Profits shift into reverse at motor dealership

Pendragon, the car dealership giant behind the Evans Halshaw and Stratstone chains, has seen its profits dented by a fall in new car sales and a shortage of used vehicles.

Its latest results revealed that underlying pre-tax profits slumped to £15 million in the three months to 31 March from £32.4m a year earlier.

New vehicle revenues reversed 13.3 per cent, with gross profits for the division down 17.6 per cent in the quarter as the group came up against a record performance from a year earlier.

Used cars sales, which have proved more resilient, also suffered in the threemonth period, with gross profits falling 16.5 per cent on sales 1.5 per cent lower.