Pendragon PLC PENDRAGON PLC INTERIM MANAGEMENT STATEMENT (0774W)
April 21 2021 - 1:00AM
UK Regulatory
TIDMPDG
RNS Number : 0774W
Pendragon PLC
21 April 2021
PENDRAGON PLC INTERIM MANAGEMENT STATEMENT
(ISSUED 21 April 2021)
This Interim Management Statement covers the period from 1
January 2021 to 31 March 2021. Unless otherwise stated, figures
quoted in this statement are for the three months ended 31 March
2021 and the comparative period being the three months ended 31
March 2020.
-- Underlying Profit Before Tax of GBP10.8m - an increase of
GBP13.1m vs. Q1 2020 (Loss of GBP2.3m)
-- Like-for-like Operating Profit of GBP19.5m up 68.5% (up 136.8% total reported)
-- Like-for-like Gross Profit down 0.9% (down 6.2% total reported)
-- Like-for-like Operating Costs & Interest down 11.6% (down 18.4% total reported)
The Group delivered an underlying profit before tax of GBP10.8m,
an improvement of GBP13.1m compared to the prior year, representing
a strong performance given the COVID-related restrictions in place.
All of the Group's dealerships were closed throughout the period
and reopened on 12 April 2021.
Franchised UK Motor demonstrated a high level of resilience to
these restricted trading conditions, with the omni-channel
capabilities of the Group supporting good continuity of sales
across both new and used cars, fulfilled through home delivery or
click and collect. Operating profit in Franchised UK Motor grew by
240.6% to GBP13.0m compared to Q1 FY20 and Car Store operating loss
was flat at GBP0.7m vs Q1 FY20.
In addition, our Technology and Leasing businesses also
performed strongly. Pinewood operating profit was GBP3.4m, up 13.7%
vs Q1 FY20 driven by a combination of increased user numbers and
improved gross margins. Pendragon Vehicle Management was up 35.1%
vs Q1 FY20 at GBP3.7m, with growth largely driven by improved
residual values on end of lease disposals.
The development of the Group's digital capabilities provided a
high degree of protection against the physical closure of stores,
with over 40,000 vehicles delivered in the quarter against a prior
year like-for-like comparison of approximately 45,000 vehicles.
Franchised UK New vehicle volumes were down 8.4% on a like-for-like
basis (total reported down 11.2%) in the quarter, ahead of the
overall market which was down 12.0%. Group Used volumes were down
14.2% on a like-for-like basis.
Gross margins also proved to be robust despite the challenges to
demand presented by the lock-down, with like-for-like UK new gross
profit per unit ("GPU") improving to GBP1,481 (Q1 FY20: GBP1,207),
which more than offset the lower volumes and resulted in a
like-for-like increase in new gross profit of 12.4%. Group
like-for-like used GPU was broadly flat at GBP1,095 (Q1 FY20
GBP1,103), resulting in a 14.9% reduction in Group like-for-like
used gross profit (total reported down 20.4%).
Aftersales facilities remained open during the quarter and
delivered a good performance, with like-for-like revenue down just
2.0%, and which was more than offset by improved gross margin rates
benefitting from ongoing efficiency gains, resulting in an increase
of 0.3% in like-for-like gross profit.
As a result of these movements, combined with the improvements
in both Pinewood and PVM, The Group was able to largely mitigate
the impact of the store closures, with overall like-for-like gross
profit for the Group down just 0.9% (total reported down 6.2%).
The combined impact of the Group's cost reduction programmes and
store closures resulted in a like-for-like operating cost reduction
of 10.7% in the quarter (total reported operating costs down
18.3%). Interest costs were down 19.1%.
Outlook
We remain cautiously optimistic about the outlook for the
remainder of the financial year given the ongoing levels of
macro-economic uncertainty but continue to believe the business is
well positioned to respond to any opportunities or challenges that
may arise. We continue to withhold guidance for FY21 until we have
more certainty over the economic environment.
Bill Berman, Chief Executive of Pendragon PLC, commented:
"We have delivered a strong performance in the first quarter,
demonstrating the benefits of our omni-channel offering. Building
on the progress made in 2020, our online capabilities continue to
gain momentum as we advance our strategy and this has contributed
to a resilient sales performance in the period.
"I am particularly proud of how our associates have responded to
the changing environment, displaying their commitment to deliver a
high-quality customer experience despite the difficult environment.
With the easing of COVID-19 restrictions and the reopening of
non-essential retail last week, we are delighted to be welcoming
back customers to our dealerships and we are well positioned for
the important trading period we have ahead of us."
Enquiries
===========
Henry Wallers Headland 07876 562436
Jack Gault Headland 07799 089357
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