UK car dealer Pendragon said it saw a significant improvement in performance during the second half of 2019 despite many challenges, including the closure of 22 underperforming Car Store locations.

Pendragon said in a statement: “The Group’s underlying profit before tax for FY19 is expected to be around the bottom end of current expectations. However the board remains confident that the improvement in performance during the second-half puts the business on a much stronger footing as we enter 2020.”

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The firm said the improvement was despite challenging market conditions and weakened consumer demand in the run up to the general election.

Pendragon said: “The period benefited from the actions taken by management to re-set performance, as outlined at the groups interim results, which included the closure of 22 underperforming Car Store locations, better management of vehicle inventory and a clear focus on operational cost management.”

In September, the company announced that 300 jobs would be cut along with 22 stories after posting a pre-tax loss of £32.2m, which was down 188% from £32m profit in 2018.

The faltering performance was due to a combination of issues, including the level of unsold used car stock, Pendragon said at the time.

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The company then released stock through a combination of lower retail pricing and clearance through trade auction channels. In July 2019 the chief executive of Pendragon Mark Herbert departed after only three months in the role.

However in October after completing the closure of Car Stores, Pendragon revealed an underlying profit before tax of £3m – a 57.9% increase against the same period last year.

The statement at the time said: “Whilst the improved performance during the period is encouraging, we continue to expect economic and market conditions to be challenging, with the ongoing uncertainty around Brexit impacting consumer confidence.  The full-year underlying loss before tax remains in line with the board’s expectations.”