Profits improve for Pendragon
Car dealership group Pendragon has reported improved profits for the first three months of 2021.
The group includes Evans Halshaw sites in Stourbridge, Walsall and Wolverhampton; a Stratstone site in Wolverhampton and a CarStore in Shrewsbury.
Underlying pre-tax profit was up 73.1 per cent from £10.8 million in the same quarter of 2021 to £18.7m.
The group's motor division reported an £8.2m increase in operating profit to £20.4m.
New vehicle supply remained below demand during the quarter and as a result the group continued to focus on maximising the level of margins achieved per unit. New gross profit per unit at £2,456 was £975 higher than a year before.
Used vehicles volume sales were down 6.7 per cent on a like-for-like basis as supply constraints from lower new car production since 2020 impacted on availability.
Aftersales revenue and profitability grew in the period, with a five per cent increase in like-for-like revenue
Chief executive Bill Berman said: "The positive momentum in the business has continued into the first quarter of this year and I am very pleased with how we have performed. The benefits of the work we have done in the past two years to improve our operations, from vehicle sourcing through to online and in store sales practices is evident in our strong trading performance and we have seen good contributions from all parts of the group.
"While we are mindful of the pressures facing our market and our customers, we are confident in our strategy and focused on continuing to deliver profitable growth over the medium term."
