Pendragon issued a trading update today raising its pre-tax profits forecast from £70m to £80m.
It said it continued to perform strongly in October and November and while it was impacted by the shortfall in new car supply customer demand and order levels have continued at a higher level than last year.
“Despite demand outpacing deliveries, the shortfall in October and November was lower than we had previously anticipated, and performance has been supported by a strong gross profit per unit.
“In addition, we are continuing to see robust performance in used vehicles following successful implementation of the Group’s strategy, which continues to drive improved gross profit per unit, underpinned by favourable market conditions.
“The overall group performance continues to be supported by cost and efficiency savings realised through the successful delivery of the strategy.”
Looking ahead Pendragon said it remained “cautious” about potential further disruption from Covid-19 to both our local markets and global supply chains.
“However, our strong financial performance, with only one month of the financial year remaining, means we now expect group underlying profit before tax for FY21 to be approximately £80m.
“The board is confident that the group’s strategy positions it well to respond to the ongoing market uncertainty and to capitalise on any resultant opportunities.