Pendragon announces plan to raise over £200m

Pendragon, the Nottingham headquartered motor retailer, has outlined plans to dispose of its US arm and reduce the number of franchises in its UK new car business.

In a statement to the London Stock Exchange this morning (4 December), Pendragon said its premium brand franchise locations will be reduced over a three year period.

The company also said it has appointed an automotive adviser to sell its US motor group.

Pendragon says that these measures will net the company over £200m.

In a further move, Pendragon said it has instructed an executive search company to recruit a senior executive to lead its UK used car operations.

Trevor Finn, chief executive, said: “Following our strategic review, we have focussed on reshaping the business to accelerate transformation and ensure capital allocation is optimised across the group.

“The actions I am announcing today are a further step towards achieving our strategic objectives.

“I believe this strategy will provide more reliable and sustainable returns.”