Car retailer revs up profit guidance further

X The Business Desk

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Nottingham headquartered car retailer Pendragon has further upgraded its full year pre-tax profit guidance after a strong fourth quarter.

The company said underlying profit before tax guidance for 12 months to 31 December has been revised up from £70m to around £80m.

Pendragon said it has continued to perform strongly during the first two months of Q4 FY21 and that while the shortfall in the supply of new vehicles persists, customer demand and order levels have continued at a higher level than last year.

The company said: “Despite demand outpacing deliveries,  the shortfall in October and November was lower than we had previously anticipated and performance has been supported by a strong gross profit per unit.

“In addition, we are continuing to see robust performance in used vehicles following successful implementation of the group’s strategy, which continues to drive improved gross profit per unit, underpinned by favourable market conditions.  The overall group performance continues to be supported by cost and efficiency savings realised through the successful delivery of the strategy.”