UK car dealer Pendragon turns profitable after first-half loss

FILE PHOTO: A man passes cars on a showroom forecourt in west London, Britain November 6, 2008. REUTERS/Toby Melville/File Photo

(Reuters) – British auto dealer Pendragon PDG.L said on Tuesday strong performance since the easing of COVID-19 lockdowns helped it return to profitability in July and August, after posting a smaller first-half loss.

However, the company, which operates the Evans Halshaw, Stratstone, Quickco and Car Store brands, did not reinstate full-year outlook over uncertainties that may exist once the government withdraws its support programs.

Pendragon said the pandemic would cost the company 44.1 million pounds this year.

The global health crisis has compounded troubles for UK car dealers, which were already facing muted demand and pressured margins on Britain’s decision to leave the European Union.

Pendragon in July announced plans to cut 1,800 jobs and close 15 loss-making stores as it dealt with pandemic-induced disruptions. Rivals Inchcape INCH.L and Lookers

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