F&I Management & Training

At its prestige division, Stratstone, turnover was down 37.4 per cent year on year while turnover at its 130-outlet volume division Evans Halshaw fell 35.5 per cent.

Used car market

In the used car market, demand continued to exceed supply with wholesale prices rising during 2009. The company plans to invest more in used stock in the second half of the year.

Pendragon closed 14 franchised outlets in the first half of 2009 and it currently has almost £40m of property on the market. The company also reduced its borrowings by £39.6m to £317.7m and cut its new car stock by £235.9m.

Pendragon chief executive Trevor Finn (pictured) said: "The first half of 2009 has seen a very challenging car market.

Significant turnaround

"Despite this, a significant turnaround from the loss incurred in the second half of 2008 has been achieved as a result of the decisive actions taken by management to reduce costs and close non viable dealerships.

"In addition to negotiating a new three year borrowing facility we have reduced debt levels in the first half of the year, which underlines the financial stability of the group in what remain challenging trading conditions."

Looking to the rest of 2009, Finn said the scrappage scheme would help the new car market and used car prices would remain strong.

DATED: 19.08.09

FEED: MT