Profits nosedive at Pendragon

Profits at Nottingham-headquarted car dealership operator Pendragon, which runs the Evans Halshaw and Strastone brands, have dropped by 42% for the six months ending June 2018.

Revenue remained flat the firm at £2.47bn, while operating profits fell sharply to £27.3m – a performance the company puts down its UK motor division.

Trevor Finn, Chief Executive “We are gaining momentum as we lead the transformation to fully online used car retailing. This will give us greater self-determination and deliver more reliable, sustainable earnings. Our industry leading software company gives us unique technology and expertise, to reformat our business model. We are also continuing to reallocate our capital into higher return areas to increase shareholder value. Underlying profit before tax was £28.4 million for the first half and we remain in line with expectations.”

Last December, the company outlined plans to dispose of its US arm and reduce the number of franchises in its UK new car business.