8:23 am, October 14, 2026
Dealer group Vertu Motors has upgraded its full-year profit outlook after a strong start to 2026.
In a trading update, published on its website this morning, the retailer announced record revenues in the six months to August 31.
The Car Dealer Top 100 firm turned over an impressive £2.6bn in the first half of the year, up 3.4% on the £2.51bn recorded a year earlier.
It also reported a 19% increase in adjusted pre-tax profit to £23.8m, with the improved performance helped by tighter cost controls and lower finance charges.
Bosses also say that second half trading has begun well, with September trading ahead of expectations during the important plate change month.
The group now expects full-year results to come in ahead of current market forecasts, with adjusted pre-tax profit set to come in at £26.5m, within a range of £25.5m to £27.1m.
It comes after previously upped its forecasts back in August.
Commenting on the latest results, boss Robert Forrester said: ”The group delivered a strong first-half performance, with record revenues and adjusted profit before tax increasing by 19.0% to £23.8m.
‘Gross profit growth was delivered across every channel, while maintaining firm control of costs despite ongoing inflationary pressures. The group has now delivered three upgrades to current year profits since the start of the financial year.
‘The new car market is showing robust growth with retail sales rebalancing against fleet which aids retailer profits. A focus on execution is delivering tangible benefits.’
Elsewhere, the group generated £17.5m in free cash flow, up from just £0.4m a year earlier, helping to reduce net debt to £54.2m from £78.3m at the end of August 2025.
The board also increased its interim dividend by 11% to 1p per share, payable in January 2027.
Chinese brands drive expansion
Car Dealer reported earlier this week that Chinese car brands are driving virtually all growth in UK new car market, according to Autotrader.
Amidst that backdrop, Vertu has continued to invest in expanding its representation of Chinese manufacturers as it looks to reshape its portfolio.
The group had 18 outlets representing Chinese automotive brands at the end of August, compared with nine a year earlier. Two further outlets have since opened, taking the total to 20.
It plans to open another 11 outlets over the next nine months, potentially taking its Chinese brand representation to 31 sites by mid-2027.
The expansion includes deals with BYD, Geely, Chery, Omoda, Jaecoo and Leapmotor.
Vertu described the arrival of Chinese manufacturers was a ‘major structural change’ in the UK market, with competitive pricing, technology and finance offers helping to attract buyers.
The group also highlighted the success of its Value Cars by Vertu, which launched in April to target older, more affordable used vehicles.
Sales of used cars aged seven years and over increased by 34.7% during the period, accounting for almost 90% of the reported growth in used vehicle volumes.
These cars sold an average of 11.5 days faster than Vertu’s standard used vehicles. The initiative also delivered a gross margin of 15.1%, compared with 7.5% for standard used cars, while generating similar gross profit per vehicle despite a much lower average selling price.
Overall, like-for-like used retail volumes increased by 3.7%.
Forrester added: ‘Value Cars by Vertu growing older used car sales is broadening the group’s used vehicle proposition.
‘Investment in digital tools and operational discipline are improving productivity and customer conversion.
The group continues to reshape its portfolio to capture attractive growth opportunities, including automotive brands from China.
‘We now have 20 Chinese automotive outlets, with more on the way.’
Electric car sales
Over the years Forrester has been a vocal critic of the government’s EV strategy, particularly the ZEV mandate.
However, Vertu said its battery-electric new retail sales volumes increased by 125.6% during the half year, compared with market growth of 75.9%.
Across its wider new retail operation, like-for-like vehicle sales rose by 8.4%, against UK market growth of 13.1%.
Fleet car volumes were a particular area of strength, increasing by 30.5% on a like-for-like basis against market growth of 8.4%. However, like-for-like commercial vehicle sales fell by 3.7%, despite the overall market growing by 5.7%.
Elsewhere, the group has also announced plans to increase technician pay from November to support recruitment and retention, despite overall operating expenses rising by 2.1%.
Forrester said: ‘The group has a strong balance sheet and generated substantial amounts of cash; we have a resilient and diversified business model and clear strategic priorities.
The board will continue to invest selectively for growth, return capital to shareholders and focus on delivering sustainable long-term value.’