* Consumer demand "weakened" in run-up to December vote
* Shares down 4.5% after trading update
* Company plans to issue FY results on March 18
(Adds shares, analyst comment, estimates, industry data)
By Yadarisa Shabong
Jan 29 (Reuters) - Auto dealership Pendragon Plc
said its expectations for a full-year loss had not been tempered
by a better second half after demand for cars suffered in the
run-up to the December elections, hurting the performance of its
largest unit.
Shares were down 4.5% at 11 pence in morning trade.
The company's full-year performance expectations have not
changed since it issued a profit warning in September, saying
its annual underlying pretax loss would be at the bottom end of
expectations.
Pendragon, which operates the Evans Halshaw, Stratstone,
Quickco and Car Store brands, said its largest division, the
franchised UK motor business, had been hurt by "a challenging
consumer environment" in the final quarter.
Industry data showed the number of new cars sold in Britain
last year fell to its lowest since 2013 as consumers held back
from purchases amid increased restrictions on diesel vehicles
and ongoing economic uncertainty ahead of Brexit.
Liberum estimates Pendragon's pretax loss at between 12
million pounds ($15.77 million) and 18.6 million pounds.
The brokerage said the company remained its least preferred
stock in the sector, given its "need for material business
change in a tough trading environment".
Pendragon, which has scrapped its dividend and seen the
departure of two chief executives in the last year, also faces
industry-wide problems including weak sales, stricter emissions
regulations and a shift towards electric or hybrid cars.
Its peers Lookers and Inchcape have also
reeled under pressure from the weakness in the auto industry
coupled with rising labour costs for skilled technicians and a
squeeze on margins.
In September, Pendragon said it had been pushed into a
half-year loss in the first six months of the year after making
deep price cuts to offload used car inventory.
However, on Wednesday it painted a brighter picture for 2020
as an in-line second-half performance at its other divisions put
it on "a much stronger footing" entering into the year.
The company has been closing underperforming Car Store
locations, improving management of used car inventory and
controlling costs.
($1 = 0.7608 pounds)
(Reporting by Yadarisa Shabong in Bengaluru; Editing by Shounak
Dasgupta and Jan Harvey)