Monday, 23 October 2017

Evans Halshaw and Stratstone owner's shares in reverse after profit warning

The owner of the Evans Halshaw and Stratstone car dealership brands, Pendragon, saw its share price fall almost a fifth after issuing a profit warning.
The franchise operator said it had witnessed a fall in consumer confidence in the three months to 30 September, while the value of used car sales had been affected by a price correction to reflect that.
The company said it now expected underlying pre-tax profits of £60m for 2017 as a whole - down on previous market expectations of £75m.

That was despite third-quarter revenue growth of 3.7% on a like-for-like basis - with used car revenues rising 18.1%.

Pendragon said its new profit forecast reflected wider industry concerns that sales will remain under pressure while household budgets continue to be squeezed though it expected to return to growth next year as pricing returned to normal levels.

BBC     News.

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