Pendragon on course for year

23rd Aug 2011 07:53

Strong demand for used cars helped dealership Pendragon ramp up profit 37% in the first half of the year as it continues to trade in line with company expectations for the full year.The group, which recently raised £75m from a rights issue, said pre-tax profit for six months ended 30 June increased to £18.2m from £13.3m before. Revenue fell to £1.77bn from £1.83bn in 2010. Operating profit rose to £42.5m from £39m.The owner of Stratstone and Evans Halshaw dealerships said like-for-like used-car volumes jumped 13.2% over the last year. However sales of premium models fell from the previous year with retail registrations down nearly 13%.Chief executive Trevor Finn commented, "Pendragon's encouraging performance in 2010 has continued into 2011, despite a challenging economic environment.""The success of our operational initiatives has again helped the group's performance in its aftersales and used businesses despite a challenging macro-economic environment." Net borrowings fell to £294.9m from £346.7m previously. No dividend has been recommended, but the board intends to resume paying dividends in relation to its 2012 financial year onwards, subject to a review of the group's position at that time. CJ