Aftersales buoyant for Pendragon

10th May 2011 14:36

Car dealer Pendragon has seen an improvement in the key business metrics in the first quarter and expects this improvement to continue for the rest of the year.Aftersales remains the primary source of gross profit for the group, and gross profit margin improved by 2.8 percentage points over the prior year in the first quarter of the year, though turnover declined marginally, in line with the reduction in selling space.In the first three months of the year like for like (LFL) used car volume was up 15.6%, in contrast to the industry as a whole where, according to data from business information specialist Experian, used car sales were flat year on year.The first quarter growth rate represents an acceleration in LFL sales from the 12.1% increase achieved in 2010.In the new car segment, for the brands represented within the group's Stratstone brand, retail volume excluding scrappage rose by 2.8% in the quarter from a year earlier, while within Evans Halshaw, registrations grew by 14.2% year on year.The group's UK new car volumes performed in line with the market, and margins declined marginally as a result of higher priced vehicles predominantly within the Stratstone division, although profit per unit was maintained on the prior year levels.The California business continues to outperform 2010 during the first quarter of 2011 and this outperformance is tipped to continue during the remainder of the year."As planned, the performances in the Used and Aftersales segments have been strong in the first quarter and continue to be the key growth opportunities for the group. As expected, performance in new cars is in line with the market and this is expected to continue during 2011," the group said.---jh