Business
Post-close Trading Update
Post-close Trading Update.
About this update from Pinewood Technologies Group Plc
[{"type":"text","content":"\n\n \nPENDRAGON PLC\nPOST-CLOSE TRADING UPDATE\n(ISSUED 20 July 2023)\n \nPendragon PLC (the \"Group\") today provides a post-close trading update covering the period from 1 January 2023 to 30 June 2023 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 2023 and the comparative period being the six months ended 30 June 2022. \n \nThe Group delivered another robust performance in the first half of FY23, with growth in gross profit more than offsetting the underlying pressures of interest rate rises and ongoing cost inflation. As a result, the Group expects to report a c.9% increase in underlying profit before tax to c.£36.5m for the first half of FY23 (H1 FY22: £33.5m). \n \nThe UK Motor division continued to perform well during the first half of FY23. The Group delivered strong volume growth in new vehicles, which were up 18.3% on a like-for-like basis, outperforming the wider retail market which was up 1.7%, and in line with the total market which was up 18.4%. This volume growth was underpinned by strong margins, with new gross profit per unit (\"GPU\") c.£200 higher year-on-year. The Group also recorded strong used volume growth, up 7.2% on a like-for-like base, supported by used GPU remaining well above historic levels at c.£1,400 per unit. Aftersales also continued to perform well, recording like-for-like gross profit growth of c.14% during the first half. The Group continues to see benefits from its strategy to improve performance and unlock significant value from UK Motor, with a strong performance across the division.\n \nPinewood (the Group's dealer management software business) and Pendragon Vehicle Management (the Group's leasing business) also performed strongly in the first half, with both divisions delivering operating profit growth in excess of 10% year-on-year. These performances, combined with the increase in UK Motor gross profits, more than offset approximately £15m of cost pressure from the combined impact of cost inflation and higher interest rates. The Group remains focused on opportunities to mitigate cost and interest rate pressures.\n \nGroup adjusted net cash as at 30 June was c.£40m (31 December 22: net debt of £23.3m).\n&nbs...