News

Pendragon forecasts £30m loss

10 November 2008 07:38:00

Car dealer Pendragon has forecast an underlying loss of £30m this year after a recent marked deterioration in the new and used car markets.

That forecast does not include a raft of one-off charges for the £3m cost culling of 2,500 jobs or 20% of the workforce. Some 75 dealerships have been also been shut at a cost of £12m.

Pendragon also confirmed it is considering the future of its software division Pinewood after press reports yesterday suggested it is up for sale.

"Assuming no significant further downturn in economic activity between now and the year end, we expect to report a full year loss before exceptional items for 2008 of £30m. The group continues to generate positive operating cashflows" it said.

"Notwithstanding a further reduction in the new car market the positive actions taken on the cost base and the favourable impact of the recent interest rate cut lead us to be optimistic of improved trading next year." the statement concluded.

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