29th Sep 2020 10:35
(Alliance News) - Pendragon PLC on Monday said the global pandemic hurt the car sales business in the first half of 2020 but is encouraged by the first few months of trading following the relaxing of restrictions.
The Nottingham-based automotive retailer posted a pretax loss of GBP52.0 million for the half year ended ended June 30, narrowing from GBP134.6 million a year prior. Operating expenses more than halved to GBP160.6 million from GBP348.2 million a year before. What's more, Pendragon took a charge of GBP102.4 million for one-time items a year ago, versus just GBP41.4 million in the recent half.
On an underlying basis, Pendragon's pretax loss narrowed to GBP31.0 million from GBP32.2 million a year before.
Revenue halved to GBP1.22 billion from GBP2.46 billion a year before. From these sales, Pendragon made gross profit of GBP135.3 million, down from GBP235.2 million.
"Pendragon has demonstrated strong operational resilience despite the unprecedented circumstances brought about by the Covid-19 pandemic," the company said.
The company said that the pandemic did however have a material impact on the group's financial performance, with that hit estimated to be approximately GBP44.1 million.
The company did not declare an interim dividend, the same as last year.
Chief Executive Bill Berman said: "We've been encouraged by the first few months of trading following reopening and, while the outlook for the remainder of the year remains uncertain, we are confident the operational improvements we have made leave us well-positioned for the long-term."
Pendragon shares were up 5.8% at 7.90 pence each on Tuesday morning in London.
By Greg Roxburgh; [email protected]
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