18.09.2019

Pendragon to close 22 Car Stores following 188% H1 profit decline

Pendragon has announced plans to close 22 of its Car Store used car supermarkets and one vehicle preparation centre after detailing a £32.2m underlying pre-tax loss in its H1 2019 financial results.

The AM100’s former number one franchised car retail group by turnover saw its share price opened for trading at 9.08p at the opening of the London Stock Exchange on 18 September 2019 – its lowest level this decade – after it reported “significant losses” in the period to June 30, 2019.

And following its efforts to reduce the levels of excess used car stock, after a review commissioned by former chief executive Mark Herbert identified the issue amid losses in the group’s rapidly established Car Store network, Pendragon announced its plan to close 22 of its 34 UK-wide sites along with one of three vehicle preparation centres, in Stoke, during H2.

[Source: Automotive Management Online]