UK-based car dealer Pendragon has increased its full-year profit guidance after the shortage of new vehicles turned out not to be as severe as it expected.
The Nottingham-based company said customer demand and orders have remained higher than last year as it upgraded its guidance for underlying profit before tax for the year to December 31 from £70m to £80m. Pendragon’s used vehicle sales have also remained robust.
Supply chain disruptions and a shortage of semiconductors have hit vehicle production around the world this year, limiting the amount of stock available and driving up prices.
“Despite demand outpacing deliveries, the shortfall in October and November was lower than we had previously anticipated and performance has been supported by a strong gross profit per unit,” Pendragon said.
The car dealership has cut thousands of UK jobs and closed 54 lossmaking sites, restructuring to cope with the fall in car sales caused by the pandemic. It announced its first half-year profit in three years this year, and its share price has gained more than 39 per cent so far this year.