Nottingham car dealer, Pendragon saw it’s pre tax profits doubled to £24million thanks to big leaps in used cars sales and the increasing number of after sales work the firm is providing.
Although profit had increased, sales revenue had dropped by over £100 million to £3.418 billion, when compared to the year before. The firm, who own the garage chains Evans Helshaw, Statstone and Quicks, attributed the changes to an increase in the amount of consumers buying used cars and focusing on value for money. This was helped by an expansion of Quicks secondhand supermarket trials, which sell cars under a price match guarantee and prides itself on a high level of customer service.
Trevor Finn, Chief Executive said that strong progress had been made by the group and that used car sales have been a highlight for the year. The firm will continue to focus on this sector and hopes it will continue to grow in 2012. Aftersales have been impacted by the reduced markets but they are planning to roll out several new initiatives to assist performance in the next year. Mr Finn also praised the company’s social media project which has increased visits to Evans Helshaw and Statstone by 49% compared to 2009’s figures.
Finances also received a boost due to a sale of shares gained in a rights issue, and it has been reported that they had managed to raise about £70 million.
It wasn’t all good news however. Mr Finn predicts that upmarket costs to do well this year but sales of more mainstream cars will be difficult because of the currently poor economic conditions. He hopes that the business will continue to maintain it’s momentum into 2012 due to the firms clear strategic goals.