Pendragon Group (LSE:PDG) has reported rising sales of both new and used vehicles at the half-year stage, prompting higher revenue and post-tax profit.
On a like-for-like basis, sales of new vehicles jumped by 18.3% in the six months to June, alongside 7.2% for used cars, as the market continued to recover following the pandemic.
In terms of volumes, registrations of vehicles sold under Pendragon franchises climbed 9% to over 517,000, the group said in a statement.
“While the overall new car market continues to be well below pre-pandemic levels, there was an improvement in supply during the first half,” the car dealership franchise firm said.
Lockdowns due to the Covid-19 pandemic had hit the market, causing global supply chains to become squeezed.
Revenue climbed 13% to £2.09 billion, with post-tax profit climbing 2% to £26.9 million as a result of the improving market.
Net cash rose to £41.5 million, meanwhile, up from £23.3 million worth of debt at the end of 2022.
Looking ahead, the group acknowledged the economic backdrop remained challenging due to high inflation and interest, but reassured progress should continue into the latter part of the year.
“I'm pleased to report a strong trading performance in the first half, with revenue and profits up across all our divisions despite a challenging backdrop,” CEO Bill Berman commented.
Pendragon added it had been approached by AutoNation, Hedin Mobility Group and PAG International regarding the sale of its retail and leasing operations, with discussions ongoing among shareholders.