Pendragon shares surge on strong sales

Pendragon shares (LON: PDG) surged after the group revealed a positive start to the second half of the financial year, recording a £7m profit for July and August.

The car dealer posted a £31m pre-tax loss for the first half of the year, however, the firm has said it is “well-positioned” in the long term.

Revenue across the first-half of the financial year has fallen by 50.4% to £1.22bn from £2.45bn.

Bill Berman, chief executive, said: “The Covid-19 pandemic has had a significant impact on our business during the period, however, thanks to the agility, hard work and commitment of our people, we have performed resiliently.

“We’ve been encouraged by the first few months of trading following reopening and, while the outlook for the remainder of the year remains uncertain, we are confident the operational improvements we have made leave us well-positioned for the long-term.

“We recently set out our new strategy with digital innovation and operational excellence at its core. Both will be instrumental in transforming Pendragon’s performance and we have made great progress in both areas already this year.

“While there is some distance still to travel, we remain firmly committed to achieving our twin goals of sustainable profit growth and attractive returns for shareholders,” he added in a statement.

Pendragon shares (LON: PDG) surged on Tuesday morning and are trading +6.49% at 7,96 (0950GMT).