Car dealer Pendragon warns on profits as consumer demand 'wanes'
Car dealer Pendragon has sounded the alarm about health of Britain’s automotive industry, issuing a profit warning it blamed on falling demand for new cars and lower prices in the used market.
The warning - which came in an unscheduled update that also revealed Pendragon chairman Mel Eggerton was stepping down with immediate effect - sent shares in the company down almost a fifth.
Concerns about motorists’ willingness to splash out on new vehicles also dragged down peers, with Inchcape and Lookers dropping almost 5pc.
The warning comes as industry sources say that new car registration figures are “bloody”, with another big drop expected when the monthly data are issued at the start of November. Uncertainty caused by Brexit and the weaker pound are being cited as the main causes of the slowdown.
Pendragon - which owns the Evans Halshaw and Stratstone dealerships - said it now expects to post a pre-tax profit of £60m in 2017 against market expectations of £75m, and some £15m below last year’s figure.
Profits are forecast to start to rise again in 2018, the company said. It added that during September "as consumer confidence waned, we experienced significant market pressure".
Car dealer Pendragon warns on profits as consumer demand 'wanes'
Tory-Brexit-No-Deal DOOMED™!
Car dealer Pendragon has sounded the alarm about health of Britain’s automotive industry, issuing a profit warning it blamed on falling demand for new cars and lower prices in the used market.
The warning - which came in an unscheduled update that also revealed Pendragon chairman Mel Eggerton was stepping down with immediate effect - sent shares in the company down almost a fifth.
Concerns about motorists’ willingness to splash out on new vehicles also dragged down peers, with Inchcape and Lookers dropping almost 5pc.
The warning comes as industry sources say that new car registration figures are “bloody”, with another big drop expected when the monthly data are issued at the start of November. Uncertainty caused by Brexit and the weaker pound are being cited as the main causes of the slowdown.
Pendragon - which owns the Evans Halshaw and Stratstone dealerships - said it now expects to post a pre-tax profit of £60m in 2017 against market expectations of £75m, and some £15m below last year’s figure.
Profits are forecast to start to rise again in 2018, the company said. It added that during September "as consumer confidence waned, we experienced significant market pressure".
Car dealer Pendragon warns on profits as consumer demand 'wanes'
Tory-Brexit-No-Deal DOOMED™!
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