5.5% lower at 28.20 pence in morning trade.
Related Shares:
PDG.L