Car dealer Pendragon joins ranks of UK firms issuing profit warnings – business live

Shares in British car dealership Pendragon plunge after it warns that demand for new cars in the UK is sliding

The Evening Standard’s City expert, Simon English, is aghast at Pendragon’s profits warning:

Spectacular profit warning from Pendragon. Looks like the bottom just fell out of the UK car industry. The end of vroom vroom Britain…

In another surprise development….Pendragon’s chairman, Mel Egglenton, has stepped down for personal reasons, with immediate effect.

The company has appointed Chris Chambers, the senior independent director, to replace him.

Shares in Pendragon have plunged by almost 20% at the start of trading.

They’ve slumped to their lowest level in over four years, as investors react to today’s profits warning from the car dealer.

Pendragon, the UK car dealership firm, has sent a shiver through the City this morning by issuing a profits warning.

The decline in demand for new cars and the consequent used car price correction has impacted this year’s profit outturn…..

During the quarter as consumer confidence waned we experienced significant market pressures.

Pendragon issues profit warning. Now sees FY adj PTP at £60m vs consensus of about £75m

In the premium sector we have experienced unprecedented pressure on new vehicle margin caused by certain manufacturers continuing to force vehicles into the market despite softening demand.

We expect new car registrations to continue to reduce for the remainder of this year and into next year with the volume franchise reductions easing first, followed by a normalisation of the registrations of premium vehicles.

Good morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business.

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