(Sharecast News) - Car dealership Vertu Motors said on Monday that core gross profits from fleet and commercial vehicle sales had grown in the five months ended 31 January, with the group now expecting to report full-year adjusted pre-tax profits in line with market expectations.
Vertu Motors delivered 28% growth in core gross profits from fleet and commercial vehicle sales to £5.2m and said that full-year full-year adjusted profit before tax was expected to be "broadly in line with current consensus".
The AIM-listed group said it has successfully increased used vehicle stock-turn and significantly reduced inventory levels to adjust to changing market dynamics, adding that UK used vehicle values had stabilised in recent weeks following post-October wholesale pricing correction.
However, it added that the UK's new vehicle retail market was down year-on-year, with manufacturers discounting and enhancing offers to stimulate demand.
Chief executive Robert Forrester said: "I am pleased with the team's performance against a fast-changing market backdrop with used vehicle prices now stabilised at lower levels and consumer uncertainty impacting retail demand for new cars. Our resilient aftersales business continues to thrive aided by higher technician numbers. The work that has gone into cost control 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 current market presents opportunities for Vertu with our strong balance sheet providing; financial flexibility, portfolio of strong brands, robust and scalable systems, and a great team."
As of 1000 GMT, Vertu shares were up 1.56% at 68.55p.
Reporting by Iain Gilbert at Sharecast.com
Vertu (VTU)