Pendragon doubles dividend sending shares racing higher

Sales at Stratstone which is owned by Pendragon pushed year end profits 36 per cent up.
CAR DEALERSHIP Pendragon doubled its dividend after it reported a 36 per cent jump in underlying pre-tax profit in 2014.

As profit rose to £60.2m, the company paid 0.6 pence per share and earnings per share went up by more than a third.

“We have doubled the dividend to reward our shareholders and our strong balance sheet and cashflow generation will ensure we can maintain this dividend level alongside our expansion plans,” Pendragon boss Trevor Finn said.

“We thank our people for their continued support in helping to deliver our performance and we are looking forward to 2015.”

The company’s increase in demand for online second hand cars contributed to the four per cent rise in revenue to £4bn.

Finn said the company’s new service, which would allow customers to order any type of vehicle to their closest dealership, would increase car sales further.

However, Pendragon’s shares closed 3.25 per cent lower after touching its highest value since August 2009. The company said it expects to increase the dividend for the 2015 interim payout.