Pendragon revs up for growth with strong first half

X The Business Desk

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Nottingham headquartered car retailer Pendragon is back in the black after a strong first half peformance.

The firm has turned a six month loss of £31m in 2020 into an underlying profit before tax of £35.1m, while revenues are up almost 50% to £1.8bn over the period.

Pendragon is attributing the upswing to “significant improvements” in its online proposition, as a well as a restructuring programme which has cut costs.

Bill Berman, chief executive Officer, said: “The first half of the year marked another strong period of progress and growth within the business despite the impact of a nationwide lockdown in the first quarter. We exceeded our initial expectations for the half and delivered an underlying profit before tax of £35.1m.

“While we acknowledge the positive market tailwinds, much of this progress has been underpinned by our new strategy, which has resulted in significant improvements to the Group’s digital capabilities and cost savings associated with the restructure of our store estate and the improved efficiency of our operating model. The work undertaken to advance our online channels last year meant more than 40,000 vehicles were delivered to customers during the lockdown period alone.

“In line with the wider market, we are anticipating continued shortages in both new and used vehicle supply for the remainder of the year. We’re continuing to deliver on our strategy and see significant prospects for the Group to capitalise on the exciting market opportunities ahead. We remain confident that underlying profit before tax for the full year will be £55m to £60m, ensuring we stay on track to deliver our target of £85m to £90m by FY 2025.”