Business
Pendragon PLC Post-close Trading Update
Pendragon PLC Post-close Trading Update.
About this update from Pinewood Technologies Group Plc
[{"type":"text","content":"\n \n \n \n \n \n PENDRAGON PLC POST-CLOSE TRADING UPDATE \n \n \n (ISSUED 20 July 2022)\n \n \n \n \n \n Pendragon PLC (the \"Group\") today provides a post-close trading update covering the period from 1 January 2022 to 30 June 2022 and its outlook for the remainder of the year. Unless otherwise stated, figures quoted in this statement are for the six months ended 30 June 2022 and the comparative period being the six months ended 30 June 2021. \n \n \n \n \n \n The Group delivered another strong performance in the first half of FY22 and made further strategic progress towards its long-term goals, including developing its market-leading used car\n proposition and increasing marketing activity to drive brand awareness. We expect to report Group underlying profit before tax of c.£33m for the first-half of FY22 (H1 FY21: £35.1m). \n \n \n \n \n \n New vehicle volume continued to be impacted by supply constraints, with the wider market down 11.9% during the first half of the year. As a result, the Group's focus has continued to be on maximising the level of margin achieved per unit, and strengthening the already robust order bank. New gross profit per unit is higher year on year and more than outperformed the volume shortfalls. Used vehicle volumes were also down year on year as supply constraints from lower new car production continued to have a knock-on impact on used car availability. Used gross profit per unit also remained strong; although, as anticipated, this has been lower than the exceptional levels seen in H2 FY21. The strategic improvements we continue to make have more than offset the lower volume achieved compared to H1 FY21. Aftersales revenue and profitability were both higher than the prior year.\n \n \n \n \n \n The increase in UK Motor gross profits, combined with a strong performance in the leasing business, were offset by an increase in underlying operating costs of approximately £20m, which included the impact of previously guided items including: an £8.3m impact from the removal of government support, an increase of approximately £7m in marketing costs, including the relaunch and TV promotion of the Car Store brand, together with inflationary cost pressures, particularly in labour and utility costs. Cost pressures were part...