Pendragon revenues rev up, expects little effect from Brexit price hikes

Automotive retailer Pendragon’s third quarter revenue increased as it said that it had not suffered from any uncertainty in the wake of the Brexit vote and from fluctuating foreign exchange rates.

In an update for the three months to 30 September, revenue grew by 5.7% on a like-for-like basis with used revenue growth increasing 8.3%.

After sales gross profit grew 3.2% like-for-like and used gross profit rose by 0.5%, while new gross profit increased 4.2%.

Overall in the quarter underlying like-for-like profit before tax rose by 6.3%.

Chief executive Trevor Finn: "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.”

Based on discussions with the company’s franchise partners, it does not anticipate any material effect on new vehicle pricing as a result of foreign exchange rates, since it believes that car manufacturers will try to mitigate this cost to consumers through monthly payments.

Performance levels in the quarter have remained within the company’s expectations it expects full year results to be in line with expectations.

Online visits to the company’s websites, Stratstone.com and Evanshalshaw.com, increased by 16% in the nine months ended 30 September.

The company, which operates in the used, aftersales and new vehicle sectors, also has a profitable operation in California and a number of support businesses in dealer IT systems, vehicle leasing and parts.

Shares in Pendragon were up 1.26% to 28.10p at 1116 BST.