PDG.L Share News (PDG)

Car dealer Pendragon reported sharply lower profits in the six months to June 30 as recession-hit motorists held onto their old cars rather than splashing out on new ones.It posted a pre-tax profit of £11.4m, compared with £21.1m over the same period the previous year, as revenue slid to £1.59bn from £2.48bn.'The market conditions which caused a rapid decline in consumer demand for new and used cars last year have continued into the first half of 2009,' the firm said.However, cost-cutting measures helped bring about an improvement from the second half of 2008, when it reported a loss.Pendragon said new car sales had recently been lifted by the government's 'car scrappage' scheme, which gives motorists a subsidy of £2,000 towards new car purchases if they trade in their old one.It has also seen increased prices for used cars, with values climbing for the eighth month in succession in June.