Insider Media Limited

Pendragon, the UK’s largest car retail group, is reporting a recovery in the car sales market after revealing underlying pre-tax profits of £15.7m – an increase of more than £5m from its 2009 results. The Nottingham-based group, which released its first half results this morning, also trades as Evans Halshaw, Stratstone and Chatfields.

The company also revealed an increase in sales to £1.8bn, up from the company’s 2009 result of £1.5bn.

Trevor Finn, chief executive, described the results as “a significant improvement” in the group’s performance.

He said: “We continue to benefit from the business initiatives undertaken by management and the recovery in the market. The group has a core business well positioned to move forward.

“In particular, we continue to see growth opportunities from our after sales and used car operations, the most profitable parts of our business, and are reassured by their strong performance during the period. Assuming economic and market conditions remain stable, Pendragon is well placed to build on its strong start to 2010."

The motor giant’s operating profit rose to £39m, an increase of £5.6m from last year’s comparative period. Net debt was also reduced by £41.9m.

The company’s Evans Halshaw division sells mass-market Fords and Vauxhalls, and its Stratstone dealerships market premium models such as Maserati and Mercedes Benz.

It also operates motor car retail businesses in the USA.

In April this year, the group underwent changes at the top as Sir Nigel Rudd announced he was to step down as chairman– a position he had held since the company floated 20 years ago.

Speaking about his departure from Pendragon, Rudd said: “I have been considering my retirement from the board for some time, but the financial turmoil and difficult trading conditions of the last two years had deemed it inappropriate to leave the company.”