Pendragon has confirmed that it is looking at the sale of its
software business, Pinewood, in an attempt to shore up its
finances.
In an interim management statement to the London Stock Exchange,
Pendragon said that it is anticipating a full-year loss of £30m,
compared with a full-year pre-tax profit of £35m in 2007.
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The troubled car retail company is said to have appointed the
advisory firm Arden Partners to oversee a strategic review of the
Pinewood business, which makes Pinnacle, a back-office dealer
management system that is licensed to dealers, distributors and
fleet operators.
The business could be worth up to £60m, according to analysts,
and Pendragon is considering whether to sell or seek a stock market
listing for the company, which could provide it with cash to reduce
its debt.
Last year, Pinewood made profits of £8m on sales of £21m.
Pendragon has already taken steps to improve its financial
situation, which it estimates will save £40m on an annualised
basis. By the end of the year it will have closed 75 dealerships
and cut its workforce by 2,500 – some 20 per cent of its total
staff.
Jason T Hesse
