Trading Statement

Pendragon PLC
27 November 2007

27 November 2007                                                          No 579


                          Pendragon PLC ('Pendragon')

                                Trading Update


During the year we highlighted the very competitive new car market and the
deflationary effect on transaction prices of new cars.  Whilst this has been
positive on new car volumes, it has had a negative effect on used car margins as
the deflationary effect on new car prices also feeds into used car prices.  We
have been successful in maintaining activity levels in used car sales although
this has not compensated for the loss of margin.

Used car margins have shown a positive trend over recent months but this
recovery is too late to recoup lost profits from earlier this year.
Additionally, we have experienced a drop in our California business due to US
economic uncertainties and very recently serious bush fires in the southern
California area.  Consequently, we expect our operating profits for the Group to
be behind market expectations by £12 million this year.

In considering the uncertain economic outlook we are being more cautious on the
outlook for next year and have reduced our expectations by £18 million.

Notwithstanding the lower trading performance, we have retained strong control
over our balance sheet through good working capital disciplines and we expect
borrowings to be in line with market expectations at the year end.  It therefore
remains our intention to pay the final dividend of 2p and retain our progressive
dividend policy going forwards.

We plan to update the market by way of our normal pre close statement towards
the end of December and to announce our 2007 full year results on 20th February
2008.


Enquiries:-

Trevor Finn, Chief Executive - 01623 725114
David Forsyth, Finance Director - 01623 725114
Gordon Simpson Finsbury - 0207 2513801
27 November 2007


-ENDS-

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