Pendragon

Pendragon

Pendragon on the Web and Social Media

Pendragon News, Fundamentals and Discussion on:

Pendragon page on Interactive Investor
Pendragon page on Financial Times
Pendragon page on ADVFN
Pendragon page on London South East
Pendragon page on Bloomberg Markets
Pendragon page on This is Money
Pendragon page on Motley Fool
Pendragon page on Proactive Investors
Ayondo
Ayondo

Pendragon Socially Speaking

Pendragon RNS, News and Media

Headline

7 Sep 2017
Pendragon PLC - Holding(s) in Companyfrom Interactive Investor
3 Aug 2017
Pendragon PLC - Director/PDMR Shareholdingfrom Interactive Investor
3 Aug 2017
Pendragon PLC - Director/PDMR Shareholdingfrom Interactive Investor
18 Jul 2017
Pendragon PLC - Holding(s) in Companyfrom Interactive Investor
18 Jul 2017
Pendragon PLC - Holding(s) in Companyfrom Interactive Investor
18 Jul 2017
Pendragon PLC - Total Voting Rightsfrom Interactive Investor
13 Jul 2017
Pendragon PLC - Pendragon to Open New Coventry Distribution Centrefrom Interactive Investor
6 Jul 2017
Pendragon PLC - Holding(s) in Companyfrom Interactive Investor
14 Jun 2017
Pendragon PLC - Director/PDMR Shareholdingfrom Interactive Investor

Pendragon Charted

Pendragon Discussion on Interactive Investor

lookers by tommytomata

  Thu, 17 Aug 2017 08:31:00 GMT
It's a bit of a mixed message re Lookers. Interview in Glasgow Herald I think all car dealers will be a bit becalmed for a good while.
By tommytomata

Car Market by Hardboy

  Wed, 16 Aug 2017 06:16:00 GMT
Good figures from Lookers this morning, and fairly upbeat view of the future. Should help.
By Hardboy

NED Buy and results comment by Hydrogen Economy

  Fri, 04 Aug 2017 13:08:00 GMT

Two purchases by Chris Chambers, NE Direcotor at just over 30p totalling around 380k. Seems like a vote of confidence and no doubt helped today's nice rise.

Some positive comments in link below on results from Zeus Capital (whoever they are).

I was tempted to sell my remaining holding at around breakeven but in light of results may hold. US doing impressively well (helped no doubt by success of J-LR their main marques). Sofftware also interesting - terrific margins!


H2

https://www.directorstalkinterviews.com/pendragon-plc-h1-results-ahead-increasing-forecasts/412733061

Pendragon PLC H1 results ahead, increasing forecasts
Posted by: giles.arbor 2nd August 2017

Pendragon Plc (LON:PDG) has delivered a good set of H1 results, which are +2% ahead of our forecast at the adjusted PBT level and +9% at the adjusted EPS level. The used car strategy has worked during the period, with a significant increase in volumes driving a £10m delta in gross profit YOY, with aftersales offsetting the declines seen in the new car division on the same measure. We are increasing our forecasts on the back of this momentum in its used car business, and believe the shares look oversold with an EV/EBITDA below 4x through to 2019E based on forecast assumptions that are likely to remain at the lower end of consensus.

H1 results: Revenues were +6.3% YOY at £2472.0m (+7.3% LFL) or 3.9% ahead of our forecast. Gross profits were +4.5% YOY with margins down 20bps YOY albeit 3.8% ahead of our forecast. Operating costs were +5.0% YOY with the business having higher levels of activity as well as increased capacity in the used and aftersales segments of the market. This led to EBIT +2.2% YOY and -1.6% below our forecast (margins were -10bps YOY). Interest costs were lower than expected at £11.5m, which were -20.7% YOY and compared to our forecast of £13.5m Adjusted PBT on this basis was £48.5m and was 2.1% ahead of our £47.2m forecast. Adjusted EPS was +13.0% ahead YOY and 8.6% ahead of our forecast owing to a slightly lower tax charge. The interim dividend was flat YOY at 0,75p, albeit a progressive policy is expected at the full year. Net debt at the H1 stage was £140.1m vs. £46.6m, with the increase largely driven by working capital (c£60m YOY swing) as well as additional capital expenditure to fund the expansion of its used car business. Net debt/EBITDA remains below 1x.

Key themes: The key performance was in used cars, which saw a +20.9% LFL increase in volumes albeit at lower margin, but did deliver a £10.5m increase in gross profit (across the UK & US). Aftersales also continued to deliver robust growth, delivering a £5.3m YOY increase in gross profits. As predicted, the new car market has got more difficult and is currently -5% YTD, with Pendragon tracking this while also seeing its gross profits fall by £5.4m as a result. Elsewhere the US division continues to deliver good growth experiencing a 21.3% YOY increase in gross profits leading to a 6.4% increase in operating profits. Further acquisitions appear to be on the agenda here providing acquisition prices are attractive. Its software business also continues to progress well as it took operating profits from £4.8m to £5.5m, with Leasing experiencing strong growth albeit this was also as a function of increased fleet stock.

Forecast assumptions: We are increasing our forecasts to take account of the attractive growth in its used division. While we expect the new car business to potentially get tougher from here, aftersales appears to be absorbing these declines at present, with the momentum in the used car business at a good pace, albeit volume driven. Exhibit 1 shows our 2017-19 EPS numbers increase by 6-8% on the back of this, with our assumptions still at the lower end of the consensus range.

Valuation: As with many stocks in the sub-sector, we believe Pendragon plc has been oversold and looks attractive from a longer term valuation perspective. The balance sheet
By Hydrogen Economy

Interims by Hardboy

  Tue, 01 Aug 2017 06:50:00 GMT
Only had a very quick glance through them, but they seem good. Nice progress on sales, profits & dividend. Used car sales are v impressive, but offset by a decline in new car sales. Debt is up, but still at manageable levels. I bought a new (10 months old) car in July from a large dealership, and was concerned when they told me activity in new and used cars had really dropped off in recent weeks. it's good to see this is not reflected in Pendragon's announcement.

At current prices the full year indications are this will be paying a very well covered yield well over 5% & has a PE under 6. That is ridiculously cheap.
By Hardboy

CEO Selling by Hardboy

  Wed, 14 Jun 2017 16:04:00 GMT
3.5m shares. I don't like that, but he still has 19m so he probably just needs a bit of cash.
By Hardboy

Lookers by Hardboy

  Wed, 08 Mar 2017 11:00:00 GMT
Produced some good results this morning and seemed confident about the outlook for the market.
By Hardboy

Re: Results by Hardboy

  Wed, 15 Feb 2017 15:51:00 GMT
Interesting - on the day of the results, the share4 price falls so we assume the market does not like them, but today we are above the pre-results share price, so it would appear after some consideration they do like them after all.
By Hardboy

Re: Results by Hardboy

  Tue, 14 Feb 2017 13:33:00 GMT
Good question. I think it's a given that US interest rates will be rising over coming months, so we tend to think we'll follow; but my point really was (as I understand it) the way Pension Deficits are calculated are - look at the people who will be drawing pensions use an average life expectancy to calculate how much is needed, then look at what's in the pot and assume it will appreciate by some percentage based on Govt Bond rates. So the lower the bond yields, the higher the pension deficit.

Of course good pension fund managers will be investing the money where it can get better returns than that, so the pension liability is not necessarily as bad as it looks.
By Hardboy

Re: Results by Joe Bear

  Tue, 14 Feb 2017 10:34:00 GMT
How sure is it that interest rates will rise? Didn't the Swiss and Japanese rates go negative? What is causing the continuing appetite for bonds?
By Joe Bear

Re: Results by Hardboy

  Tue, 14 Feb 2017 09:37:00 GMT
I noticed the pension liability; and increase in contributions. The increase does take money away from the business which is a bad thing; but the increase in pension liability (if I understand it correctly) is basically a theoretical increase because bond yields are so low in this country. When interest rates increase it should automatically improve the situation.
By Hardboy

Re: Results by Regency Green

  Tue, 14 Feb 2017 08:38:00 GMT
Agree slow and steady progress but the new car market is a clear headwind and the pension scheme contribution goes up by £4.1m this year. Will probably continue to hold for the yield but not enough here to make me want to buy more.
By Regency Green

Re:Results by decpos2

  Tue, 14 Feb 2017 08:34:00 GMT
I think the problem lies in the increased amount they are going to have to pay in extra pension provision, due to the pension obligation rising sharply
By decpos2

Results by Hardboy

  Tue, 14 Feb 2017 08:20:00 GMT
It seems the market is not impressed, but I thought they looked solid. Slow & steady progress. Profits are up after a difficult year - not much; but certainly going in the right direction. The dividend is up and offers a yield of 4.25% and is more than 2 times covered. That to me suggests this is undervalued. Share buyback continues. There is fairly strong optimism, specially about the used car market.

So I'm happy to stay invested, and won't of think of selling (assuming all things remain the same) till we reach 40 at least.
By Hardboy

Full Year Results by Hydrogen Economy

  Fri, 10 Feb 2017 09:44:00 GMT
The link below indicates due next week on 14th Feb, I couldn't find any calendar on PDG IR site to confirm that but it was 16th Feb last year so seems about right.

The piece is generally positive for PDG - valuation comment below, but says "While we believe the shares are undervalued on a long term basis we believe there are better opportunities elsewhere in the sector with Vertu Motors Plc (LON:VTU) and Cambria "

H2

LINK

Valuation: At the current share price Pendragon Plc trades on 9.6x FY16E P/E rising to 10.6x in 2017 earnings (we are forecasting a 9% drop in EPS YOY). This represents a 24% premium to the other listed motor retailers in 2016 rising to 44% but a 25% discount to the wider retail sector with the EV/EBITDA broadly in line with the UK dealer average on sub 5x. There is solid asset backing in the business with H1 2016 property assets amounting to £375m covering >70% of the current market capitalization.
By Hydrogen Economy

Re: Director buying by sagittaria

  Fri, 23 Dec 2016 07:49:00 GMT
Sorry meant to type, since beginning of OCTOBER
By sagittaria