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Vertu Motors plc has issued its Pre-close Trading Update confirming the group’s year ended 28 February 2015 as “a record in volumes, revenue and profits”.

 

Vertu Motors operate 117 sales and aftersales outlets across the UK.  The group’s pre-close update confirms Group revenues, including acquisitions, grew by 17.8% in the 5 months to 28 February 2015.   Total vehicle sales volumes grew by 14.3% and like-for-like vehicle sales volumes grew by 7.7%.

With regard to like-for-like private new retail sales, the group records volumes increased by 0.5%, compared to the overall UK growth in private registrations of 5.4%.  Vertu point out that their figure for new retail sales does not include self registered vehicles (these are included in the used vehicle figures), whereas the SMMT supplied figure for private registrations of 5.4% does include all of the vehicles register pre-sale at dealerships to satisfy manufacturer targets.  The statement confirms a slightly increased like-for-like gross profit per unit in new retail vehicle sales for the period.

Vertu outperformed the market in fleet and commercial vehicle sales which  grew by 16.7% during the Period,  ahead of the UK growth of 9.6% in this sector.  This is a significant for Vertu as the Fleet and CV segment represented 24.6% of Group’s revenues in the Period.

In used vehicle sales Vertu highlight that margins were hit due to the prevalence of retailer self-registrations and an increase in the supply of ‘nearly new’ late plate offerings. While like-for- like sales of used vehicles grew by 6.4%., Vertu note that gross profit per unit declined slightly during the Period.  Finally in the area of aftersales, Vertu report revenues increased by 1.8%, with increased margins.

In respect of market outlooks Vertu view the current trading period as follows: “The UK new car market looks to be stabilising at a high level after a prolonged period of significant growth. The drivers of supply push from manufacturers, including continued weak demand in the Eurozone and the strength of Sterling, are continuing. The used vehicle market is likely to see an increase in the volume of cars entering the market, enabling the potential for increased sales levels, but with more normalised used car price movements, potentially weakening margins. Tight stock management and pricing disciplines are therefore essential in this environment”

Vertu Motors is the sixth largest automotive retailer in the UK with a network of 117 franchised sales outlets and 3 non-franchised sales operations from 93 locations across the UK.

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