Pendragon signs £530m loan deal

CAR dealer Pendragon yesterday unveiled a new three-year financing package after talks were sealed in time to beat a deadline for annual results.

The owner of the Stratstone and Evans Halshaw brands said the agreement with lenders on a new 530 million loan facility gave it "necessary headroom" ahead of what it expects will be another grim year for the battered sector.

The conclusion of the discussions meant the firm was able to meet yesterday's City deadline for the filing of results for 2008. As previously indicated, the company racked up losses of 200m, or 29.6m excluding one-off items.

The group said it was facing the most challenging market conditions since the early nineties, although it added it expected a stabilisation in the used-car market this year and some recovery in the new-car market next year.

Pendragon said it had responded to the crisis by closing or selling 53 dealerships, as well as making more than 3,000 post redundant in a 60m cost reduction programme.