Pendragon looks to Cadillac for lift

BRITAIN'S biggest motor dealer, Pendragon, could stem slowing car sales by persuading punters to buy into that most iconic of American car brands, the Cadillac.

Pendragon is already showcasing Cadillacs out of its Stratstone showroom on Park Lane and will start delivering CTS models, costing about £30,000 and likened to a BMW 5 series, from April.

It is sole distributor for the General Motors produced cars, and though volume expectations are initially low it is aiming to sell them in Manchester and Birmingham too. A forecast slowdown in car sales this year saw Pendragon chief executive Trevor Finn strike a cautious note after reporting a strong performance in 2004.

After last year's takeover of rival CD Bramall, pre-tax profits are up 47% to £65m on sales more than 75% higher at £3.2bn.

The increase in earnings sees Pendragon's dividends soar 34% to 10.2p. The company borrowed £293m to pull off the Bramall deal but strong cashflows have have already seen net debts fall to £244m on the way to a target of £200m by the end of the year.

The shares today motored ahead by 7%, up 21¼p to 312¾p.