Car dealership Pendragon Group (LSE:PDG) said gross profit for the three months to September 30 held at last year’s “exceptional level” although used vehicle volumes fell decreases.
Pendragron said it remains confident of making progress towards its long-term objectives and, despite a difficult economic environment, expects full-year underlying pre-tax profit in line with its expectations. . In the third quarter, underlying pre-tax profit was £14.7m, down £10.4m from a year ago.
“While supply chain challenges and other market pressures are expected to persist, we are confident that we have the right strategy in place to respond to our customers and partners, and to meet our expectations for the year. whole,” said general manager Bill Berman.
The reduction in supply continued to impact new vehicle volumes in the third quarter, with the market down 0.1% compared to 2021, which was already at historic lows. London-listed Pendragon, however, said it outperformed the market with new units up 14.2% over the period, while gross profit per unit (GPU) rose to £2,597 from £743 at the same period last year.
Used vehicle volumes fell due to the ‘ripple’ impact of reduced car production, with GPU dropping from £2,052 to £1,561.
After-sales revenue increased by 5% and gross margin increased from 50.3% to 51.7%, resulting in a 7.8% increase in gross margin.
“Strong new car and aftermarket performance more than offset lower used car volume and anticipated lower used car margins,” Pendragon said.
Outside of its UK automotive business, the company said “its leasing and software businesses performed well.”