Pendragon PLC PENDRAGON PLC INTERIM MANAGEMENT STATEMENT (6490W)
April 19 2023 - 2:00AM
UK Regulatory
TIDMPDG
RNS Number : 6490W
Pendragon PLC
19 April 2023
PENDRAGON PLC INTERIM MANAGEMENT STATEMENT
(ISSUED 19 April 2023)
This Interim Management Statement covers the period from 1
January 2023 to 31 March 2023. Unless otherwise stated, figures
quoted in this statement are for the three months ended 31 March
2023 and the comparative period being the three months ended 31
March 2022.
-- Underlying Profit Before Tax of GBP23.0m, up 23.0%, or GBP4.3m vs. Q1 FY22 (GBP18.7m)
-- Like-for-like Operating Profit of GBP37.3m, up 32.3% or
GBP9.1m (up 32.2%, or GBP8.9m, total reported)
-- Like-for-like Gross Profit up 11.9% (up 9.5% total reported)
-- Like-for-like Operating Costs up 5.4% (up 2.6% total reported)
-- Interest Costs up 51.7%
The Group delivered a very strong performance across all
divisions, resulting in underlying profit before tax of GBP23.0m,
an increase of GBP4.3m (23.0%) compared to the prior year, with
performance underpinned by the continued delivery of the Group's
strategy. A 32.2% increase in operating profit more than offset the
GBP4.6m impact of interest cost increases, resulting in an improved
underlying profit before tax.
The Group's Motor Division performed well, with a 38.7%
increase, or GBP7.9m, in operating profit, up from GBP20.4m in Q1
FY22 to GBP28.3m in Q1 FY23.
New vehicle volumes were 20.1% higher than the prior year on a
like-for-like basis, against a retail market up just 0.4% and a
total market up 18.4%. The Group continued its focus on maximising
margins through reduced levels of vehicle discounting, which,
combined with manufacturers focussing on production of higher
margin models, resulted in new vehicle gross profit per unit
("GPU") of GBP2,686, up 9.4% or GBP230 compared to Q1 FY22. New
gross profit was up 31.2% on a like-for-like basis compared to
prior year.
Like-for-like used vehicle volumes were up 14.0% as the Group
capitalised on its omni-channel capabilities driven by the
successful re-launch of the CarStore.com website in mid-2022. The
used GPU remains well above historic levels at GBP1,457, albeit
this was 17.7% behind the strong Q1 2022 used GPU of GBP1,771 which
still benefitted from the uniquely elevated market conditions.
Revenue and profitability in aftersales both grew considerably
in the period, with a 20.5% increase in like-for-like revenue,
driving a 17.5% increase in like-for-like gross profit for the
division.
The Group's software business, Pinewood, delivered operating
profit growth of 14.3% to GBP3.2m (Q1 FY22: GBP2.8m), driven by the
combined impact of both UK and international user growth, and
increases in the average revenue per user.
The Group's leasing business, Pendragon Vehicle Management
(PVM), recorded an operating profit of GBP5.2m (Q1 FY22: GBP4.9m).
Continued high demand for used vehicles resulted in strong residual
values on end-of-lease disposals being maintained.
Operating costs increased by 5.4% on a like-for-like basis and
by 2.6% in total, which reflects the continued focus on cost-saving
initiatives which have helped to minimise the impact of the
elevated levels of underlying cost inflation. Interest costs rose
by GBP4.6m (51.7%), which was due to increases in vehicle funding
and bank funding costs driven by the cumulative impact of base
interest rate increases over the past 12 months.
Outlook
The Group is pleased with the strong start to the year that has
been delivered in Q1, which was ahead of the Board's expectations.
There are encouraging signs of improvement in production and supply
of new vehicles, although used vehicle supply is expected to remain
tight for the foreseeable future. The Group remains mindful of the
macro-economic headwinds including the potential for further
interest rate rises and continued inflationary cost pressures,
however as a result of the strong performance in Q1 it expects to
comfortably outperform the Board's previous expectations for
FY23.
Bill Berman, Chief Executive of Pendragon PLC, commented:
"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. 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. We are seeing improving signs in the production and
supply of new cars and we are focused on continuing to deliver for
our customers and OEM partners in the months ahead."
Enquiries
===========
Henry Wallers Headland 07876 562436
Jack Gault Headland 07799 089357
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