30th Jun 2021 11:31
(Alliance News) - Pendragon PLC said Wednesday it has continued to make strong progress in the second quarter of 2021, reinstating its annual guidance but warning of supply constraints in the second half of the year.
The car dealership said it "outperformed in its new car markets and capitalised on favourable trading conditions, in particular in the used vehicle market where supply constraints and pent-up demand have increased vehicle pricing, driving higher margins."
Pendragon is now guiding for a first half underlying pretax profit of about GBP30 million compared to a GBP31.0 million loss a year before.
However, looking further ahead, the company said: "There remains continued uncertainty as we move in to the second half of 2021 with potential further disruption from Covid-19, an expected realignment of used vehicle margins and the risk of both new and used vehicle supply constraints.
"Whilst the extent of the impact of the well-publicised semi-conductor chip shortage is not yet clear, it is becoming increasingly apparent there is likely to be some restriction of supply during the second-half of 2021, with vehicle order times already being extended."
For 2021, underlying pretax profit is guided to be between GBP45 million and GBP50 million, up from GBP8.2 million in 2020.
Shares in Pendragon were 2.3% higher in London on Wednesday at 18.85 pence each.
By Paul McGowan; [email protected]
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