Pendragon released a trading update yesterday stating that it increased its guidance for FY21 underlying PBT to £70m, up from £55-60m last month. The Group attributes this to the continued momentum in the used car market as we have seen across the sector and is also backed up looking at the latest September data from CAP HPI. As a result of this update, we have increased our FY21 underlying PBT forecast by 25% to £70.2m. We have not upgraded our forecasts in the outer years yet and are mindful o
Companies: Pendragon PLC
Pendragon has announced interim results for the six months to 30 June 2021, which are ahead of guidance and our expectations. The Group has made strong progress in terms of growth, cost efficiencies and strategic implementation to ensure further progress can be made.
Pendragon released a trading update last week that increased its guidance for FY21 underlying PBT to £55-60m, up from £45-50m in the June pre-close update. The Group attributes this to the continued momentum in the used car market throughout July as we have seen across the sector and is also backed up looking at the latest data from CAP HPI. As a result of this update, we have increased our FY21 underlying PBT forecast by 18.6% to £55.6m. We have not upgraded our forecasts in the outer years ref
In this note we focus on five key themes that we believe will shape the motor retail sector in the short-to-medium term. These are digital sales trends, electrification, the agency model, vehicle supply, and the economic outlook. The dealer groups have shown a great deal of resilience and flexibility throughout the Covid-19 pandemic – we expect them to continue to adapt and work closely with OEMs as the industry evolves.
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Pendragon has issued a positive H1 trading update and reinstated its guidance for the full year. While short-term profitability has been boosted by the strength of used car prices, we expect the group to show some progress from 2021 into 2022 reflecting the continued recovery in new car sales from 2020A and operating cost savings. The group looks on track to deliver its target of underlying PBT of £85-90m outlined last September and may be able to achieve this before the original deadline of 202
Pendragon has delivered a strong Q1 performance with underlying PBT of £10.8m vs. a loss of £2.3m last year. Profit improvements are being driven by market outperformance, stronger margins, and good cost control. We believe the risk/reward profile remains positive from here.
FY20 results from Pendragon show good progress in testing times. While there is a lot to do to hit its FY25 targets, we believe the risk/reward profile is positive from here despite recent share price gains. We remain happy with our original investment thesis set out in our initiation note in October.
Pendragon was making good progress in its turnaround when COVID-19 struck but appears to be coming through the crisis in good shape to date. Despite a £44m hit to profits during lockdown, we can envisage a modest underlying profit for the full year without further shocks. Today’s IMS is supportive of this view. The group’s new strategy should help deliver a transformation in the value of the business, long-term. The potential is not reflected in the current price which is weighed down by macro w
In this note and following the SMMT June data released earlier this week, we look at the key dynamics of the sector during H1 2020, and the prospects for the rest of the calendar year. While no direct stimulus for the sector was announced in the recent summer statement, customers who were considering their purchasing options now have the clarity to move ahead with buying decisions that were potentially on hold.
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In this note and following the SMMT June data released yesterday, we look at the key dynamics of the sector during H1 2019 and how this is likely to impact the rest of the calendar year. The dealers have challenges on several different fronts, which could lead to some earnings pressure. However, we do believe valuations have reached a trough point, balance sheets remain strong, and FCF should start to steadily build as the capex cycle for most dealers has come to an end.
Companies: CAMB LOOK MMH VTU PDG
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The Pendragon share price has demonstrated resilience in the context of the wider liquidity squeeze in UK small and mid cap stocks that has recently driven a rotation in sentiment from growth to value. Whilst the group cannot be immune to wider industry pressures highlighted in the Q318 IMS, we believe the clear strategy to build its used car business and software platform will provide for a return to growth in FY19. This will be funded through strategic disposals and lower capital commitments t
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Guild Esports has terminated its largest sponsorship deal to date and entered advanced negotiations for a potentially larger replacement contract that the company hopes to close before the end of the year.
Companies: Guild Esports PLC
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Arrow Exploration Corp. (AIM: AXL ; TSXV: AXL) , the oil and gas exploration and production company, has conditionally raised approximately £8.8m and is due to complete its dual listing on AIM on 25 Oct. Market cap c£13.1m.
Devolver Digital to join AIM, an award-winning digital video games publisher and developer in the indie games space. Recently awarded indie 'Publisher of the Year 2021' by GamesIndustry.biz.
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Devolver Digital to join AIM, an award-winning digital video games publisher and developer in the indie games space. Recently awarded indie 'Publisher of the Year 2021' by GamesIndustry.biz. Offer TBA. Due early Nov.
Life Science REIT to join AIM raising up to £100m. This will be the first London listed real estate investment trust (REIT) focused on UK life science properties providing investors with exposure
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Studio Retail has announced a H1 trading update (to Sep), detailing strong product sales growth of 38% on a 2 year basis and up marginally YoY (against a tough comp). Financial services revenue was up 11%, also. Supply chain issues have been well managed by the group, as it took the decision in the summer to secure its supply chain. Any additional costs incurred/price inflation will be recouped from a higher pricing strategy in H2. Positively, going into the peak trading period, market data is p
Companies: Studio Retail Group plc
Exactly one year ago, the FTSE 100 closed at 5,862, having fallen 100 points on the day, the lowest point since mid-May 2020, due in part, to the strength of sterling vs US$ at $1.34. One year on, the FTSE 100 has risen to 7,119, a rise of 21%, it remains 7% below the peak in January 2020. From an international viewpoint, US and European markets continue to trade at record highs. The US Federal Reserve is close to withdrawing some of its economic support this year as inflation picks up and the e
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DPP has reported satisfactory interim results given the Covid challenges which continued to impact over Q3, and the fact that synergies have not yet fully come through. However, as normalisation returns and operational synergies start to flow through, it is pleasing to see trading has rebounded strongly with double-digit LFL sales in October. This news is slightly tempered by a soft Q3 and sector wide headwinds (similar to the UK) prompting a lowering of our 3 year forecasts, meaning positive EB
Companies: DP Poland PLC
Guild Esports provided an encouraging operational update and published H1 results yesterday. H1 financial results do not reflect the company’s substantial progress on sponsorships signings, tournament wins and fanbase growth:
Vertu has delivered an impressive set of record H1 results, which showed strong volume outperformance and pricing discipline across all markets. We are raising our FY22 forecasts by 19% to reflect current management guidance and leave our FY23/24 forecasts unchanged for now. Our near term value per share increases to 86p implying a healthy risk reward profile from here.
Companies: Vertu Motors PLC
G4M has delivered an H1 trading update in line with internal expectations against the very strong H1 trading performance last year and is on track to meet full-year consensus market expectations. UK sales performance was the stand-out feature, coming in flat on last year. Europe’s performance was hindered by post-Brexit challenges, down 16% on last year, though up 14% on a two-year view. Group sales are down 8% in aggregate, but up 31% on a two-year view. Gross margin has held up well, being dow
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Strong performance in H1 means full year EBITDA is now expected to be no less than £5.0m (£6.9m post-IFRS16), driving an EPS upgrade of over 20% while potentially still leaving risk to the upside depending on trading in the traditionally quieter Q4 season. This has been driven in part by further gross margin gains and operational enhancements where further strides are likely. Today’s other news relates to the launch of an in-territory EU fulfilment centre in spring 2022 which will facilitate maj
Companies: Angling Direct Plc
Netflix surged past the target price from our last report as the company reported an exceptionally good result with strong subscriber growth and earnings. The company added as many as 4.38 million subscribers in the quarter, well above the 2.2 million in the corresponding quarter of the previous year on account of the huge success of many of its originals such as Squid Game, Lupin and Money Heist’s latest season. Its 213.56 million paid subscribers across the globe have grown by 9.4% year over y
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Costco has been on a roll as the company had an outstanding month of September with net sales of $19.5 billion for the 5-week period ended October 3, 2021, up 15.8% year over year. The company saw a staggering 14.3% rise in comparable sales with increased consumer traffic as the average American has become far more comfortable shopping in-store today. This comes after a strong fourth quarter of fiscal 2021 where Costco reported an increase in net sales of 17.5% to $61.44 billion. The management
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Lookers upgraded its FY21 profit expectations following a continued strong Q321 financial performance in positive but increasingly challenging conditions. Margin attainment is excellent, offsetting lower volumes in both new and used segments with high-margin aftersales remaining robust. The positive effect on cash flow is reflected in adjusted net cash (excluding leases) of c £30m at Q321. We upgrade our FY21 PBT and EPS by 35% and 34%, respectively, to reflect the exceptional trading. While FY2
Companies: Lookers plc
Despite the encouraging H1 performance, which was partially explained by the staycation-driven increase in demand, and a faster revenue recovery for its UK hotel business, Whitbread’s H2 profit generation should be limited by inflationary pressures and the restrained activities in Germany.
Companies: Whitbread PLC
REACT Group plc (REACT), the leading specialist cleaning and decontamination group, has announced an update for the year to end September 2021 which included a full six months of Fidelis. With organic revenue growth running at c.20%, including the REACT business and Fidelis, the Board stated that the Group achieved c.77% growth in revenues to c.£7.7m and adjusted EBITDA of between £725,000 and £775,000. This EBITDA figure is, however, below our earlier forecast as a result of a period of tempora
Companies: REACT Group Plc