Pendragon PLC PENDRAGON PLC INTERIM MANAGEMENT STATEMENT (6194Q)
October 22 2019 - 2:00AM
UK Regulatory
TIDMPDG
RNS Number : 6194Q
Pendragon PLC
22 October 2019
PENDRAGON PLC INTERIM MANAGEMENT STATEMENT
(ISSUED 22 October 2019)
This Interim Management Statement for Pendragon PLC, covers the
period from 1 July 2019 to 30 September 2019. Unless otherwise
stated, figures quoted in this statement are for the three months
ended 30 September 2019.
-- Underlying Profit Before Tax of GBP3.0m - an increase of GBP1.9m vs. Q3 2018 (GBP1.1m)
-- Like-for-like Group Revenue down 3.6% (-8.0% total)
o New Revenue +11.0% L4L (+4.5% total)
o Used Revenue -16.7% L4L (-19.6% total)
o Aftersales Revenue +0.7% L4L (-4.0% total)
o Pinewood Revenue +13.9%
o Leasing Revenue +4.1%
-- Like-for-like Group Gross profit down 4.9% (-9.2% total)
o New Gross Profit +2.0% L4L (-4.1% total)
o Used Gross Profit -17.3% L4L (-21.0% total)
o Aftersales Gross Profit -2.4% L4L (-6.7% total)
o Pinewood Gross Profit +16.3%
o Leasing Gross Profit +18.1%
-- Like-for-like Operating Costs & Interest reduced by 8.0% (-10.8% total)
The Group returned to underlying profit before tax during the
quarter, with performance levels improving steadily through the
period. Good progress has been made with each of the planned
operational improvements previously disclosed. A combination of
better momentum during September, improved processes and good
control of costs, resulted in Group underlying profit before tax of
GBP3.0m, an increase of GBP1.9m against the same period in
2018.
Group like-for-like new revenue grew by 11.0%, with
like-for-like gross profit up by 2.0%. The growth in sales was
partially offset by lower margins from a combination of challenging
economic conditions and our planned efforts to more naturally
achieve manufacturer targets to minimise pre-registered
vehicles.
Used revenue declined by 16.7% on a like-for-like basis (UK
motor division down 12% and Car Store down 39% on a LFL basis).
Overall sales volumes were lower as the Group focussed on
rebuilding both the quantity and quality of the age-profile of the
stock during the period, as highlighted in September. This improved
profile resulted in used vehicle gross margin rates increasing
steadily through the period from 5.9% in July, to 7.6% in August
and then to 8.4% in September. Overall for the quarter, the gross
margin rate on used vehicles was 7.3%, in line with 2018. Gross
profit was down 17.3% on a like-for-like basis (UK motor division
down 11% and Car Store down 49% on an LFL basis) principally driven
by the lower levels of sales. The stock profile was in line with
our expectations at the end of September and is now well positioned
ahead of Q4.
The Group announced previously the planned closure of 22 Car
Store locations (out of a total of 34). Good progress has been made
with the closure programme, with the final two sites closed on 18
October 2019.
The performance in Aftersales has also stabilised during the
quarter when compared to the first half of 2019, with like-for-like
revenue growth of 0.7%. Gross profit declined by 2.4% on the same
basis, principally driven by the impact of the increased cost of
service technicians.
Pinewood has continued to perform well, delivering in line with
the Group's expectation of growth in both the UK and overseas.
Good cost control across the group resulted in a reduction of
8.0% on a like-for-like basis (total down 10.8%) of total operating
and interest costs.
Outlook
Whilst the improved performance during the period is
encouraging, we continue to expect economic and market conditions
to be challenging, with the ongoing uncertainty around Brexit
impacting consumer confidence. The full-year underlying loss before
tax remains in line with the Board's expectations.
Enquiries
===================== ===========
Howard Lee Partner Headland 0203 8054822
Henry Wallers Associate Director Headland 0203 8054822
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END
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