Pendragon has reported a slump in profits in its full-year results to 31 December 2017 due to a reduction in new car sales.
The largest and leading automotive online retailer in the UK said underlying pre-tax profit fell nearly 20% to £60.4m in 2017 because of a “challenging economic environment and lower consumer confidence”, particularly in the third quarter.
New vehicle revenue fell 4.9% and UK retail national registrations in its brands also fell by 8.0% in the year.
The results come as the Society of Motor Manufacturers and Traders (SMMT) show Britain’s new car market month-on-month is going in reverse.
Figures in brief
- Underlying pre-tax profit fell nearly 20% to £60.4m
- New vehicle revenue fell 4.9%
- Total revenue up 4.5% to £4.7 billion
- Used car sales up 15.3% on a like-for-like basis
Trevor Finn, Chief Executive, said: "The Group has a clear focus and direction to transform the business and double used revenue by 2021. This will be enabled by our market-leading software business to provide the online and technology platform and by investment in increasing the used retail and aftersales representation points in the UK.
"We made further progress towards our goal of doubling used vehicle revenue with growth in the period of 15%. We anticipate our performance in 2018 to be in line with expectations."