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Car dealer Pendragon enjoys record profit, but flags higher costs

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By Reuters
Car dealer Pendragon enjoys record profit, but flags higher costs
Car dealer Pendragon enjoys record profit, but flags higher costs   -   Copyright  Thomson Reuters 2022

– Pendragon reported record annual earnings on Wednesday, led by strong demand for used cars, although the British car distributor warned the Russia-Ukraine conflict could disrupt new-vehicle supply chains and lead to higher costs.

The company, like other British dealers Inchcape and Lookers, has been grappling with a global shortage of semiconductors, which has disrupted vehicle deliveries.

“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,” Chief Executive Officer Bill Berman said in a statement.

Pendragon also expects new cars to remain in short supply during 2022, and said it was facing higher costs in labour and utilities.

The company’s underlying profit for January and February came in ahead of year-ago levels. Underlying pretax profit for 2021 surged to 83 million pounds ($110 million) from 8.2 million pounds a year earlier.

($1 = 0.7539 pounds)