Pre Closing Statement

RNS Number : 8056X

Pendragon PLC

30 June 2008

 



                                    30 June 2008

Pendragon PLC                                             FOR IMMEDIATE RELEASE

Pre-Closing Statement

The car market is experiencing a decline in activity levels for both new and used cars. Nationally, new retail registrations were down 2.2% in retail and 0.1% in small business users registrations for the four months to the end of April 2008. In May, national registrations declined significantly, by 9.5% in new retail and 15.4% for small business user registrations.

It is unclear at this time as to whether the level of activity decline seen in May, which appears to have continued so far in June, will persist for the remainder of the year. Our current view is that it will and that there will be a continuing exposure to any further slowdown in the general economy.

The Company has taken action to reduce its fixed cost base and has recently completed a redundancy programme resulting in just under 500 job losses. Together with other actions taken, this is designed to help limit the impact of these difficult and competitive trading conditions. Our sales volumes have remained robust relative to the market and aftersales has continued to perform well.

Clearly in such volatile market conditions the profit outlook for the Group this year is difficult to forecast. However, the Group continues to be profitable and cash generative.

The Group will announce its Interim results for 2008 on 9 September 2008.

Enquiries:

Pendragon PLC Trevor Finn, Chief Executive                01623 725114

  David Forsyth, Finance Director

Finsbury          Rollo Head/ Gordon Simpson                0207 2513801    

 

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