22nd Oct 2019 09:39
(Alliance News) - Pendragon PLC on Monday reported an increase in underlying profit before tax for the third quarter and said its full-year underlying loss before tax remains in line with board expectations.
The car dealer said that in the three months ended September 30, underlying profit before tax increased to GBP3.0 million from GBP1.1 million a year ago, due to "a combination of better momentum during September, improved processes and good control of costs".
Company's like-for-like revenue was down 3.6% in the quarter. Used car revenue declined 17%, while new car revenue grew 11%. The company said the growth in sales was "partially offset by lower margins from a combination of challenging economic conditions and our planned efforts to more naturally achieve manufacturer targets to minimise pre-registered vehicles".
Like-for-like aftersales revenue was up 0.7% on a like-for-like basis.
Pendragon said its like-for-like gross profit was down 4.9% for the third quarter. New car profit rose 2.0%, while used car revenue declined 17%. Aftersales gross profit was down 2.4% on the same basis.
The company said its likely full-year underlying loss before tax remains in line with expectations. However, the company added it expects economic and market conditions to be challenging, "with the ongoing uncertainty around Brexit impacting consumer confidence".
Pendragon shares were up 3.1% in London at 11.96 pence each on Tuesday morning.
By Loreta Juodagalvyte; [email protected]
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