Car dealership Pendragon Group (LSE:PDG) said gross profit for the three months to 30 September was maintained at the “exceptional level” seen last year although used vehicle volumes were down.
Pendragron said it remains confident in delivering progress towards its long-term goals and, despite a challenging economic backdrop, expects full-year underlying profit before tax in line with its expectations. In the third quarter, underlying pre-tax profit was £14.7mln, down £10.4mln on last year.
"While supply chain challenges and other market pressures are set to persist, we are confident we have the right strategy in place to deliver for our customers and partners, and to meet our expectations for the full year,” said chief executive Bill Berman.
Reduced supply continued to impact new vehicle volumes in the third quarter, with the market down 0.1% against 2021, which was already at historic lows. London-listed Pendragon, however, said it outperformed the market with new units up 14.2% during the period, while gross profit per unit (GPU) grew to £2,597 from £743 the same period last year.
Used vehicle volumes fell due to the “knock-on” impact of reduced car production, with GPU down to £1,561 from £2,052.
Aftersales revenue grew by 5% and the gross margin rose to 51.7% from 50.3%, resulting in a 7.8% increase in gross profit.
"The strong performance in new cars and aftersales broadly offset the lower used car volume and anticipated decline in used car margins," Pendragon said.
Outside of its UK motor business, the company said its “leasing and software business delivered good performances”.