A Pendragon showroom
(Picture: Pendragon)Luxury car dealer Pendragon has reported record full-year annual earnings and profits driven by a resurgence in the used car market, but pointed to potential bumps in the road due to Russia’s invasion of Ukraine.
The company recorded record profits last year of £83 million, up 912% from £8.2 million a year earlier.
The increase was attributed to a new strategic direction for the company that included cost-cutting measures.
Revenues also climbed 18.0% to £3.44 billion from £2.92 billion the previous year.
It said it had “benefited from the shortage in new cars”, with demand driving up the price of used cars. Used car revenue at the group was up 43% last year.
Pendragon chief executive Bill Berman said the company had delivered a strong set of results, with “positive contributions” from all parts of the business.
But he warned: “We expect existing supply chain constraints to continue in the current year, and we are mindful of the potential for further disruption to new vehicle supply chains as a result of the conflict in Ukraine.
“Despite this, we have the right strategy in place and we expect to make positive progress towards our long-term goals this year.
Pendragon was the subject of a failed £400 million takeover bid from European rival car dealer and 25% Pendragon shareholder Hedin Group earlier this month.
Reports suggest Hedin, which operates more than 200 vehicle showrooms in Belgium, Norway, Sweden and Switzerland may make another bid for the car dealer this year
Pendragon announced this week that it was redeveloping its flagship Stratstone Jaguar Land Rover franchise in Mayfair.
