Car dealer Pendragon sees results at top end of range
British car dealer Pendragon Plc expects results this year at the upper end of forecasts amid signs of improvement in its tough markets, it said on Friday
By Agencies |
LONDON: British car dealer Pendragon Plc expects results this year at the upper end of forecasts amid signs of improvement in its tough markets, it said on Friday. The company, whose brands include Evans Halshaw, said net profit for each new car sold grew faster in the first quarter than in any of the previous three quarters, even as volumes fell 4 per cent. Used car sales volumes increased 2 per cent year-on-year.
"It is still unclear how large an impact credit tightening and house price falls will have on retail markets for the remainder of the year," the company said in a statement to its annual shareholders' meeting. "However the group is confident of a satisfactory outcome to the year at the upper end of expectations".
Pendragon, which sells cars ranging from Fords to Maseratis and is the UK importer for Cadillac as well as the largest dealer for Harley-Davidson Inc outside the United States, also said it expects a tax repayment of 15 million pounds ($29.6 million) this year.
The company, which has recently been the subject of takeover talk, suffered a 50 percent fall in pretax, pre-exceptional profit to 34.8 million pounds in 2007. It is forecast to post a full-year pretax profit of 44.1 million pounds for 2008, according to Reuters Estimates. Shares in Pendragon rose 2.6 per cent to 39 pence by 0755 GMT, valuing the company at 256.5 million pounds.
"It's important to be cautious, but so far so good, I'd suggest," said Mike Allen, an analyst at Panmure Gordon. "There's a bit of concern on the used car side, there's a lot of excess stock around, but they are clearly more focused on the margin, which is improving." Allen said the strong performance of the euro versus the pound this year has also affected the company, as most of its cars are made in the eurozone and sold in sterling. The euro has strengthened more than 7 percent since the start of the year.
"It is still unclear how large an impact credit tightening and house price falls will have on retail markets for the remainder of the year," the company said in a statement to its annual shareholders' meeting. "However the group is confident of a satisfactory outcome to the year at the upper end of expectations".
Pendragon, which sells cars ranging from Fords to Maseratis and is the UK importer for Cadillac as well as the largest dealer for Harley-Davidson Inc outside the United States, also said it expects a tax repayment of 15 million pounds ($29.6 million) this year.
The company, which has recently been the subject of takeover talk, suffered a 50 percent fall in pretax, pre-exceptional profit to 34.8 million pounds in 2007. It is forecast to post a full-year pretax profit of 44.1 million pounds for 2008, according to Reuters Estimates. Shares in Pendragon rose 2.6 per cent to 39 pence by 0755 GMT, valuing the company at 256.5 million pounds.
"It's important to be cautious, but so far so good, I'd suggest," said Mike Allen, an analyst at Panmure Gordon. "There's a bit of concern on the used car side, there's a lot of excess stock around, but they are clearly more focused on the margin, which is improving." Allen said the strong performance of the euro versus the pound this year has also affected the company, as most of its cars are made in the eurozone and sold in sterling. The euro has strengthened more than 7 percent since the start of the year.
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