Pendragon cranked up profits by more than expected in the first three months of this year as double-digit increases in the number of vehicles sold outweighed easing costs for used cars.
The Nottingham-based group, which has sites across Scotland and trades under Evans Halshaw and Stratstone brands, made an underlying profit before tax of £23 million. That was £4.3m more than in the same period last year.
As a result, Pendragon said it expects to "comfortably outperform" previous financial expectations even as it absorbs spiralling interest costs which rose by nearly 52 per cent in the first quarter.
On a like-for-like basis, new vehicle volumes were up 20.1% on the same period a year earlier. Used vehicle volumes were 14% higher, thanks in a large part to the group’s CarStore brand of car supermarkets and its relaunched website.
READ MORE: Leading dealer Pendragon says new car shortages to persist into next year
Gross profit per unit (GPU) on new vehicles was up by 9.4%, or £230, to £2,686 compared to the first quarter of last year. The used GPU figure of £1,457 was down by 17.7% or £314 on last year, which benefitted from "uniquely elevated market conditions".
"I am delighted to report a very strong performance in the first quarter, which builds on the momentum we generated last year from the progress with our strategic and operational initiatives," chief executive Bill Berman said.
"We continued to trade strongly in UK motor, across both new and used markets, and our performance shows the benefits of the strategy we have been pursuing in recent years. It is really encouraging to see all of the group’s divisions in growth, particularly when considering the ongoing challenges in the external operating environment."
He added that the group is seeing "improving signs" in the production and supply of new cars following shortages last year that drove up prices and waiting times.
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