Pendragon’s board expects the AM100 automotive retail PLC to “comfortably outperform” its earlier expectations for 2023 after delivering a 23% rise in underlying pre-tax earnings throughout Q1.
Underlying PBT grew by round £4 million, to £23m, through the three-month interval to March 31 as robust margins have been maintained alongside a 20.1% uplift in new automotive gross sales and 14% development from its used automotive operations.
In complete, Pendragon’s Motor Division delivered an working revenue up 38.7% year-on-year to £28.3m, a buying and selling assertion printed by way of the London Inventory Alternate revealed this morning (April 15).
Analysts at Zeus Capital elevated the group’s underlying pre-tax revenue forecast for 2023 as a complete by 11.7% to £55m in gentle of the end result.
Final month Pendragon reported that the £57.6m underlying pre-tax revenue that it made in 2022 had exceeded expectations, regardless of being a 30.6% drop on 2021’s £83m earnings.
Commenting on right this moment’s Q1 efficiency assertion, chief govt Invoice Berman mentioned: “I’m delighted to report a really robust efficiency within the first quarter, which builds on the momentum we generated final 12 months from the progress with our strategic and operational initiatives.
“It’s actually encouraging to see all the Group’s divisions in development, notably when contemplating the continued challenges within the exterior working atmosphere.
“We’re seeing enhancing indicators within the manufacturing and provide of recent vehicles and we’re centered on persevering with to ship for our prospects and OEM companions within the months forward.”
Amongst Pendragon’s current challenges have been a cyber assault which finally noticed the enterprise rebuff of a $60 million ransom believed to be the most important ever demanded from a personal firm.
The episode was explored in a Information Perception characteristic within the April version of AM Journal.
Through the Q1 buying and selling interval detailed right this moment, the enterprise opened the primary of six new BYD electrical car (EV) dealerships.
Its growth with new manufacturers will go -arm-in-arm with improvement of the CarStore used automotive retail division – relaunched in 2022 – to drive ongoing development.
Throughout Q1 Pendragon achieved a brand new car gross revenue per unit (GPU) of £2,686, which was up 9.4% or £230 YoY.
Used automotive GPU was 17.7% behind Q1 2022’s £1,771 however stays above historic ranges at £1,457, the group mentioned.
In aftersales revenues grew by 20.5% like-for-like through the interval as L4L gross revenue elevated by 17.5%.
The Pendragon Automobile Administration (PVM) leasing enterprise recorded an working revenue of £5.2m (Q1 FY22: £4.9m) because the group’s software program enterprise, Pinewood, delivered working revenue development of 14.3% to £3.2m (Q1 FY22: £2.8m).
The group revealed that its working prices had elevated 5.4% on a like-for-like foundation and by 2.6% in complete throughout Q1, in the meantime.
In a buying and selling utlook assertion, Pendragon’s board mentioned that there have been “encouraging indicators of enchancment in manufacturing and provide of recent automobiles”, however added that used car provide was anticipated to stay tight for the foreseeable future.
It added: “The group stays aware of the macro-economic headwinds together with the potential for additional rate of interest rises and continued inflationary value pressures, nevertheless on account of the robust efficiency in Q1 it expects to comfortably outperform the board’s earlier expectations for FY23.”