19th Apr 2023 11:25
(Alliance News) - Pendragon PLC said on Wednesday its quarterly profit increase was driven by "very strong performance" across all divisons.
The Nottingham, England-based automotive retailer said its underlying pretax profit for the first three months of 2023 was up by 23% to GBP23.0 million from GBP18.7 million in the first quarter of 2022.
Pendragon reported its interest costs rose by 51.7% to GBP4.6 million, driven by increases in vehicle and bank funding costs. Nevertheless, the company's operating revenue growth of 32% to GBP37.3 million balanced out the interest cost rise, Pendragon noted, which resulted in its improved pretax profit figure.
Looking ahead, Pendragon expects to "comfortably outperform" its previous expectations for 2023 and said there are "encouraging signs of improvement" in its production and supply of new vehicles.
Chief Executive Officer Bill Berman said: "It is really encouraging to see all of the group's divisions in growth, particularly when considering the ongoing challenges in the external operating environment. We are seeing improving signs in the production and supply of new cars and we are focused on continuing to deliver for our customers and original equipment manufacturer partners in the months ahead."
Shares in Pendragon were up 11% at 19.17 pence each in London on Wednesday morning.
By Sabrina Penty; Alliance News reporter
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