Pendragon Share Discussion Threads

[jeffian] 29/10/2014 16:26

There was an IMS on 28/10 last year. Are we due one?

[mortimer7] 29/10/2014 10:47

Article from motortrader.com:
Evans Halshaw, the volume arm of Pendragon, the UK’s largest dealer group is increasingly targeting webuyanycar customers to boost business.
The dealer group is using social media and online video to promote its buying prowess, claiming to offer consumers better prices.
On the Evans Halshaw website and Twitter the group outlined its buying strategy.
“When it comes to selling your car it pays to come direct to Evans Halshaw. We pay more than We buy Any Car. Guaranteed.
“By coming to Evans Halshaw directly, you’ll be cutting out the middle men such as car buying websites.
“These websites take their cut before selling onto auction houses, and the auction houses then take their cut before selling on to car dealers, meaning you get a lower valuation for your car.
“By coming to us direct, we’ll be able to give you a better price than other websites that claim to buy any car,” it said.

[jeffian] 28/10/2014 22:54

Good IMS from Lookers today. About time PDG moved up again to reflect ongoing strong market conditions.

[mortimer7] 14/10/2014 14:22

Oct 2014: In a listing of Europes top car dealers by revenue, Pendragon was number one with £3.8 billion.
This achievement follows their recent announcement of intention to increase their number of UK outlets by 40 sites.

[jeffian] 06/10/2014 15:38

Unfortunately, PDG seems to be immune to good news.

8-(

[mortimer7] 06/10/2014 09:08

Good news again for dealer groups with SMMT new car registration figures out for month of September this morning:
425,861 new cars registered in the month, a rise of 5.6% on September 2013 and the biggest September since 2004.
New ‘64’ numberplate boosts volumes, with September marking the 31st consecutive month of growth in the new car market.
Registrations for the year-to-date reach 1,958,196 – up 9.1% on January-September 2013

[the big fella] 23/9/2014 17:02

Nice finish to the day.

[flyfisher] 16/9/2014 09:05

Sale of empty premises.

hxxp://www.yorkshirepost.co.uk/business/business-news/pendragon-sells-two-yorkshire-showrooms-to-independent-builders-merchant-1-6833164

[the big fella] 04/9/2014 12:21

I am prepared to wait.

[joe say] 04/9/2014 11:42

new car sales continue (some 50% of PDG's revenues) to grow year on year and yet a downward share price mov't for PDG

And yet researchers would say markets price all knowledge in - one wonders

[jeffian] 28/8/2014 19:18

I hope so. This is boring!

[the big fella] 28/8/2014 16:15

Sizeable trade just gone through. Maybe that will signal the next run up :)

[the big fella] 21/8/2014 14:33

I have added to my position today.These look good value to me.

[mortimer7] 12/8/2014 14:19

The average dealer saw profits rise 19.7% to £140k in half one of 2014 compared to the same period last year....
hxxp://www.motortrader.com/automotive-news/average-dealer-profits-rise-20-first-half-140k-update/

[mortimer7] 11/8/2014 16:26

Don't think the market is peaked yet for Motor retailers, because even when New Car Sales level out the After Sales business growth is running a year behind, at least, and After Sales is the most profitable area for dealerships:-
Actual car sales profit is a low margin business, but good profits can be made from servicing vehicles. Dealers traditionally aim for what they call a 100% 'absorption rate', where the profit from servicing vehicles they have sold covers running costs so the cash made on the sale is pure profit.

[jeffian] 06/8/2014 13:13

Tempus in the Times is as confused as we are as to why the share price is stuck so firmly where it is.

[kulvinder] 06/8/2014 12:45

If that is as good it gets M7, it could all be down hill from here, coz the growth already in the price?

[mortimer7] 06/8/2014 09:03

SMMT Car registration figures out for July this morning:
172,907 new cars registered in July, a rise of 6.6% and the 29th consecutive month of growth.

[staceywhitters] 05/8/2014 20:13

Why would anyone want to see this lot make further acquisitions, surely everyone knows they nearly went bust last time they got the chequebook out. If something has been under performing in this car market its probably a dog which I doubt can be turned around. Use excess cash to reduce debt then start buying the shares back

[jaf111] 05/8/2014 12:43

well put Mortimer.....you have saved me writing a very similar response!

[dimpkins] 05/8/2014 12:22

Cheers Mortimer, good points, group definitely in a good place at the moment, helped by the buoyant market, I just wonder whether the present executive management are the right people to take us forward

[mortimer7] 05/8/2014 11:44

dimpkins, I accept your point on past acquisitions.
However, the last couple of years & current times offer unique circumstances in the Motor retail sector for the bigger players to pick off under performers & improve their franchise portfolio, some of them very cheaply.
It's evident the way Vertu and, on a smaller scale, Cambria have flourished using this strategy. Albeit they are predominantly equity financed rather than debt as in PDGs case. This is the first time for a while that PDG have had the cash to consider this kind of move.
If they do become acquisitive the key will be to be selective in terms of specific sites & not go looking to take out larger groups.
All that said, if debt reduction does become the route, whilst conservative, it is difficult to argue against the wisdom of this.

Being profitable creates a nice kind of problem.

[dimpkins] 05/8/2014 09:36

Mortimer7 PDG's history of acquisitions is not the greatest with the exception of Stratstone in the early days, any spare cash would be better used getting the debt down. Interest saved is likely to enhance EPS more than an under performing car site

[jaf111] 05/8/2014 08:53

Agreed Mortimer....the sector very fragmented so must be plenty of opportunities to hoover up under-performing businesses and taking out costs