- Pendragon said it would reduce franchise locations at its UK Premium brand new cars business over a three-year period and sell its US business.

At the UK business, the company said £100m of capital would be released through a mixture of disposal proceeds and investment not deployed over the next three years.

Early indications from advisers anticipate proceeds from the US business in excess of £100m before tax, if it is successfully sold, the company said.

"Following our strategic review, we have focused on reshaping the business to accelerate transformation and ensure capital allocation is optimised across the group," chief executive Trevor Finn said.

"The actions I am announcing today are a further step towards achieving our strategic objectives."

"I believe this strategy will provide more reliable and sustainable returns."

At 9:52am: [LON:PDG] Pendragon PLC share price was +0.75p at 26p

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