(PDG.L) Pendragon PLC Buy/Sell

RNS Number : 5988C
  Pendragon PLC
  17 November 2009
   

17 November 2009

No: 659
    

PENDRAGON PLC

Interim Management Statement

This Interim Management Statement by Pendragon PLC covers the period from 1 July 2009 to 16 November 2009. Unless otherwise stated, figures quoted in this statement are for the four months ended 31 October 2009. 

Current trading for the four months ended 31 October 2009

During the four months ended 31 October 2009, UK new car demand has continued to show growth compared with the equivalent period last year. The Government's scrappage incentive scheme has boosted sales at the lower priced volume end of the market which has benefited our Evans Halshaw brand where new car sales are ahead for the four months to October by 3%. Evans Halshaw has continued to focus on higher margin retail sales and has reduced exposure to low margin fleet deals.  

Sales in our Stratstone premium brands business have benefited very little from the scrappage scheme, nevertheless new car sales are 5.2% ahead of last year for the same period and sales of certain brands have recovered significantly from last year's lows. Overall profitability in the new car business is well ahead of the same period last year as margins are better and our cost saving measures continue to have a positive impact.

The latest available data from Experian shows that national used car sales fell 5% in the first and 6.6% in the second quarter of 2009 compared with the equivalent quarters of 2008. No data for the third quarter is yet available and we expect that nationally volumes have not yet recovered to normal levels. Against this national background our used car sales for the four months are up 2.9% with margins showing significant improvement. Overall profitability continues to benefit from stable wholesale pricing and the substantial cost reductions which we made last year.

Our aftersales market opportunity has declined due to lower new car sales over the last 12 months. This was anticipated and our cost base was reset resulting in a 4% increase in profits in this part of the business. Other initiatives were also put in place to retain and attract owners of vehicles out of manufacturer warranty periods. We expect this to continue to be a growth area of the business.

Overall trading for this period, and indeed for the year to date, has been ahead of our original plan which we put in place at the start of the year. Since then we have absorbed higher than planned pension scheme financing costs which are expected to be around £4 million for the year. This is a non cash accounting cost which, due to its relative size compared to our underlying trading profits this year, we will disclose as a non trading, one off expense at the year end.

Outlook

Whilst the scrappage incentive scheme has been a welcome boost to certain parts of the new car market, our significant profit growth this year over last year has been largely driven by good cost control and an improved used car performance. We expect profitability to continue to benefit from a stable used car and aftersales market for the remainder of the year. New car sales may benefit in December if consumers elect to bring forward purchases prior to the year end VAT increase. We do not expect that to have a material effect on this year's results.

We are confident that this year's results will be in line with our current expectations and ahead of our original plan for the year. As we move into next year we will not have the same constraints on working capital investment which were in place during refinancing discussions at the start of this year and which held back profitability in that period especially in our used car business.  

We are already looking forward to next year during which we intend to continue to grow used car sales and capture more after sales business. We see many positive trends in our new car sales business and we expect to continue to see profit improvement next year from this part of the business.

We expect our balance sheet to be in line with our plan at the end of the year and lender covenants comfortably achieved.

Enquiries:

 Pendragon PLC  Trevor Finn, Chief Executive     Tel:  01623 725114
                David Forsyth, Finance Director

 Finsbury       Rollo Head/Gordon Simpson        Tel:  0207 2513801

This information is provided by RNS
The company news service from the London Stock Exchange
 
  END 
 
IMSUNVBRKKRAAAA

Form TR-1 with annex. FSA Version 2.1 updated April 2007

For filings with the FSA include the annex For filings with issuer exclude the annex

TR-1: Notifications of Major Interests in Shares

1. Identity of the issuer or the underlying Pendragon Plc

issuer of existing shares to which voting rights are attached: 2. Reason for notification (yes/no)
An acquisition or disposal of voting rights Yes

An acquisition or disposal of financial instruments which may result No in the acquisition of shares already issued to which voting rights are attached
An event changing the breakdown of voting rights No

Other (please specify):______________ No

3. Full name of person(s) subject to AEGON UK Group of Companies

notification obligation: 4. Full name of shareholder(s) (if different from 3):
5. Date of transaction (and date on 12th November 2009

which the threshold is crossed or reached if different):
6. Date on which issuer notified: 16th November 2009

7. Threshold(s) that is/are crossed or 6% reached:

8: Notified Details A: Voting rights attached to shares Class/type of Situation previous Resulting situation after the triggering
shares to the triggering transaction
transaction

If possible use ISIN code

Number of Number of Number of Number of voting Percentage of
shares voting shares rights voting rights
rights
Direct Indirect Direct Indirect

GB00B1JQBT10 45,040,046 45,040,046 46,040,046 40,005,475 6,034,571 6.10 0.92

B: Financial Instruments Resulting situation after the triggering transaction
Type of Expiration Exercise/ No. of voting Percentage of
financial date conversion rights that may be voting rights
instrument period/date acquired (if the
instrument
exercised/
converted)

Total (A+B)
Number of voting rights Percentage of voting rights

46,040,046 6.95%

9. Chain of controlled undertakings through which the voting rights and /or the financial instruments are effectively held, if applicable: AEGON UK Group of companies - parent undertaking of: AEGON Asset Management UK plc AEGON Investment Management UK ltd.

AEGON ICVC

Proxy Voting:
10. Name of proxy holder: AEGON UK Group of Companies

11. Number of voting rights proxy holder will cease to hold: 12. Date on which proxy holder will cease to hold voting rights:

13. Additional information: AEGON UK Group of Companies consists
of:

AEGON Asset Management UK plc

AEGON Investment Management UK ltd

14 Contact name: Richard Maloney

15. Contact telephone name: 01623 725 200

For notes on how to complete form TR-1 please see the FSA website.

Note: Annex should only be submitted to the FSA not the issuer

Annex: Notification of major interests in shares

A: Identity of the persons or legal entity subject to the notification obligation
Full name AEGON Asset Management UK plc

(including legal form of legal entities)
Contact address AEGON House,

(registered office for legal entities) 3 Lochside Avenue,
Edinburgh Park,

Edinburgh,

Phone number & email 0870 60 90 101

Other useful information Ian G Young, Company secretary,

(at least legal representative for 0131 549 6398

legal persons)

B: Identity of the notifier, if applicable Full name Contact address Phone number & email Other useful information (e.g. functional relationship with the person or legal entity subject to the notification obligation)

C: Additional information

END

For filings with the FSA include the annex For filings with issuer exclude the annex

TR-1: NOTIFICATION OF MAJOR INTEREST IN SHARESi

1. Identity of the issuer or the underlying PENDRAGON PLC

issuer of existing shares to which voting rights are attached: ii

2 Reason for the notification (please tick the appropriate box or boxes):

An acquisition or disposal of voting rights YES

An acquisition or disposal of qualifying financial instruments which n/a

may result in the acquisition of shares already issued to which voting rights are attached
An acquisition or disposal of instruments with similar economic effect n/a

to qualifying financial instruments
An event changing the breakdown of voting rights n/a

Other (please n/a

specify):

3. Full name of person(s) subject to UBS Investment Bank

the notification obligation: iii
4. Full name of shareholder(s) UBS AG London Branch

(if different from 3.):iv
5. Date of the transaction and date 9 November 2009

on which the threshold is crossed or reached: v
6. Date on which issuer notified: 11 November 2009

7. Threshold(s) that is/are crossed 6%

or reached: vi, vii

8. Notified details: A: Voting rights attached to shares viii, ix

35,885,08335,885,083

Class/type of Situation previous Resulting situation after
shares to the triggering the triggering
transaction transaction

if possible Number Number Number Number of % of voting
using of of of shares voting rights x
the ISIN CODE Shares Voting rights
Rights
Direct Direct xi Indirect Direct Indirect
xii

Ordinary Share 39,946,609 39,946,609 6.03%

(GB00B1JQBT10)

B: Qualifying Financial Instruments Resulting situation after the triggering transaction
Type of financial Expiration Exercise/ Number of voting % of voting
instrument date xiii Conversion Period rights that may be rights
xiv acquired if the
instrument is
exercised/
converted.

C: Financial Instruments with similar economic effect to Qualifying Financial Instruments xv, xvi Resulting situation after the triggering transaction
Type of Exercise Expiration Exercise/ Number of voting % of voting
financial price date xvii Conversion rights instrument rights xix, xx
instrument period refers to
xviii

Nominal Delta

Total (A+B+C)
Number of voting rights Percentage of voting rights

Orindary Shares 6.03%

9. Chain of controlled undertakings through which the voting rights and/or the financial instruments are effectively held, if applicable: xxi

Proxy Voting: 10. Name of the proxy holder: 11. Number of voting rights proxy holder will cease to hold: 12. Date on which proxy holder will cease to hold voting rights:

13. Additional information:

14. Contact name: Richard Maloney

15. Contact telephone number: 01623 725200

Note: Annex should only be submitted to the FSA not the issuer Annex: Notification of major interests in sharesxxii

A: Identity of the persons or legal entity subject to the notification obligation

Full name (including legal form of legal entities) Contact address (registered office for legal entities) Phone number & email Other useful information (at least legal representative for legal persons)

B: Identity of the notifier, if applicable

Full name Contact address Phone number & email Other useful information(e.g. functional relationship with the person or legal entity subject to the notification obligation)

C: Additional information

For notes on how to complete form TR-1 please see the FSA website.

END

For filings with the FSA include the annex For filings with issuer exclude the annex

TR-1: NOTIFICATION OF MAJOR INTEREST IN SHARESi

1. Identity of the issuer or the underlying PENDRAGON PLC

issuer of existing shares to which voting rights are attached: ii

2 Reason for the notification (please tick the appropriate box or boxes):

An acquisition or disposal of voting rights YES

An acquisition or disposal of qualifying financial instruments which n/a

may result in the acquisition of shares already issued to which voting rights are attached
An acquisition or disposal of instruments with similar economic effect n/a

to qualifying financial instruments
An event changing the breakdown of voting rights n/a

Other (please n/a

specify):

3. Full name of person(s) subject to UBS Investment Bank

the notification obligation: iii
4. Full name of shareholder(s) UBS AG London Branch

(if different from 3.):iv
5. Date of the transaction and date 20 October 2009

on which the threshold is crossed or reached: v
6. Date on which issuer notified: 22 October 2009

7. Threshold(s) that is/are crossed 6%

or reached: vi, vii

8. Notified details:

A: Voting rights attached to shares viii, ix

Class/type of Situation previous Resulting situation after
shares to the triggering the triggering
transaction transaction

if possible Number Number Number Number of % of voting
using of of of shares voting rights x
the ISIN CODE Shares Voting rights
Rights
Direct Direct xi Indirect Direct Indirect
xii

Ordinary Share 105,579,293 105,579,293 35,885,083 35,885,083 5.00%

(GB00B1JQBT10)

B: Qualifying Financial Instruments Resulting situation after the triggering transaction
Type of financial Expiration Exercise/ Number of voting % of voting
instrument date xiii Conversion Period rights that may be rights
xiv acquired if the
instrument is
exercised/
converted.

C: Financial Instruments with similar economic effect to Qualifying Financial Instruments xv, xvi Resulting situation after the triggering transaction
Type of Exercise Expiration Exercise/ Number of voting % of voting
financial price date xvii Conversion rights instrument rights xix, xx
instrument period refers to
xviii

Nominal Delta

Total (A+B+C)
Number of voting rights Percentage of voting rights

Orindary Shares 5.00%

9. Chain of controlled undertakings through which the voting rights and/or the financial instruments are effectively held, if applicable: xxi

Proxy Voting: 10. Name of the proxy holder: 11. Number of voting rights proxy holder will cease to hold: 12. Date on which proxy holder will cease to hold voting rights:

13. Additional information:
14. Contact name: Richard Maloney

15. Contact telephone number: 01623 725200

Note: Annex should only be submitted to the FSA not the issuer Annex: Notification of major interests in sharesxxii

A: Identity of the persons or legal entity subject to the notification obligation

Full name (including legal form of legal entities) Contact address (registered office for legal entities) Phone number & email Other useful information (at least legal representative for legal persons)

B: Identity of the notifier, if applicable

Full name Contact address Phone number & email Other useful information(e.g. functional relationship with the person or legal entity subject to the notification obligation)

C: Additional information

For notes on how to complete form TR-1 please see the FSA website.

END