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Pendragon PLC on Wednesday said it expected supply constraints to continue this year, but was pleased with its overall operational and financial performance over 2022.
Pendragon is a Nottingham, England-based automotive retailer, which owns brands such as Evans Halshaw, CarStore, Pinewood, and Quickco.
For the three months to December 31, the company reported a financial performance ‘slightly ahead’ of expectations, as trading performance offset higher operating and interest cost pressures.
The group delivered like-for-like volume growth of 4.6%, outperforming the retail new car market growth of 1.0%. Used car volumes also grew by 5.2% on a like-for-like basis.
For 2022, the company now expects underlying pretax profit of £57 million, down from £83.0 million last year, but slightly ahead of market expectations for this year.
As at December 31, Pendragon had adjusted net debt of £23 million, down from £49.7 million a year prior.
Looking ahead, Pendragon expects constraints in both new and used vehicle supply to continue into 2023.
However, it added that the new car order bank remains strong and there are some early signs that new car supply may be beginning to improve, thus driving growth in new car volumes during 2023.
‘We closed out the year with a positive performance in the final quarter, which saw volume growth in both new and used vehicle sales. Despite the numerous challenges we have faced across our markets and in the economy at large, we performed strongly in 2022 and this shows the benefits of the improvements made across the business in recent years,’ said Chief Executive Officer Bill Berman.
‘Whilst market challenges will persist in 2023, we enter this new year with confidence and good momentum, and we look forward to making further progress against our strategic objectives.’
Pendragon shares were trading 2.9% higher at 20.17 pence each in London on Wednesday morning.
By Holly Beveridge; Alliance News reporter
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