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PENDRAGON has pinned the blame on its under-performing UK Motor Division for a 41.4% fall in underlying pre-tax profits for the first half this year.

In its half year report to June 30 the group said its underlying profit before tax for the period fell by £20.1 to £28.4m although it added that the results were in line with expectation.

Underlying revenues were £2.48bn, down 0.2% on the same period last year, when strong used car sales countered a fall in new car sales.

Used car gross profit in this year is down 14.3% with overall operating margin slipping 0.7% to 1.7%.

Chief executive, Trevor Finn, said Pendragon was still gaining momentum despite the declines as it moves towards fully online used car retailing.

Last year he announced plans for the group to base its future growth around a new strategy which would include a doubling of its profit from used cars, a re-appraisal of its UK car franchises and a focus on the operations of its Pinewood DMS software division.

Pendragon’s investment in used retail points also continued with the opening of full-scale Car Stores in Norwich, Ipswich and Shrewsbury Car Store in the period taking its total of used vehicle sites to 28 with a further three in the pipeline this year.

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