8:02 am, August 27, 2026
Vertu Motors expects its full-year results to be ahead of market expectations after reporting strong trading across its business during the first five months of its financial year.
In a trading update, the Car Dealer Top 100 group said like-for-like group revenues increased 4.6% in the five months to July 31, with growth across new and used vehicles, fleet and aftersales.
New retail vehicle volumes, including agency sales, were up 8.7%, while used retail vehicle sales increased 4.4%.
Motability volumes rose 10.2%, while new fleet cars and commercial vehicles increased by 19.9%.
Vertu said it had significantly increased its share of the fleet market during the period, while aftersales revenue was also higher and contributed to year-on-year growth in group profits. Service revenues increased 3.4% on a like-for-like basis.
Marketing campaigns were attributed to the rise in new retail and used vehicle sales, particularly ‘Value Cars by Vertu’ – a strategy launched in April 2026 to boost sales of used cars.
The group said gross margins remained stable and operating expenses continued to be ‘well controlled’ following cost-saving actions taken before the start of the financial year.
Chief executive Robert Forrester said: ‘The group has delivered a strong trading performance in the five month period to July 31, 2026, with positive contributions from new and used vehicles, increased fleet market share, and continued momentum in our high-margin aftersales operations.’
He added that order-take levels ahead of September’s plate change gave the board confidence that the full-year result would beat market expectations.
Vertu expects net debt at the end of August to be between £74m and £77m, excluding IFRS 16 liabilities, compared with £78.3m at the end of the first half of the previous financial year.
Meanwhile, the update also revealed that Vertu has continued to expand its representation of Chinese car brands.
Its first Omoda and Jaecoo outlets opened in Burton on July 1, while the group has also opened its first Leapmotor outlets in Harrogate and Crewe.
Vertu is working to introduce a further Geely outlet in Teesside and has started representing Alpine in Nottingham.
Vertu now operates 18 sales outlets representing Chinese automotive brands, including BYD and MG.
Elsewhere, Renault and Dacia have also been introduced at an existing outlet in Mansfield.
The group has also been reshaping its existing network, closing its loss-making Mazda outlet in York at the end of July.
Its Sheffield Mazda operation has been moved alongside Nissan, which Vertu said would reduce the group’s operating cost base.
The portfolio changes mean anticipated capital expenditure for the full financial year will be £2m higher than previously announced.
The update also revealed that the board now expects FY27 adjusted profit before tax to be ahead of current market expectations.
Estimates put adjusted pre-tax profit at £25.5m, with estimates ranging from £24.5m to £26.1m.
Forrester also welcomed the government’s consultation on the UK’s Zero Emission Vehicle Mandate.
He said Vertu hoped it would lead to a more pragmatic transition to electrification that better reflected consumer demand and market conditions.
The group warned, however, that the outcome could still leave the industry facing what it considers unrealistically high targets for both cars and, particularly, vans.
The business’s interim results for the six months to August 31 are due to be announced on October 14, 2026.