Pendragon warned today that the introduction of Worldwide Harmonised Light Vehicle Test Procedure (WLTP) on 1 September would damage its performance for 2018.
Profits are set to decline about 17% to £50m compared to last time due to problems with supplies.
“UK New Car market data for the month of September showed a decline of 20% in new car registrations and a similar trend has continued in October demonstrating the impact of WLTP.
“This has caused significant new vehicle supply disruption which gives us cause for concern over the coming months for new vehicle sales and profitability. This will clearly have an effect on the group,” it said.
The company continues to invest heavily in its used car business and the creation of four industrial used car preparation and refurbishment centres.
“This accelerated investment is being made in spite of the short term dilutive effect and the significant costs incurred, latest data gives us encouragement for the future growth of this part of the business.
“As a result of the combination of these factors our underlying profit before tax for 2018 is expected to be £50m,” it added.
Pendragon will publish its Q3 interim management statement on 26 October 2018.
Click here for the Motor Trader interview with Trevor Finn in the October issue.