Pendragon seeks out “self-help opportunities”
Pendragon seeks out “self-help opportunities” to refocus its used Car Store car supermarket strategy. In H1 2019, it expected to be “significantly loss making”, according to results of an initial business review (conducted by Chief Executive Mark Herbert and his leadership team at the once AM100-topping group).
Pendragon’s share prices fell by 20% to 18.4p.
According to a statement issued through the London Stock Exchange, £11.9m losses incurred by the Car Store division in 2018 would increase to over £25m in 2019 due to “execution inefficiency and the impact of excess used car stock”
- At the end of 2018, Pendragon held £458m worth of used car stock.
- At the end of 2018, Pendragon held £372m worth of used car stock.
In the second quarter of 2019 they will aim to reduce the level of aged, pre-reg and ex-demonstrator stock to 38% of used stock units held on April 1.
Mark Herbert, Chief Executive, said: “Notwithstanding the challenging market and uncertain macro outlook, the expected loss for the year is still disappointing. That said, we see significant addressable opportunities to improve the business and return to profitable growth. We are continuing to work on our review of the business ahead of our strategic update in September, but I am confident there are real opportunities for self-help that will improve the performance of the core UK Motor and Leasing businesses. In the short-term, there is a need for a refocus of strategy and execution in Car Store but I believe this, together with Pinewood, to be significant long-term market opportunities that we should be pursuing with vigour.”