Pendragon PLC Pendragon Trading Update (5793E)
October 19 2018 - 2:00AM
UK Regulatory
TIDMPDG
RNS Number : 5793E
Pendragon PLC
19 October 2018
PENDRAGON PLC TRADING UPDATE (ISSUED 19 October 2018)
The introduction of Worldwide Harmonised Light Vehicle Test
Procedure ("WLTP") has created disruption in new car sales and
uncertainty over new vehicle supply. UK New Car market data for the
month of September showed a decline of 20% in new car registrations
and a similar trend has continued in October demonstrating the
impact of WLTP.
This has caused significant new vehicle supply disruption which
gives us cause for concern over the coming months for new vehicle
sales and profitability. This will clearly have an effect on the
Group.
During the year we have continued to invest in our Used Car
business in new start up locations and transformation costs. As
announced at the half year we commenced the roll out of our "used
car factories" for the refurbishment of used inventory. This
accelerated investment is being made in spite of the short term
dilutive effect and the significant costs incurred, latest data
gives us encouragement for the future growth of this part of the
business.
As a result of the combination of these factors our underlying
profit before tax for 2018 is expected to be GBP50m.
Pendragon will publish our Q3 Interim Management Statement on 26
October 2018
Enquiries
==================== ================
Trevor Finn Chief Executive Pendragon PLC 01623 725114
Tim Holden Finance Director Pendragon PLC 01623 725114
Gordon Simpson Partner Finsbury 0207 2513801
Philip Walters Managing Director Finsbury 0207 2513801
================ ==================== ================ ==============
Notes to editors
Impact of Worldwide Harmonised Light Vehicle Test Procedure
("WLTP")
WLTP became effective on 1 September 2018. This new testing
regime has resulted in disruption in vehicle supply with, in some
cases, oversupply of vehicles which are not desirable and
undersupply of desirable vehicles.
Explanation of WLTP (Source: SMMT)
From 1 September, all cars sold in the EU have to undergo a new
test called the Worldwide Harmonised Light Vehicle Test Procedure
(WLTP). The test measures all regulated emissions, as well as CO2
and fuel economy. Like the old test it replaces, it is conducted in
controlled laboratory conditions for consistency across every test
and every new vehicle in every country. However, it is conducted at
faster speeds, over a longer distance and is more dynamic, with a
greater range of vehicle and engine speeds, engine load, gear
changes and temperatures, while also taking into account modern
vehicle technology. And, because it is based upon some half a
million miles of real driving data, it is far closer to the
conditions most people experience on the road today.
In addition, new cars will also need to prove their air quality
credentials 'on the road' by passing the new Real Driving Emissions
(RDE) test. This rigorous test, which takes around four days to
complete, is supplementary to WLTP and uses specially calibrated
state-of-the-art portable emissions measurement (PEMS) equipment.
This very sensitive equipment analyses the trace tailpipe emissions
of pollutants while the car is driven in a wide range of both
every-day and extreme conditions, from stop-start inner-city, to
open road driving, and even at rarely, if ever, encountered speeds
of 100mph and altitudes equivalent to Ben Nevis.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
TSTMMMMGKLLGRZG
(END) Dow Jones Newswires
October 19, 2018 02:00 ET (06:00 GMT)
Pendragon (LSE:PDG)
Historical Stock Chart
From Apr 2024 to May 2024
Pendragon (LSE:PDG)
Historical Stock Chart
From May 2023 to May 2024