UK car dealer Pendragon said it saw a significant improvement in performance during the second half of 2019 despite many challenges, including the closure of 22 underperforming Car Store locations.

Pendragon said in a statement: “The Group’s underlying profit before tax for FY19 is expected to be around the bottom end of current expectations. However the board remains confident that the improvement in performance during the second-half puts the business on a much stronger footing as we enter 2020.”

Go deeper with GlobalData

Data Insights

The gold standard of business intelligence.

Find out more

The firm said the improvement was despite challenging market conditions and weakened consumer demand in the run up to the general election.

Pendragon said: “The period benefited from the actions taken by management to re-set performance, as outlined at the groups interim results, which included the closure of 22 underperforming Car Store locations, better management of vehicle inventory and a clear focus on operational cost management.”

In September, the company announced that 300 jobs would be cut along with 22 stories after posting a pre-tax loss of £32.2m, which was down 188% from £32m profit in 2018.

The faltering performance was due to a combination of issues, including the level of unsold used car stock, Pendragon said at the time.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

The company then released stock through a combination of lower retail pricing and clearance through trade auction channels. In July 2019 the chief executive of Pendragon Mark Herbert departed after only three months in the role.

However in October after completing the closure of Car Stores, Pendragon revealed an underlying profit before tax of £3m – a 57.9% increase against the same period last year.

The statement at the time said: “Whilst the improved performance during the period is encouraging, we continue to expect economic and market conditions to be challenging, with the ongoing uncertainty around Brexit impacting consumer confidence.  The full-year underlying loss before tax remains in line with the board’s expectations.”