StockMarketWire.com - Auto retailer Pendragon downgraded its annual profit guidance after new global vehicle testing standards disrupted supplies and hurt revenue.

The company said it now expected to post a full-year underlying pre-tax profit of around £50m, down from the £60.4m it posted last year.

Revenue in the third quarter slumped 6.4%, or by 7.2% on a like-for-like basis, as used car revenue fell 4.1% and new car revenue fell 9.7%.

On the bright side, gross profit in the used car business jumped 20%, though in the new car business it slipped 0.3%.

Aftersales revenue fell 3.5%, while aftersales gross profit fell 3.1%.

'Given the introduction of the Worldwide Harmonised Light Vehicle Test Procedure legislation in the new car business and our continued investment in our used car business in new start up locations and 'used car factories', this has had a short term dilutive effect on profitability,' Pendragon said.

'We are encouraged by the improving used performance across the group in quarter three of this year and this will be a key growth area for the business in 2019.'



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