Pendragon PLC PENDRAGON PLC INTERIM MANAGEMENT STATEMENT (8441C)
22 October 2020 - 5:00PM
UK Regulatory
TIDMPDG
RNS Number : 8441C
Pendragon PLC
22 October 2020
PENDRAGON PLC INTERIM MANAGEMENT STATEMENT
(ISSUED 22 October 2020)
This Interim Management Statement for Pendragon PLC covers the
period from 1 July 2020 to 30 September 2020. Unless otherwise
stated, figures quoted in this statement are for the three months
ended 30 September 2020.
-- Underlying Profit Before Tax of GBP27.3m - an increase of
GBP24.3m, (+810%), vs. Q3 2019 (GBP3.0m)
-- Like-for-like Group Revenue down 1.2% (-13.8% total reported)
-- Like-for-like Group Gross Profit up 9.8% (-2.4% total reported)
-- Like-for-like Operating Costs & Interest down 9.3% (-23.4% total reported)
The Group delivered a very strong Quarter 3 performance, with
underlying profit before tax of GBP27.3m. The profit in the quarter
has almost entirely offset the losses incurred during the first
half as a result of Covid-19, with the year to date underlying loss
before tax reduced to just GBP3.6m (H1 FY20 -GBP31.0m).
The Franchised UK Motor division performed ahead of our
expectations in the quarter, with performance driven by the actions
taken over the past 12 months to address stock profiles, improve
profit per unit, close underperforming stores and reduce the
overall cost base of the Group. The result was also supported by a
strong market for used vehicle residual values over the quarter.
Performance at Car Store continued to improve, with a 10.1% used
gross margin and an operating profit of GBP1.0m. Pinewood and PVM
also continued to perform well, with PVM in particular benefitting
from higher than expected disposals from the ending of leases that
were extended during H1 as a result of Covid-19, supported by
strong residual values.
Group New vehicle revenue was down 1.2% on a like-for-like basis
(total reported down 11.2%) in the quarter, broadly in line with
the overall market which was down 0.5%. Within this however,
Pendragon was ahead of the market in the brands that it represents,
which were down 6.0% over the same period. New Gross margins were
higher year-on-year at 6.9% (Q3 FY19: 6.3%), resulting in a
like-for-like increase in gross profit of 15.3%.
Group used vehicle revenue was flat on a like-for-like basis
(total reported down 16.7%), whilst like-for-like gross profit was
up 25.9% (total reported up 13.1%), resulting in a significantly
improved used gross margin of 9.6% (Q3 FY19: 7.3%) and reflecting
the ongoing focus on maintaining the right profile of used vehicle
stock, and gross profit per unit.
Overall gross profit for the Group was up 9.8% on a
like-for-like basis (total reported down 2.4%), with a gross margin
of 12.5% (Q3 FY19: 11.1%).
In addition to the improved gross margin performance, the
combined impact of the Group's cost reduction programmes and store
closures resulted in a like for like cost reduction of 9.2% in the
quarter and a total reported cost reduction of 24.7%.
Closing net debt at the end of September was GBP26.9m (HY20:
GBP46.0m) as a result of the Group's strong operating performance
in the quarter, combined with a continued timing benefit from
certain items, such as VAT deferrals, as previously described.
Outlook
We remain cautious about the outlook for Q4 given the ongoing
levels of macro-economic uncertainty and therefore are not
reinstating guidance for FY20 at this point.
Bill Berman, Chief Executive of Pendragon PLC, commented:
"I would like to thank all our associates who have shown great
professionalism in responding to the changing operating environment
during the period and their hard work has been absolutely critical
to our success. We are very pleased with the performance during the
quarter, which benefitted from the changes we have made to the
strategy and to the operating model over the past year. I am
confident the business is well positioned to deliver the best
result possible for the remaining months of FY20, which remain
unpredictable, and beyond, and our focus remains firmly on the
successful delivery of our long-term strategy".
Enquiries
===========
Henry Wallers Headland 07876 562436
Jack Gault Headland 07799 089357
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