A buying and selling replace by Pendragon has reported a “sturdy efficiency” within the first half of 2023, regardless of the headwinds of rising rates of interest and inflation.

The AM100 automotive seller group expects round a.9% improve in underlying revenue earlier than tax to c.£36.5 million, outperforming H1 2022 by £3m.

Pendragon, which operates automotive dealerships beneath the Evans Halshaw and Stratstone manufacturers, mentioned its UK Motor division carried out properly, with robust quantity development and improved margins.

Pinewood, its seller software program firm, and Pendragon Automobile Administration additionally recorded robust performances.

Whereas there are issues about inflation and rates of interest impacting client sentiment, Pendragon stays resilient and expects to fulfill its revenue targets. The interim outcomes and Capital Markets Occasion are scheduled for twenty seventh September 2023.

“Pendragon has continued to carry out properly, demonstrating the continued success of our technique,” mentioned Invoice Berman, chief government.

“Elevated gross sales throughout all divisions and better profitability greater than offset value pressures, leading to a robust money place. Whereas we count on excessive inflation and rates of interest to persist within the second half of the yr, our resilient mannequin means we’re well-placed to carry out in step with board’s expectations.”

Berman not too long ago acquired long-term incentives to enhance Pendragon’s profitability, add at the least two new car manufacturers to its portfolio, and to cut back its carbon footprint.

Pendragon  had already welcomed China’s largest carmaker, BYD, to its enterprise, with plans to function six BYD showrooms.

The group’s long-serving government Martin Casha will depart this autumn to take the chief government position at AM100 rival automotive seller Marshall Motor Group, and Pendragon can also be in search of a substitute chairman.

Within the buying and selling replace, Pendragon reported 18.3% like-for-like new car gross sales quantity development, aligning with the whole market (18.4%).

This development was supported by robust margins, with new gross revenue per unit (GPU) rising by roughly £200 year-on-year. Moreover, the Group noticed a strong 7.2% improve in used quantity development on a like-for-like foundation, with used GPU remaining properly above historic ranges at round £1,400 per unit.

The aftersales section additionally carried out properly, reporting a like-for-like gross revenue development of about 14% through the first half. The Group’s technique to boost efficiency and unlock vital worth from the UK Motor division continues to yield optimistic outcomes throughout the board.