Pendragon chief government Invoice Berman has mentioned he’s “delighted” with the automotive retail group’s 2021 monetary outcomes, which revealed a document underlying revenue earlier than tax of £83 million.
The revenue determine is greater than ten instances the £8.2m achieved in a COVID-impacted 2020 and was accompanied by revenues up 27.1% to £3.45 billion and a £50.7m discount in adjusted web debt (to £49.7m), together with the £28.9m deferred VAT compensation.
Berman mentioned that the AM100 PLC remained aware of the impression of the battle in Ukraine on car provides, he was assured that the enterprise now had “the precise technique in place” and expressed optimism in regards to the potential progress of its relaunched CarStore used automotive retail division.
Final 12 months’s document efficiency symbolize the group’s first full-year monetary interval since its 2020 transfer to axe 1,800 jobs and 15 dealerships as a part of a bid to create a “leaner and extra sustainable working mannequin” within the wake of the COVID-19 disaster.
“Now we have delivered a extremely robust set of outcomes, with optimistic contributions from all elements of our enterprise,” he mentioned.
“Late in 2020, we set out our new technique to rework our operations and adapt to the fast-changing retail surroundings.
“Our focus since then has been on creating worth by means of the supply of this technique and we’re seeing the operational and monetary advantages of this difficult work in our outcomes immediately.
“Our sector has skilled a novel set of buying and selling circumstances throughout the interval and I’m delighted with how we have now carried out on this surroundings. Now we have made the a lot of the beneficial market dynamics to ship document underlying income and we have now additionally reported a return to revenue for CarStore, our relaunched, used automotive model.”
In an interview with AM earlier this 12 months – earlier than the outbreak of battle in Ukraine – Berman mentioned that new and used automotive provides may take as much as eight years to get well after element shortages and COVID-19 manufacturing facility closures.
Commenting on the availability constraints in immediately’s outcomes assertion, he added: “We count on current provide chain constraints to proceed within the present 12 months, and we’re aware of the potential for additional disruption to new car provide chains on account of the battle in Ukraine.
“Regardless of this, we have now the precise technique in place, and we count on to make optimistic progress in the direction of our long-term targets this 12 months.”
Pendragon’s 2021 monetary outcomes assertion got here as market analysts anticipated one other takeover bid for the PLC from its largest shareholder, Swedish automotive retail’s Hedin Group.
The enterprise, owned by Anders Hedin, made a £400m bid for Pendragon that was lately rejected.