4 Dec 2017 07:00
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PENDRAGON PLC STRATEGY UPDATE (ISSUED 4 December 2017)
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Pendragon PLC, the largest and leading automotive online retailer in the UK, announces an update to the strategy information contained in our Interim Management Statement issued on 23 October 2017.
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We have been through a process to conclude our next steps on the strategic objectives outlined in that October statement. Our update today demonstrates our actions on those strategic objectives.
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UK New car business
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• Review of capital allocation of Premium Brands completed.
• Premium brand franchise locations will be reduced over a three year period.
• £100m capital released through a mixture of disposal proceeds and investment not deployed over the next three years.
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US Motor Group
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• Given the strong performance of this division, we have concluded it is economically right to sell the business at this time to realise its value.
• Industry leading sell-side adviser appointed.
• Early indications from adviser to anticipate proceeds in excess of £100m before tax.
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UK Used car business
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• Our used car business, under pinned by our industry leading software platform, remains our focus for growth.
• Continued investment to complete our national network achieving our objective to double used car revenue by 2021.
• Senior executive to be recruited to lead all aspects of our UK used car operations, executive search company mandated.
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Resumption of share buyback
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• Share buyback programme resumed.
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Trevor Finn, Chief Executive:
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"Following our strategic review, we have focussed on reshaping the business to accelerate transformation and ensure capital allocation is optimised across the group.
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The actions I am announcing today are a further step towards achieving our strategic objectives.
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I believe this strategy will provide more reliable and sustainable returns."
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Further information
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The Company is presenting today at an institutional investor conference hosted by one of our brokers, Berenberg.
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We have published the presentation materials for this investor conference in the Investor Relations Section of our website (http://www.pendragonplc.com/investors/).
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 Enquiries |  |  |  |
 Trevor Finn | Chief Executive | Pendragon PLC | 01623 725114 |
 Tim Holden | Finance Director | Pendragon PLC | 01623 725114 |
 Gordon Simpson | Partner | Finsbury | 0207 2513801 |
 Philip Walters | Principal | Finsbury | 0207 2513801 |
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