Stockmarket

Pendragon lifts profit forecast again on strong used car sales



© Reuters.

(Reuters) -British car dealer Pendragon lifted its annual profit outlook for the second time in as many months, reflecting strong demand for used cars amid a shortage of new vehicles due to the global chip crisis, sending its shares higher.

The shortage of new cars in October and November was also not as pronounced as expected, the Nottingham-based firm said, prompting it to raise annual underlying pretax profit projections to about 80 million pounds ($107 million).

In October, it had raised its annual profit projection to 70 million pounds from a previous range of 55 million to 60 million pounds.

Shares in the company jumped 6% to 19.70 pence by 0900 GMT and were among the biggest gainers on the small cap index.

“It looks increasingly likely that these drivers will be continuing into the New Year,” Peel Hunt analysts said in a note.

Rival British car dealers Inchape and Lookers have also raised their annual outlook as they enjoyed a strong rebound in demand after the lifting of lockdowns.

Strong gross profit per unit boosted results, Pendragon said, after the company was forced to shut some loss-making stores and cut 1,800 jobs in 2020 due to the coronavirus pandemic and challenges related to Brexit.

Pendragon said it wary of further disruption from the pandemic to its local markets and global supply chains.

($1 = 0.7509 pounds)

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.



READ SOURCE

Leave a Reply

This website uses cookies. By continuing to use this site, you accept our use of cookies.