Car retailer Pendragon has delivered “a very strong performance across all divisions” in its first quarter, resulting in underlying profit before tax of £23m, an increase of £4.3m or 23% compared to the prior year.
A 32.2% increase in operating profit, meanwhile, more than offset the £4.6m impact of interest cost increases, resulting in the improved underlying profit before tax.
Looking ahead, while the Nottingham-based company says it remains mindful of macro-economic headwinds, including the potential for further interest rate rises and continued inflationary cost pressures, as a result of the performance in Q1 it expects to “comfortably outperform the Board’s previous expectations for FY23.”
Bill Berman, Chief Executive of Pendragon PLC, said: “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.”
