25 October 2016 – Q3 trading update

The largest motor retailer in the UK has issued a trading update covering the three months to 30 September with like for like sales up 5.7% compared to the same period in 2015.  So far, the group has not experienced any downturn from the EU referendum result and underlying pre-tax profit for the period was up by 6.3%.  The group continues to benefit from increasing market share in used cars whilst its largest profit contributor, the aftersales business, saw gross profit increase by over 3% in the period.  The group is seeing increased on-line traffic and with group finances remaining strong it is set for another good year.  We maintain our share price target of at least 40p and the shares are a BUY.