7:22 am, May 7, 2020
Vertu Motors has revealed that since the lockdown it has sold 825 cars to consumers and racked up 749 fleet orders.
In a trading update to the Stock Market this morning, Vertu said those orders remained undelivered but will be fulfilled when the government allows showrooms to restart.
The update also revealed the group’s plans for reopening with an appointments-based system likely.
The statement said: ‘Meticulous planning has been undertaken for the re-opening of dealerships in a safe and socially distanced way, with strict guidelines and the use of personal protection equipment where appropriate, once restrictions are lifted.
‘The group will train all colleagues in these matters prior to re-opening and will ensure that customers are well informed as to the protocols, including the implementation of timed appointments in sales and service and social distancing requirements.
‘Dealership sales showrooms will open when restrictions are lifted with a phased return of colleagues from furlough likely to be adopted to balance resource levels and opportunity.
‘The group continues to work closely with trade bodies, manufacturer partners and the government to ensure that the group’s approach will be in line with likely approved industry guidelines.’
The statement went on to explain Vertu, the fifth biggest dealer group in the UK, has a ‘very strong’ balance sheet with low levels of debt and assets with a book value of £186m.
Vertu said: ‘Adjusted net debt, excluding used vehicle stocking loans, was £2.8m at 29 February 2020. The group drew a further £10m of its revolving credit facility in March 2020.’
It also revealed it holds used stock worth £136.8m and has the ability to draw down on £45m of loans, which has risen by £10m. Vertu says it hasn’t used that facility yet as it holds £30m in cash.
The group also reported:
- 80 per cent of staff are on furlough scheme
- Directors have taken a 30 per cent pay cut for April and May
- Annual director bonuses have been waived
- Other senior managers took 20 per cent pay cut
The statement added: ‘Careful control of site closures has delivered other cost savings, including an approximate 60 per cent saving on dealership energy costs compared to the month prior to closure.
‘Manufacturer partners continue to be highly supportive in terms of reducing cost of franchises during this period.’
Aftersales highlights included:
- 98 of the Group’s 133 dealership aftersales operations were reopened in late March
- 18% of the Group’s technicians are actively at work in these locations
- overall labour sales are running at 20% of pre-lockdown levels
- April service labour revenues are expected to be around £1.7m
The statement said: ‘The group’s central contact centre has been operating very effectively from home and, in recent days, additional colleague resource has been added to enable service bookings to be diarised from June onwards.’
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