Updates and Ideas

Pendragon - Car dealer to grow eps to 5.1p by FY25

December 2020

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

During the summer my wife’s best friend, who had never owned a car in her life, decided to buy one, joining the legions switching from public transport to private vehicles due to concerns over Covid-19. That nudged me into looking at fully listed motor dealer Pendragon, which after enduring a torrid £41m loss in H1 ’20, enjoyed a spectacular rebound in Q3 ‘20 with an 810% increase in pretax profit to £27.2m.Originally part of conglomerate Williams, Pendragon de-merged in 1989 and subsequently grew by making several strategic acquisitions including Stratstone (1992), Evans Halshaw (1999) and Reg Vardy in 2005. Today, it consists of four main parts: UK franchised motors; standalone used cars; vehicle sof ...

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With small companies there is an above average degree of risk compared to buying blue chips. Please be aware that we have not assessed the suitability of any of these investments for you. The newsletter simply states a personal view and diarises the editor’s investment decisions. Please speak to your stockbroker or other qualified individual to ascertain whether any of these companies mentioned would form useful additions to your own portfolios. Past performance is no indication of future success.

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