Pendragon Contracts records fall in operating profit for 2011
The firm generated £6.5m of operating profit in 2011, down from £7.5m the year before. For 2011, Pendragon Contracts saw revenue of £38.1m (2010: £44.9m), with gross profit of £9.8m (£9.9m).
Parent company Pendragon PLC’s chief executive, Sir Trevor Finn, said: ‘Operating profit of £6.5m compared to £7.5m in the prior period is due to lower volume of profit on end of lease disposals as the fleet size has reduced.
‘The fleet size stood at 9,800 at December 31, 2011, compared to 10,100 at the same point in 2010. This trend is expected to continue in 2012 but then stabilise in future years.’
Sir Trevor was speaking as he revealed Pendragon Plc’s full year results for 2011, which saw Europe’s largest motor group achieve profit before tax of £30.8m, an increase of 22% over 2010 and more than three times the underlying profit of 2009.
He added: ‘Pendragon made good progress in 2011 despite turbulent economic conditions.
‘The year ahead is set to be challenging, but given our recapitalised balance sheet, healthy cash generation, clear strategic goals and robust operational management we expect to maintain our momentum into 2012.’