Car dealer Pendragon posts loss

Car dealer Pendragon has plunged to a loss after a “challenging” period and will not pay a dividend.

The underlying loss in the half year was £32.2m compared with a £28.4m profit a year earlier.

“The principal driver of the group’s performance was the reduction in the level of used car stock to more appropriate levels, which was actively managed during the second quarter through a combination of both lower retail pricing and clearance through trade auction channels.

“These necessary actions resulted in significant losses in the period, exacerbated by market-driven reduction in used car values.”