2 August 2016 – interim results
A solid set of figures has been released covering the first half, which is the first half of the calendar year. Underlying profit before tax rose from £40.3m to £44.2m. Underlying earnings per share increased from 2.1p to 2.3p and an interim dividend of 0.7p per share was declared following a 2015 final dividend of 0.7p per share. A share buyback programme of £20m has been started with £2.6m purchased and cancelled to date. The shares look very good value at the current level, as do others operating in the same industry such as Vertu Motors. Pendragon are a BUY and we feel that fair value is at least 40p.