Consensus-beating results from car dealer Pendragon (PDG) didn't stop the shares falling on the day the numbers hit the market. The group reported underlying sales growth across all segments - used car sales rose 9.5 per cent, new car sales rose 3.1 per cent and aftersales jumped 7.3 per cent - but operating profit at the premium-focused Stratstone business fell, driven by new car margin declines. This is to do with an issue linked to specific brands, although management hasn't named names.
Over at the volume-based Evans Halshaw business, new car gross profit moved up 8.2 per cent, helping drive an overall 7.2 per cent improvement in operating profit there.
Management believes the new car market will remain flat this year, in contrast to the 5 per cent contraction forecast by the Society of Motor Manufacturers and Traders (SMMT). This view was recently bolstered by news from the SMMT that British new car registrations rose 3 per cent in January, a result of increased demand from private consumers.
Analysts at Liberum expect pre-tax profit of £68.3m for the year ending December 2017, giving EPS of 3.6p, compared with £75.4m and 3.9p in 2016.
| PENDRAGON (PDG) | ||||
|---|---|---|---|---|
| ORD PRICE: | 34p | MARKET VALUE: | £488m | |
| TOUCH: | 33.8-34.3p | 12-MONTH HIGH: | 42p | LOW: 26p |
| DIVIDEND YIELD: | 4.3% | PE RATIO: | 9 | |
| NET ASSET VALUE: | 26p* | NET DEBT: | 25% | |
| Year to 31 Dec | Turnover (£bn) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2012 | 3.60 | 34.0 | 1.7 | 0.10 |
| 2013 | 3.90 | 38.9 | 2.8 | 0.35 |
| 2014 | 4.00 | 64.6 | 3.5 | 0.90 |
| 2015 | 4.45 | 79.0 | 5.0 | 1.30 |
| 2016 | 4.54 | 73.0 | 3.8 | 1.45 |
| % change | +2 | -8 | -24 | +12 |
Ex-div: 20 Apr Payment: 23 May *Includes intangible assets of £362m, or 25p a share | ||||
