Car sales driving Pendragon profits
One of Britain's biggest car dealership chains has reported soaring profits as the recovery in the country's motor industry continues apace. Recent industry figures showed UK car sales hit a six-year high in 2013.
Pendragon, which owns the Evans Halshaw brand which has dealerships in Wolverhampton, Stourbridge, Walsall and Worfield near Bridgnorth, saw revenue rise by 6% to £3.85 billion last year.
That helped underlying pre-tax profits jump by 21% to £44.2 million. Chief executive Trevor Finn said: "Continued strong performance in the used, aftersales and new sectors has generated a material step forward in profitability.
"We are very encouraged by the second half performance in aftersales which provides verification that the vehicle parc is recovering, as a result of the growth in new car sales. "
New retail volumes at the group, which also owns the Stratstone and Quicks brands, rose by 17%, while a like-for-like revenue rise of £303.5million added further sheen to the figures.
The group now intends to improve in 2014 with a four-pillar growth strategy, covering online expansion and improvement, better value, and investment in staff training and numbers.
Mr Finn added: "We are confident that 2014 will be another year of good performance, with Group performance in line with expectations for the year."
The results led Pendragon to reveal A final dividend of 0.3p per share brings the total for the year to 0.4p – a 300% increase on last year.
