Thu. Jan 20th, 2022

UK-based car dealer Pendragon has increased its full-year earnings guidance after the shortage of new vehicles did not turn out to be as severe as he expected.

The Nottingham-based company said customer demand and orders remained higher than last year as it upgraded its pre-tax profit margin for the year ended December 31 from £ 70 million to £ 80 million. Pendragon’s sales of used vehicles also remained strong.

Supply chain disruptions and a shortage of semiconductors have hit vehicle production around the world this year, limiting the amount of stock available and driving up prices.

“Despite demand exceeding deliveries, the deficit in October and November was lower than we previously expected and performance was supported by a strong gross profit per unit,” Pendragon said.

The car dealer has cut thousands of UK jobs and closed 54 loss-making sites, restructuring to cope with the decline in car sales caused by the pandemic. It announced its first half-year profit in three years this year, and its share price has risen more than 39 percent so far this year.

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