Shares in the UK's biggest car dealer Pendragon have rocketed this morning after the chairman and chief executive revealed they had bought a significant chunk of stock.
The firm, which owns brands such as Evans Halshaw and Stratstone, suffered a crash on Monday after it issued a surprise profit warning. Its share price closed down 17 per cent, and skidded a further 6.3 per cent on Tuesday.
But today, chairman Chris Chambers – who now holds 0.14 per cent of Pendragon's shares – and chief executive Trevor Finn – who owns 1.72 per cent – together bought up 2.51m shares, in a sign of confidence for the company’s future.
Chambers purchased £117,249 worth of shares at 22.99p apiece, while Finn grabbed £445,000 worth at 22.25p apiece.
Pendragon's price at the close yesterday was 22.25p. At the time of writing, this had motored up 11.24 per cent to 24.75p.
The stall at Pendragon earlier this week came as it announced pre-tax profit was expected to be around £60m in 2017, compared to expectations of £75.2m.
The firm blamed the downturn on falling demand for new cars and a consequent price correction in the used car market.
UK car manufacturing output fell in August for the fourth month this year, according to data from the Society of Motor Manufacturers and Traders (SMMT), partly due to dropping domestic demand.
Earlier this month, SMMT data also showed that new car registrations declined in September for the sixth month in a row.