Business
Q1 Trading Update & COVID-19 Update
Q1 Trading Update & COVID-19 Update.
About this update from Pinewood Technologies Group Plc
[{"type":"text","content":"\n \n Q1 Trading Update & COVID-19 Update\n (ISSUED 21 May 2020)\n \n Q1 trading performance\n \n The following trading update covers the period from the 1 January 2020 to 31 March 2020.\n The Group’s performance during the first two months of the quarter was encouraging, and demonstrated a continuation of the improving trend from the second half of FY19, with a £5.1m improvement in underlying profit before tax to the end of February compared to the same period in FY19. Trading in March had also started strongly, but was significantly impacted by nationwide lock-down measures and the subsequent closure of all the Group’s retail locations on 23 March; a key trading period for both new and used cars. It is estimated that the slow-down in trading, caused by the effects of COVID-19, impacted Group underlying profit before tax by c.£10m in the quarter, with the Franchised UK Motor division being the most affected. \n As a result of these factors, the Group recorded an underlying loss before tax of £2.3m for the quarter, an improvement of £0.5m from the Q1 FY19 underlying loss before tax of £2.8m, despite the significant negative impact of COVID-19 disruption. \n Underlying operating profit in the Franchised UK Motor division was £4.4m, a decline of £4.7m vs Q1 FY19, driven by sales volume reductions as a result of COVID-19 disruption, with like-for-like new revenue declining by 19.1% against market declines as measured by SMMT of 31% and with new gross margins broadly flat year-on-year. Further good progress with used vehicle stock management, as a result of the previously outlined self-help measures, resulted in used vehicle gross margin rates of 8.2% in the quarter (Q1 FY19: 7.2%), a continued improvement on the 7.8% achieved in the second half of FY19.\n The COVID-19 driven reduction in the Franchised UK Motor division operating profit was more than offset by a £6.0m improvement within the Car Store division, where underlying operating losses of £1.0m were recorded (Q1 FY19: £7.0m). Car Store performed in line with expectations, despite the shut-down period, as a result of the actions taken in H2 FY19 and improved gross margin performance of 8.0% in Q1 FY20 vs 7.4% in Q4 FY19.\n The underlying profit in the combination of the Pinewood, Leasing and US Motor divisions was down £1.8m vs Q1...