29th Jan 2020 09:41
(Alliance News) - Motor retailer Pendragon PLC on Wednesday warned its profit for 2019 will be towards the bottom of current expectations, despite a "significantly" improved second half performance.
Pendragon said that despite weaker consumer demand, amid December's general election in the UK, the company recovered in the second half of 2019.
In the first half ended June 30, Pendragon's revenue fell by 0.8% year-on-year to GBP2.46 billion and it swung to a pretax loss of GBP134.6 million, from a GBP27.3 million profit.
The firm said in the second half however, it benefited from closing 22 underperforming units, better inventory management, and cost cuts.
Pendragon explained: "Car Store, Leasing, Pinewood and US Motor divisions all performed in line with expectations, with the challenging consumer environment in the final quarter of the year principally impacting the Franchised UK Motor division.
"Accordingly, the group's underlying pretax profit for 2019 is expected to be around the bottom end of current expectations. However, the board remains confident that the improvement in performance during the second-half puts the business on a much stronger footing as we enter 2020."
The company will release its full-year results on March 18.
Pendragon shares were 3.5% lower at 11.16 pence each in London on Wednesday morning.
By Eric Cunha; [email protected]
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