Car dealer Pendragon beats profit expectations despite lockdowns
Car dealer Pendragon said it had beaten its first half profit expectations despite the lockdowns that were in effect for much of January and February.
The London-listed firm posted profit of £35.1m, up from a loss of £31m last year. It also reported a 49 per cent hike in revenue to £1.8bn, up from £1.2bn previously.
Pendragon said that by improving its digital retail offering it was able to mitigate the impact of the lockdowns, which saw car showroom floors shut for several months.
Over the six month period it said that it had outperformed the car market, with a 42.7 per cent like-for-like increase in new cars sold topping total market growth of 39.2 per cent.
Although it acknowledged that ongoing supply chain issues had begun to cut into the availability of new cars, Pendragon said it was confident it would hit its full year target of £55m-60m profit.
Chief executive Bill Berman 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.
“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.
“In line with the wider market, we are anticipating continued shortages in both new and used vehicle supply for the remainder of the year.