StockMarketWire.com - Auto dealer Pendragon warned its annual profits would fall 17% after the introduction of new global engine testing regulations caused vehicle supply disruptions.

Underlying pre-tax profit for calendar 2018 was expected to fall to £50.0m, the company said.

In 2017, Pendragon posted an underlying pre-tax profit of £60.4m.

The new Worldwide Harmonised Light Vehicle Test Procedure had created disruption in new car sales and uncertainty over new vehicle supply, the company said.

UK new car market data for the month of September showed a decline of 20% in new registrations and a similar trend has continued in October.

'This has caused significant new vehicle supply disruption, which gives us cause for concern over the coming months for new vehicle sales and profitability,' Pendragon said.

'This will clearly have an effect on the group.'



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