4:07 pm, March 1, 2011
AHEAD of its preliminary results, Vertu Motors plc has announced a trading and portfolio development update.
Trading performance of the UK’s eight largest motor retailer in the first six months of the financial year has ‘remained strong’ to January 31, 2011. Sales and pre‐exceptional operating profits are ahead of both budget and prior year too.
Vertu has continued to make good progress with its growth strategy, adding a further eight sales outlets in the second half of the year – taking the number from 67 to 75. A new partnership with Nissan, a relocation of a Citroen dealership, and the opening of a third Hyundai dealership are part of this, along with the acquisition of Patrick (Holdings) Limited who held a number of dealerships in the North.
In contrast, six sites are up for sale though with a book value of £6.6m.
Like‐for‐like profit growth in service, parts and bodyshop operations, was achieved by the group. Initiatives such as a a focus on servicing older vehicles, enhanced CRM strategies to aid retention, sales of service plans and robust vehicle health check processes, are the quoted reasons.
Overall gross margins in aftersales rose to 42.2 per cent in the five months to January, 31, 2011 compared to 41.8 per cent in the corresponding period last year, while the numbers of used cars sold by the group rose by 9.6 per cent on a like‐for‐like basis.
However private new car sales volumes declined in the five months to January, 31, 2011 by 6.1 per cent on a like‐for‐like basis. The absence of the scrappage scheme has been blamed by the the group, but expected ‘as scrappage sales were disproportionately concentrated in franchises in which the group did not have strong representation,’ says Vertu.
The company expects to announce its preliminary results on 11 May 2011.
