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UPDATE 1-Pendragon upbeat on 2014 after third-quarter profit rise

(Adds analyst comment, market context, share price)

LONDON, Oct 31 (Reuters) - Britain's largest car dealership Pendragon said on Friday its full-year performance would be ahead of expectations after an increase in visits to its website boosted sales, which contributed to a rise in third-quarter profits.

Pendragon, which runs more than 250 retail outlets and trades under the names Stratstone, Evans Halshaw and Quicks across Britain, said its operating profit rose by 28.8 percent in the three months to Sept. 30.

"Given the continued strong performance in quarter three, we will be ahead of expectations for the full year," Chief Executive Trevor Finn said in a statement, without providing further details.

The company is expected to post full-year operating profit of 86 million pounds, according to analysts polled by Thomson Reuters, up from 77 million pounds in 2013.

Pendragon's shares were up more than 4 percent by 0821 GMT.

Analysts at Jefferies, which has a "buy" rating on the company, said it was upgrading gross margins by roughly 10 basis points for used and new sales.

Pendragon said a 17 percent increase in visits to its website, which it has focused on improving over the last year, had been fundamental to a strategy which has seen both used and new car sales rise.

High-definition videos of selected vehicles allow customers to browse online before visiting to a dealership.

Friday's results are a further sign of Britain's buoyant car market, with new vehicle sales expected to hit 2.45 million in 2014, returning to levels seen before the 2008-09 financial crisis.

Earlier this week, competitor Lookers forecast better than expected full-year results, benefiting from the recovery in the British new vehicle market. (1 US dollar = 0.6262 British pound) (Reporting by Costas Pitas; editing by Karolin Schaps and Jane Merriman)