1 September 2016 – pre-close trading update
The company has issued a positive trading update ahead of entering a close period as it is the half year end on 31 August. Trading at the group continues to be strong with profitability ahead of last year and the full year results to next February are expected to reveal record revenues and profits. Although data from the industry body the SMMT has shown that UK private new retail vehicle registrations have slowed since April compared to the strong performance in the previous year, the used car and aftersales business at the group has continued to grow. The group’s September order book reflects a continuation of the slowdown in the retail market although there is growth in the fleet and commercial sector. The impact of the EU referendum has not impacted consumer behaviour so far, whilst recently acquired dealerships are doing well. We believe the shares remain a BUY.