8:56 am, October 16, 2013
VERTU Motors has announced record pre-tax profits of 68.6 per cent to £8.6m.
In the first six months ending August 31, 2013, Vertu Motors saw its profits before tax shoot up to nearly 69 per cent, while cash conversion increased by a staggering 285 per cent to £30.4m.
As a consequence of the market trends, the automotive retailer, which has a network of 99 sales and aftersales outlets across the UK, raised £50m from shareholders to finance the £31m acquisition of the Farnell Land Rover business and other investments.
In line with the latest figures of strong UK vehicle sales, the group has also continued to grow its like-for-like aftersales revenues, gross margins and profits by improving customer retention, workshop efficiencies and spend per customer visit.
Chief executive of Vertu Motors, Robert Forrester, said: ‘The board is delighted with the strong results announced today having pursued its successful buy and build strategy for over seven years.
‘With profit before tax up 69 per cent and operating cash generation up 285 per cent, we believe the results reflect a strong market, combined with our growing maturity as a business and are a testament to the continued hard work of all our colleagues.’
He added: ‘The group has made the most of the market opportunity with good performances in the core business and the turnaround of new dealerships progressing well. The acquisition of Farnell Land Rover in the period will benefit results going forward and market conditions remain favourable with September trading being strong.
‘As a consequence, the Board anticipates the full year results to be significantly ahead of market expectations.’
