Vertu Motors sees strong start to year, backs annual outlook
Vertu Motors PLC on Wednesday said it expects annual results to be in line with market expectations, after a ‘encouraging’ start to its new financial year.
The Gateshead, England-based automotive retailer said adjusted pretax profit for the three months to May 31 was ahead of the prior year. New car retail volumes grew 7.0% on a like-for-like basis, outperforming the wider UK retail market, which rose 5.6%.
Vertu noted continued weakness in Motability sales, with like-for-like volumes down 23%, compared to a national decline of around 19%, according to the company. Fleet and commercial vehicle volumes rose 3.0%, while used vehicle volumes fell 3.8%, reflecting tighter supply and weaker consumer demand. Margins on used sales improved to 7.5% from 7.3%.
Aftersales performance remained strong, with service revenues up 4.1% on a like-for-like basis and improved gross profits across service and parts.
‘The group has traded well in a challenging macro-economic environment,’ said Chief Executive Officer Robert Forrester. ‘New retail volumes are up materially, and our high margin aftersales business continues its outperformance.’
Vertu said it remains cautious on the consumer outlook, citing pressure from the UK government’s zero-emission vehicle mandate.
Vertu shares were up 1.3% at 63.02 pence in London on Wednesday morning.
Copyright 2025 Alliance News Ltd. All Rights Reserved.