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Overall financial performance for the fourth quarter of FY22 was slightly ahead of the Board's expectations, with a strong underlying trading performance more than offsetting higher operating and interest cost pressures. Trading during the quarter was underpinned by strong volume growth in new cars, with the Group delivering like-for-like volume growth of 4.6%, and outperforming the retail new car market growth of 1.0%. Used car volumes also grew by 5.2% on a like-for-like basis in Q4, a notable improvement on the declines seen in the third quarter.
As a result of this performance, FY22 Group underlying profit before tax is expected to be approximately £57m (FY21: £83.0m), slightly ahead of market expectations1.
The Group continued to improve its financial position during FY22, with adjusted net debt of approximately £23m (FY22: £49.7m) as at 31 December 2022.
Until the MM’s decide to let it go, this share is ready to rip.
And the SP has dropped!
Someone has just bought £1m worth of shares?
Me too, but how far do you follow before taking any winnings? I think I am going for 22p unless it jumps through that.
Even with Hedin backing out of the deal, the share price is very much under value, I don't doubt a few will be selling to cut their losses now, but sub 18p is far too low.
Looks like crispin odey is looking to rinse the baby!
Well, I am in.
Who knows whats going on here, is it just more games.
First it was Hedin that put a stop on someone else's bid to buy PDG as it was below value at 28p , then they put in a bid of 29p assuming they would win because all the other large shareholders wanted to sell out.
Now after weeks of Due Diligence they pull out, even as one of the largest shareholders they already know what the books were like. will they come back with a 18p-20p offer?
Teddy please explain. Let me first put a few observations and thoughts forward.
1. Hedin pulled out when they almost certainly could have bought at 29p. What did they find? Someone mentioned pension fund issues. Too much of a burden?
2. Why is 18p any good if the company has not been paying dividends? What are you hoping for?
3. Hedin’s due diligence went on for weeks and weeks. They are losing out big time and yet chose to walk away.
4. Aren’t the pay packets and bonuses another reason the PDG is potentially doomed? All the talk of giving shareholders value looks just rhetoric?
Am I right in thinking you’re just hoping for a bit of a bounce back and don’t actually think the company is worth much more than 20p?
There will be a lot of eyes on the opening price tomorrow, looks interesting and anything sub 20p looks good value to me.
Wouldn't surprise me to see it back around 18, I've always thought that was a good entry point and I will be joining then if it gets there over the next few days. Good fun trading the bid speculations on these car dealers!
Bye bye, no doubt IMO they took one look at the final salary pension benefits of the Vardy/ CD Bramall defined benefit schemes and realised the huge financial commitment involved. I can almost hear the sighs of relief in Loxley house that Finn is not returning
Drop overdone just bought another £4k and the upcoming railstrikes and falling oil prices should give the sector a lift - we shall see.
Even with no bid, the current share value is under priced.
Was the bid just a ploy to put others off?
Back down to 22p today then...
Given the challenging market conditions and uncertain economic outlook, Hedin confirms that it does not intend to make an offer for Pendragon.
I will surprised if the sale price is higher than 29p, it would be nice though, Hedin have already put off other buyers by stating their holding is 35p minimum to sell, so that is the purchase price for any other bidder.
The new owner -Hedin will not issue shares to buy Pendragon they will pay cash. Any dividend paid by Pendragon and agreed by Hedin would reduce the price paid for the shares.
I am hopeful that Pendragon's board will have been able to negotiate an increase in the bid price - perhaps to 32p in order to discourage anyone else from making a bid.
Someone is hoovering up the shares by automatic bids, your right, why would anyone buy at the offer price, no profit there, unless there might be another bidder somewhere?
Why are some people saying PDG is now a "BUY" at 29p, which is what the s /price is almost at now!
plus, people are starting to buy PDG at 29p, why!!...
I mean, if the take-over bid is only around the 29p mark, why buy now at 29p?...
Or are we all expecting/hoping it will skyrocket with the new owners, who-ever that might be?
and does anyone think the new owners (if it happens) will actually start to pay shareholders our much overdue dividends? any thoughts?
If Hedin or one of their concert party pay more than 29p then the offer will have to be at or higher than the price paid.
Yes , I read that, I wonder if that's why all the automatic buys at 29p are going through, or is it Hedin buying up the stock?
From Sunday Telegraph:
The board of one of Britain’s biggest car dealers is poised to back a takeover by a Swedish automotive tycoon in a £400m take-private deal.
City sources said that members of Pendragon’s board have indicated to Anders Hedin that they will recommend shareholders approve his 29p-a-share approach.
The board’s recommendation could be announced as early as Monday ahead of a “put up or shut up” deadline.
With executives this weekend putting the final touches to the deal, sources cautioned that a short extension to the deadline may be required before the directors’ approval is confirmed. The takeover would then need to be backed by Pendragon's shareholders.
Separate City sources said that the deal with Hedin Group could yet be gatecrashed. There is speculation that Constellation Automotive, the group behind Webuyanycar and Cinch, could launch a rival bid.
Constellation Automotive is led by chairman Avril Palmer-Baunack, who previously led the board of Stobart. The Hampshire-based company has been at the forefront of the consolidation within the UK’s fragmented car dealership market.
It acquired listed car dealer Marshall a year ago and has taken a 20pc stake in Lookers, another of the UK's listed dealerships.
Although a swoop on Pendragon, which operates under the Evans Halshaw, Stratstone and CarStore brands, would attract the interest of competition regulators, such a deal would only leave Constellation with around 20pc of the UK car dealership market, sources added.
Pendragon and Lookers held talks over a potential merger in May 2020. Discussions ended without an agreement.
A rival bid would likely have to be in the region of 35p-a-share, the price at which Hedin has previously indicated it would be willing to sell its current 27.5pc stake in Pendragon.
Hedin is thought to believe Pendragon can be run significantly more efficiently. It is eyeing savings by cutting out unnecessary costs. It is likely to bring in its own management team to run the business, City sources said.
Should a counter-bid not emerge, it remains to be seen whether Hedin will bring back Trevor Finn, who transformed Pendragon into one of Britain’s biggest car dealers during his 30-year stint with the company.
Mr Finn quit Pendragon in 2018 amid reports of a boardroom row. His successor, Mark Herbert lasted just three months before stepping down. Insiders claimed there had been a “difference of priorities”.
Pendragon, Hedin Group, and Constellation Automotive declined to comment.