10:01 am, March 3, 2020
VERTU Motors saw like-for-like revenue grow by 5.4 per cent on a 9.4 per cent drop in new retail vehicle volumes in the five months to January 31, it announced today.
A trading update for the network, which boasts 133 sales and aftersales outlets, also reported a 2.3 per cent fall in used vehicle retail volumes. However, service revenue rose by 5.4 per cent, with aftersales in the core group delivering a £2.3m year-on-year uplift in gross profit.
On February 28 – the day before Vertu’s financial year ended – it added to its portfolio in Yorkshire with the £4m acquisition of the Kia Bradford and Honda Bradford business from the Vantage Motor Group, taking the number of outlets operated by the group in Yorkshire to 18.
Vertu chief executive Robert Forrester, pictured, said: ‘I am pleased to report that the board expects the trading performance for the group to be in line with its overall expectations.
‘This result has been achieved through the deployment of discipline, hard work and sector leading systems. Scale will become an increasingly important success factor as the sector evolves and the current pipeline of potential acquisition opportunities is strong, with our robust balance sheet only being deployed over rigorous capital allocation testing.’
The trading update points out that manufacturers are looking to reduce their supply push of parts to the retailer network, and with Vauxhall the latest planning to do so Vertu is forecasting that its financial results for 2020/21 will mean a £0.9m cut in ongoing profit.
Vertu will announce its preliminary results for the year ending February 29 on May 6.
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