Coronavirus: Doncaster car dealers at risk as owner slumps to huge £16m loss

A string of car dealerships in Doncaster are at risk because coronavirus is putting people off buying vehicles –leading to a £16m loss for its owner.
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Pendragon – which owns the Evans Halshaw and Stratstone dealer brands – slumped to an annual loss of £16.4million in the last year as it struggled to offload 'excess' used car stock.

And the firm has predicted a bleak future, with fears the coronavirus pandemic will put people off from visiting a car showroom to buy a new car.

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The new car market is also facing significant disruption and around two thirds of car plants manufacturing new motors in Britain have shut up shop as the coronavirus outbreak rages on.

Evans Halshaw dealers in Doncaster are at risk because of coronavirus.Evans Halshaw dealers in Doncaster are at risk because of coronavirus.
Evans Halshaw dealers in Doncaster are at risk because of coronavirus.

In its latest annual results, Pendragon said it was putting its spending plans on ice in a bid to bid to stave off the expected fallout from the outbreak.

The group said: 'As the virus spreads across the UK, then this will likely influence the willingness of customers to visit our dealerships, which could affect our financial performance.'

Pendragon swung to an underlying pre-tax loss of £16.4million in 2019, against profits of £47.8million the previous year.

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The group also saw its share price fall by 33 per cent – its lowest level for 11 years.

Last year, Pendragon cut around 300 jobs as part of plans to shut a raft of Car Store showrooms.

The group hired former interim boss Bill Berman as its chief executive in February, weeks after issuing a warning over its profits.

Berman said: 'At the moment, we are closely monitoring the impact of Covid-19 on the economy as the situation continues to develop.'

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The car dealership chain said it was deferring spending on capital and marketing and is developing new work schedules as more staff are forced to work from home.

The Pendrgaon group has a number of Evans Halshaw dealerships in Doncaster – selling Nissan, Renault, Peugeot and Citroen vehicles as well as BMW dealer Stratstone.

The majority are located on Wheatley Hall Road.