Vertu Motors' full year profits anticipated to be ahead of market expectations

Vertu Motors, which has a network of 160 sales and aftersales outlets across the UK and a sector major online presence, has announced its interim results for the six months ended August 31 2022.

Over the period, the company achieved an adjusted profit before tax of £28.2m on revenues of £2.0bn.

Robert Forrester, the chief executive, said: “The first half has seen a strong trading performance with vehicle margin strength offsetting market driven volume shortfalls.

"The group continues to benefit from its focus on operational excellence around cost, conversion and customer experience aided by continued digitalisation initiatives. Cashflow generation has been strong and the dividend for the first half has increased again.

“The business is strategically very well placed with significant firepower to expand its footprint of franchised dealerships across the UK.”

The group said it had delivered a strong performance in the “key month” of September despite ongoing supply constraints.

It revealed that new and used vehicle supply constraints continue to be offset by continued higher margins and aftersales demand remains robust. It revealed that “increased technician resource” is now in place to drive revenues.

However, Vertu said that cost pressures are evident, particularly with regards to energy costs.

It said an energy strategy is being developed and executed including approved capital investment. Government action regarding energy costs and National Insurance rates will benefit the group in the second half, Vertu said in a statement. It also revealed there was a strong acquisition pipeline in place.

In a statement, Andy Goss, the chairman, said: “ I am very proud to see how every colleague has contributed to the success of the group and I would like to thank them for this.

"The board continues to function well and undertook a review of the group’s strategy and execution against it during September. I believe that progress in this regard has been strong and the next twelve months should see this progress continue.

“The group’s excellent financial position, continued investment in its colleagues and systems and its established track record of execution gives me confidence that we will continue to deliver on our strategic objectives.

The statement from Mr Goss added: "The group has the scale and firepower to take advantage of the considerable sector changes working in partnership with the group’s manufacturer partners through accretive consolidation of this fragmented market.”