Pendragon PLC INTERIM MANAGEMENT STATEMENT (3361N)
October 25 2016 - 2:00AM
UK Regulatory
TIDMPDG
RNS Number : 3361N
Pendragon PLC
25 October 2016
PENDRAGON PLC INTERIM MANAGEMENT STATEMENT (ISSUED 25 October
2016)
This Interim Management Statement for Pendragon PLC, the largest
and leading automotive online retailer in the UK, covers the period
from 1 July 2016 to 24 October 2016. Unless otherwise stated,
figures quoted in this statement are for the three months ended 30
September 2016.
Trevor Finn, Chief Executive:
"Despite significant commentary on the potential negative impact
of the EU Referendum, we have not experienced any noticeable change
in our customers' behaviour and we have continued to grow our
business. Like for like Group sales grew 5.7% in Q3 versus a strong
comparator and Group underlying profit increased by 6.3%. We are
particularly pleased with our used revenue growth which accelerated
to 8.3% on a like for like basis. The performance of the Group is
in line with expectations for the full year."
Highlights
-- Revenue grew by 5.7% on a like for like basis with used revenue growth accelerating to 8.3%
-- Aftersales gross profit grew by 3.2% on a like for like basis
-- Used gross profit grew by 0.5% on a like for like basis
-- New gross profit increased 4.2% on a like for like basis
-- Overall in the quarter, underlying like for like profit before tax increased by 6.3%.
-- Online visits to Stratstone.com and Evanshalshaw.com
increased by 16.0% in the nine months to 30 September 2016.
-- Our financial position is strong, with our debt ratio
remaining significantly below our target range.
-- To date we have completed GBP6.1m of the GBP20m share buyback
programme that we announced in May of this year.
Trading Update
We operate our core business in the used, aftersales and new
vehicle sectors under the Evanshalshaw.com and Stratstone.com
brands. We also have a well established and profitable operation in
California and a number of support businesses in the associated
markets of dealer IT systems, vehicle leasing and parts.
Aftersales is our largest profit contributor and gross profit
grew by 3.2% in the period on a like for like basis. The Group is
benefiting from the increased new vehicle supply which continues to
increase the less than three year old car parc and the four to six
year old car parc. Additionally, we also benefit from our growing
market share in used vehicles which provides an increasing
opportunity for aftersales work.
Used market share growth continues to be a key strategic
priority for the Group. Used like for like revenue grew by 8.3% and
gross profit grew by 0.5% in the period on a like for like basis.
We have expanded our 'click and collect' proposition from Evans
Halshaw (www.evanshalshaw.com/move-me-closer) into Stratstone
(www.stratstone.com/move-me-closer). We have also expanded our Sell
Your Car offering to a further 12 sites this year with continued
rollout planned in Q4. We are maintaining our marketing investment
in this area, continuing to build market share.
New gross profit grew by 4.2% in the period on a like for like
basis. During Q3 total UK market registrations rose by 1.4% whereas
retail registrations fell by 2.5%. On a year to date basis total UK
market registrations rose by 2.6% and retail registrations rose by
0.4%.
Our financial position remains strong, with our debt :
underlying EBITDA ratio remaining significantly below our target
range of 1.0 to 1.5. We continue to rollout additional footprint to
complete a national UK presence for the sale and servicing of
vehicles. To date we have purchased GBP6.1m of our shares through
the GBP20m buyback programme announced in May.
Outlook
When we announced our interim results in early August, a month
after the EU Referendum decision, we said that we had not
experienced any noticeable change in our customers' behaviour. This
continues to be the case and our revenue in the quarter has
increased.
We also said that, based on discussions with our franchise
partners, we do not anticipate any material effect on new vehicle
pricing as a result of exchange rates, since we believe the car
manufacturers will try to mitigate this cost to consumers via
monthly payments.
Performance levels in the quarter have remained within our
expectations and our business has continued to grow. We expect 2016
full year performance to be in line with expectations.
Enquiries
================ =================== ============ ==============
Pendragon
Trevor Finn Chief Executive PLC 01623 725114
Pendragon
Tim Holden Finance Director PLC 01623 725114
Gordon Simpson Partner Finsbury 0207 2513801
Philip Walters Principal Finsbury 0207 2513801
================ =================== ============ ==============
This information is provided by RNS
The company news service from the London Stock Exchange
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