Increased revenues and profits reported at Vertu Motors' AGM

12:24 pm, July 23, 2015

VERTU Motors has reported continued growth in like-for-like revenues and gross profits in the four-month period to the end of June.

At today’s company AGM, held at the company’s offices in Gateshead for the first time, chairman Peter Jones said the increased income had come both from vehicle sales and higher-margin aftersales activities.

With overheads remaining under control, the group’s profitability was strong and ahead of last year. The board expects that the group’s trading performance for the year ending February 29, 2016 will be in line with current market expectations.

Since the group last issued an update in May, the following developments have taken place:

On June 5, the group acquired the entire share capital of Blacks Autos Limited, which operates a Skoda dealership in Darlington. This is the Group’s first Skoda dealership, operating in leasehold premises next to Vertu’s Darlington Nissan business. The total consideration amounted to £1.5m, including £750,000 of goodwill. The accounts of Blacks Autos Limited for the year ended December 31, 2014 showed revenues of £9.8m and profit before taxation of £372,000.

Great to see so many investors attending our AGM this morning. pic.twitter.com/AtX0ixlfyD

— Robert Forrester (@vertumotors) July 23, 2015

On July 17, the group disposed of its Dunfermline Peugeot dealership, selling the assets to Eastern Western Motor Group Limited. In the year ended February 28, 2015, this dealership had revenues of £6m and made an operating loss of £200,000. The disposal will result in a release of working capital of £200,000.
On July 20, the group exchanged contracts for the sale of a vacant property in Crewe for £1.1m which equates to the book value of the property.

Upon approval of the proposed final dividend of 0.7p per share in respect of the year ended February 28, 2015 at today’s AGM, this dividend will be paid on July 28 to shareholders who were on the register at June 26, 2015.

Formed in late 2006, Vertu Motor Group represents 19 of the world’s major car franchises in over 120 dealerships across the UK.