Pendragon results point to easing new car market

Pendragon, the UK’s largest auto retail group, has seen its 2015 underlying gross profit increase 5.0% on turnover figures up 11.3% against 2014, according to the group’s year-end financial figures. Turnover hit £4.45 billion in 2015 with gross profit of £548.9 million.

The underlying profit before tax was up £9.9 million (+16.4%), from £60.2 million to £70.1 million. The underlying operating margin was maintained at 2.3% and the underlying earnings per share up 0.6p (+19.4%), from 3.1p to 3.7p.

New car profit increased ahead of used car sales according to Pendragon’s stock market statement, and pointed out that new car sales were “beginning to ease”.

New vehicle like for like gross profit increased by £17.5 million (+12.1%), while in the past year Pendragon invested £53.1 million in its retail facilities. Used vehicles like for like gross profit was up £15.0 million (+10.9%), with like for like aftersales gross profit up by £9.7 million (+5.4%).