7:52 am, March 5, 2026
Vertu Motors has revealed recent trading has been ‘strong’, despite the UK’s new car market remaining ‘challenging’ due to the government’s Zero Emission Vehicle (ZEV) mandate.
In a trading update issued to the London Stock Exchange this morning (Feb 5), the listed dealer group said that in the five months to January 31, 2026, group revenues rose 3.3% overall, or 2.2% on a like-for-like basis, while service revenues increased 4.8%.
Vertu, which operates 188 sales outlets across the UK, said the market for new vehicles remains ‘challenging’, with manufacturers and retailers continuing to grapple with the impact of EV sales targets set by the government.
Vertu said manufacturers spent more than £5bn subsidising EV sales in 2025, with discounts averaging around £11,000 per vehicle, a level the group described as ‘financially unsustainable’.
Despite the difficult backdrop for new cars, Vertu’s used vehicle business performed solidly, with like-for-like used retail volumes rising 2.8% during the period. Overall used car sales increased 3.6%, although margins were slightly lower.
Meanwhile, the group’s aftersales division delivered strong growth in both revenue and gross profit, supported by increased technician numbers and improved customer retention.
Vertu also reported strong growth in its fleet business, with fleet car volumes up 24% and 25.8% higher on a like-for-like basis, outperforming the wider UK market where fleet registrations grew 12.7%.
In contrast, the commercial vehicle sector remained weak. Vertu’s like-for-like van sales fell 9.9%, broadly reflecting a wider market decline of 8.5%.
The company also confirmed it is continuing to reduce costs and reshape its dealership portfolio to cope with industry pressures.
A £10m cost efficiency programme has been delivered ahead of schedule, although it resulted in £4m–£4.5m of exceptional restructuring costs during the year due to headcount reductions and the closure of a small number of dealerships.
Last month, Car Dealer reported Vertu had shut ‘financially unviable’ sites in the north of England.
Conversely, in recent months, the dealer group has expanded its partnerships with Chinese carmakers, opening a Geely site in the Glasgow area, and a pair of BYD dealerships in November 2025.
Vertu also reported it expects the financial impact from the JLR cyberattack to be less than the £5.5m it previously estimated.
Alongside the trading update, Vertu announced a new £12m share buyback programme, following the purchase of 18.8m shares for £11.3m under its previous scheme.
Looking ahead, Vertu plans to expand its focus on older used vehicles aged seven to 14 years, which it says is currently the strongest-performing segment of the used car market.
Chief executive Robert Forrester said the company was pleased with its performance despite the challenging market.
‘We are pleased with the team’s performance as we control the controllables against a challenging market backdrop in the new vehicle segment in large part due to the government’s ZEV mandate.
‘Used vehicle sales were robust despite consumer uncertainty impacting retail demand. Our resilient aftersales business continues to thrive aided by higher technician numbers. The work that has gone into cost control, property disposals and optimising stock levels has contributed to an excellent cash performance.
‘Despite the impact of the complex market dynamics on the short-term performance of the business, the sector presents opportunities for Vertu given our strong balance sheet, excellent manufacturer partnerships and reputation, robust and scalable systems, and a great team.’
Vertu said it expects adjusted profit before tax for FY26 to be in line with market expectations, with analysts forecasting £21.6m. Its preliminary results for the year ended February 28, 2026 will be announced on May 13, 2026.
