TIM RICHMOND | ARDEN
Overall, these results are encouraging and represent the first step in the recovery story. We believe the shares are undervalued, but expect shares will perform when the other profit growth expected in 2010 becomes apparent. Used car margins are stable and are expected to remain so.
ERIC WALLBANK | ERNST & YOUNG
Pendragon’s results are no surprise in that the scrappage scheme has helped. But there are tougher times ahead for sales and of course for servicing which is important for the car industry. There may be an upturn in middle market or luxury cars as they have not been boosted by the scrappage scheme.
SANJAY VIDYARTHI | NOBLE
At this early stage in the year, we think our underlying thesis for 2010 remains intact: weak new cars (but post scrappage fears overdone), offset by stronger used and increased aftersales penetration. Stratstone profit well ahead of expectations as premium brand sales rebounded.