Pendragon (PDG)

Sector:

Retailers

Index:

FTSE Small Cap

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10.76p
   
  • Change Today:
      0.100p
  • 52 Week High: 28.45
  • 52 Week Low: 10.26
  • Currency: UK Pounds
  • Shares Issued: 1,396.94m
  • Volume: 133,716
  • Market Cap: 150.31m
  • RiskGrade: 355

Pendragon swings to full-year loss amid 'subdued' new car sales

By Michele Maatouk

Date: Tuesday 12 Mar 2019

LONDON (ShareCast) - (Sharecast News) - Car dealership Pendragon said on Tuesday that it swung to a full-year loss as revenues declined amid 'subdued' new car sales.
In the year to 31 December 2018, the company suffered a pre-tax loss of £44.4m versus a profit of £65.3m the year before. Total revenue was down 2.4% during the year to £4.63bn, with like-for-like sales 1.3% lower.

Underlying pre-tax profit declined 20.9% to £47.8m.

Revenue in the used car segment was down 2.4%, while new car sales were 3.8% lower but still outperformed the UK market, which was down 6.8% in 2018, with UK new revenue down 5.2% on a LFL basis.

Gross profit in the used car business was up 4.9%, but profit in the new car segment fell 8.3% following continuing margin pressure in the premium sector.

The company cut its dividend per share to 1.50p from 1.55p a year earlier and said that its share buyback programme has been paused.

Chief executive Trevor Finn said: "We continue to focus on our strategic priorities and the reallocation of our capital into the areas we see as providing the strongest long-term growth. We have seen strong performance in used cars in the second half of the year, with the transformation of preparation facilities and processes now embedded in our car stores. We anticipate this will carry on into 2019 and beyond as our new car store businesses further boost our used car growth.

"New car sales have been subdued and consumer confidence has been adversely affected in the period by macro newsflow. However, our software business is continuing to win market share and has now deployed systems in twelve overseas countries. Our leasing business has grown profitability with a stable base of vehicles under management."

Pendragon said that given economic and market conditions, it expects its 2019 performance to be broadly stable against 2018, underpinned by used car profitability.

At 1255 GMT, the shares were up 0.8% to 26.60p.

Berenberg said the drop in underlying pre-tax profit is no surprise given the tough dynamics which plagued the UK motor industry in 2018.

"While some of these challenges remain, Pendragon's equity story is more about how it can create value from its growing used-car, software and leasing businesses, all of which have accelerated profit growth.

"With major disposals also on the table, there is a pathway for value creation here. For now we remain holders, but recognise that our view could change should certain catalysts play out over the course of 2019."



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Note 1: Prices and trades are provided by Digital Look Corporate Solutions and are delayed by at least 15 minutes.

Note 2: RiskGrade figures are provided by RiskMetrics.

 

Pendragon Market Data

Currency UK Pounds
Share Price 10.76p
Change Today 0.100p
% Change 0.94 %
52 Week High 28.45
52 Week Low 10.26
Volume 133,716
Shares Issued 1,396.94m
Market Cap 150.31m
RiskGrade 355

Pendragon Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
90.33% above the market average90.33% above the market average90.33% above the market average90.33% above the market average90.33% above the market average
54.72% above the sector average54.72% above the sector average54.72% above the sector average54.72% above the sector average54.72% above the sector average
Price Trend
90.54% below the market average90.54% below the market average90.54% below the market average90.54% below the market average90.54% below the market average
85.45% below the sector average85.45% below the sector average85.45% below the sector average85.45% below the sector average85.45% below the sector average
Income
80.72% above the market average80.72% above the market average80.72% above the market average80.72% above the market average80.72% above the market average
64.10% above the sector average64.10% above the sector average64.10% above the sector average64.10% above the sector average64.10% above the sector average
Growth
86.63% below the market average86.63% below the market average86.63% below the market average86.63% below the market average86.63% below the market average
67.27% below the sector average67.27% below the sector average67.27% below the sector average67.27% below the sector average67.27% below the sector average

What The Brokers Say

Strong Buy 0
Buy 0
Neutral 3
Sell 0
Strong Sell 1
Total 4
neutral
Broker recommendations should not be taken as investment advice, and are provided by the authorised brokers listed on this page.

Pendragon Dividends

  Latest Previous
  Final Interim
Ex-Div 18-Apr-19 20-Sep-18
Paid 30-May-19 23-Oct-18
Amount 0.70p 0.80p

Trades for 21-Aug-2019

Time Volume / Share Price
16:35 30,747 @ 10.76p
16:29 1 @ 10.76p
16:29 19 @ 10.76p
16:29 977 @ 10.74p
16:29 13 @ 10.74p

Pendragon Key Personnel

COO Martin Shaun Casha
Chair Chris Chambers
CFO Mark Simon Willis

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