Vehicle dealer Pendragon warns on profits and launches review of its business

Uncertain consumers aren’t splashing out on new cars

Uncertain consumers aren’t splashing out on new cars

This is around £10m lower than Pendragon had expected for the period.

The Evans Halshaw and Stratstone owner saw first-quarter like-for-like gross profits slide 5.4% on new cars, 1.6% on used cars and 5% on aftersales, which includes servicing and repairs.

Pendragon said this was down to "challenging trading conditions" during the period. It comprises about £7m from the net impact of higher revenue and lower margins, £2m of additional operating costs and £1m from the lower-than-expected Car Store performance.

Vehicle sales have been steadily falling as nervous consumers hold off on big-ticket purchases, while new emissions regulations have also dented demand.

Dealers have reduced prices to drive an increase in sales but have seen margins hammered as a result.

Ally McCoist: Rangers are four top players away from matching Celtic
Rangers chairman Dave King says his club is to once again close to being regarded as the "dominant force in Scottish football". The club are now second in the Scottish Premiership, 11 points behind Celtic with five games remaining.

As a result, it told the London Stock Exchange today in an interim management statement: 'In light of this trading update and given the recent appointments to the business of both Mark Herbert (chief executive officer) and Mark Willis (chief financial officer), a review of the operational and financial prospects of the group is now being undertaken.

In an interim management statement for the three months to 31 March 2019, Pendragon reported a 4.6 per cent increase in like-for-like revenue.

In October 2018, the company issued a profit warning, saying that new European Union regulations on vehicles had disrupted supply.

At 0920 BST, the shares were down 5.6% to 23.74p.

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