Pendragon shares plummet by over a fifth
Discussion
As we have had no Stratstone news this week..........
Pendragon shares plummet by over a fifth
01 July 2008
Dealer group's market capitalisation now stands at under £94m
Pendragon shares plummeted by over a fifth yesterday after the giant car dealer group said it would struggle to forecast profits for the year following a sharp drop in car sales in May and June.
The shares were down by over 20 per cent, equivalent to a 4p decline, to 15.5p in morning trading yesterday and they fell by a further 5 per cent to just 14.25p this morning.
The current share price of the company hands Pendragon a market capitalisation £93.48m.
A company statement yesterday said the 9.5 per cent fall in new car registrations in May for retail customers coupled with a15.4 per cent decline for small business users looked to have continued into June.
“It is unclear at this time as to whether the level of activity decline seen in May which has so far continued into June will persist for the remainder of the year,2 said the company statement.
“Our current view is that it will and that there will be continuing exposure to any further slowdown.”
The dealer group has already moved to reduce its fixed cost base with the announcement that it was making 500 workers redundant.
However, despite the share price fall Pendragon also said was currently trading profitably and was generating cash.
The company's AGM in April predicted profits would be healthy but after May's car registrations were published in early June, the group's brokers Citigroup and Arden Partners slashed profit forecasts for 2008 and 2009 by more than 20 per cent.
Pendragon said it believed its sales volumes had held up well compared with the market but tactics such as offering discounts to push sales resulted in slim margins for dealers.
Pendragon shares plummet by over a fifth
01 July 2008
Dealer group's market capitalisation now stands at under £94m
Pendragon shares plummeted by over a fifth yesterday after the giant car dealer group said it would struggle to forecast profits for the year following a sharp drop in car sales in May and June.
The shares were down by over 20 per cent, equivalent to a 4p decline, to 15.5p in morning trading yesterday and they fell by a further 5 per cent to just 14.25p this morning.
The current share price of the company hands Pendragon a market capitalisation £93.48m.
A company statement yesterday said the 9.5 per cent fall in new car registrations in May for retail customers coupled with a15.4 per cent decline for small business users looked to have continued into June.
“It is unclear at this time as to whether the level of activity decline seen in May which has so far continued into June will persist for the remainder of the year,2 said the company statement.
“Our current view is that it will and that there will be continuing exposure to any further slowdown.”
The dealer group has already moved to reduce its fixed cost base with the announcement that it was making 500 workers redundant.
However, despite the share price fall Pendragon also said was currently trading profitably and was generating cash.
The company's AGM in April predicted profits would be healthy but after May's car registrations were published in early June, the group's brokers Citigroup and Arden Partners slashed profit forecasts for 2008 and 2009 by more than 20 per cent.
Pendragon said it believed its sales volumes had held up well compared with the market but tactics such as offering discounts to push sales resulted in slim margins for dealers.
There have been 'rumblings' in the Pendragon camp for a while - and no!!- it wasn't me shouting the odds at them
Mr Jack Petchey has been at work behind the scenes, and no doubt there are changes afoot - see this April article
http://www.telegraph.co.uk/money/main.jhtml?xml=/m...
The waters are muddied somewhat at present as a consequence of the most recent developments in both the financial and property markets.
Whatever happens, I've no doubt that Corvette owners will be right at the bottom of the pile of 'interested parties' when considerations are made as to what course of action to take.
Caveat Emptor
Mr Jack Petchey has been at work behind the scenes, and no doubt there are changes afoot - see this April article
http://www.telegraph.co.uk/money/main.jhtml?xml=/m...
The waters are muddied somewhat at present as a consequence of the most recent developments in both the financial and property markets.
Whatever happens, I've no doubt that Corvette owners will be right at the bottom of the pile of 'interested parties' when considerations are made as to what course of action to take.
Caveat Emptor
songman3 said:
There have been 'rumblings' in the Pendragon camp for a while - and no!!- it wasn't me shouting the odds at them
Mr Jack Petchey has been at work behind the scenes, and no doubt there are changes afoot - see this April article
http://www.telegraph.co.uk/money/main.jhtml?xml=/m...
An interesting read. Mr Jack Petchey has been at work behind the scenes, and no doubt there are changes afoot - see this April article
http://www.telegraph.co.uk/money/main.jhtml?xml=/m...
Can we declare Corvette a Charity? Perhaps then Mr Petchey could give a funding grant from his "£1bn empire"
It may be academic as GM continues to slide down the pan with drastically reduced sales and bankruptcy never that far away.
http://jalopnik.com/397767/merrill-lynch-gm-bankru...
http://jalopnik.com/397767/merrill-lynch-gm-bankru...
LuS1fer said:
It may be academic as GM continues to slide down the pan with drastically reduced sales and bankruptcy never that far away.
http://jalopnik.com/397767/merrill-lynch-gm-bankru...
http://www.pistonheads.com/gassing/topic.asp?h=0&a...http://jalopnik.com/397767/merrill-lynch-gm-bankru...
- *******
- ********
waiting what company is firing half of its management FIRST, and try to go
on with the same motivated working force plus a now
motivated management.Rainer-CH
Gassing Station | Corvettes | Top of Page | What's New | My Stuff