Shares in Pendragon, the UK’s largest auto retail group, have risen rapidly in the week after rumours of a pending stock market announcement swept the City. From a low point of 7.4p on January 19, the shares ended the week at 10.75p – a rise of over 40%.

The sudden confidence in Pendragon appears to have been triggered by an invitation to financial journalists to a press briefing this coming Tuesday. However, a spokesman for the group denied any significant announcement was imminent and suggested the rise in share value was due to “usual market movement”.

Auto Retail Agenda understand the press briefing on Tuesday is going to focus on the importance of used cars to the profitability of auto retail groups and chief executive, Trevor Finn, will use the opportunity to explain to non-motoring business writers Pendragon’s strength in this sector of the market.

Mr Finn would not be able to discuss financial results ahead of the formal year-end announcement, which is scheduled for February 22. However, he is expected to reaffirm profit guidance given in previous trading statements.

Pendragon remains a ‘buy’ recommendation across a consensus of market analysts with a target price of 14p, a further 32% gain on its Friday evening close.

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