A buying and selling replace by Pendragon has reported a “strong efficiency” within the first half of 2023, regardless of the headwinds of rising rates of interest and inflation.

The AM100 automobile supplier group expects round a.9% enhance in underlying revenue earlier than tax to c.£36.5 million, outperforming H1 2022 by £3m.

Pendragon, which operates automobile dealerships beneath the Evans Halshaw and Stratstone manufacturers, mentioned its UK Motor division carried out effectively, with robust quantity development and improved margins.

Pinewood, its supplier software program firm, and Pendragon Car Administration additionally recorded robust performances.

Whereas there are considerations about inflation and rates of interest impacting shopper sentiment, Pendragon stays resilient and expects to satisfy its revenue targets. The interim outcomes and Capital Markets Occasion are scheduled for twenty seventh September 2023.

“Pendragon has continued to carry out effectively, demonstrating the continued success of our technique,” mentioned Invoice Berman, chief government.

“Elevated gross sales throughout all divisions and better profitability greater than offset price pressures, leading to a robust money place. Whereas we anticipate excessive inflation and rates of interest to persist within the second half of the 12 months, our resilient mannequin means we’re well-placed to carry out in keeping with board’s expectations.”

Berman lately obtained long-term incentives to enhance Pendragon’s profitability, add at the very least two new automobile manufacturers to its portfolio, and to scale back its carbon footprint.

Pendragon  had already welcomed China’s largest carmaker, BYD, to its enterprise, with plans to function six BYD showrooms.

The group’s long-serving government Martin Casha will go away this autumn to take the chief government function at AM100 rival automobile supplier Marshall Motor Group, and Pendragon can be looking for a alternative chairman.

Within the buying and selling replace, Pendragon reported 18.3% like-for-like new automobile gross sales quantity development, aligning with the overall market (18.4%).

This development was supported by robust margins, with new gross revenue per unit (GPU) rising by roughly £200 year-on-year. Moreover, the Group noticed a strong 7.2% enhance in used quantity development on a like-for-like foundation, with used GPU remaining effectively above historic ranges at round £1,400 per unit.

The aftersales section additionally carried out effectively, reporting a like-for-like gross revenue development of about 14% throughout the first half. The Group’s technique to boost efficiency and unlock vital worth from the UK Motor division continues to yield constructive outcomes throughout the board.