(Alliance News) - Vertu Motors PLC on Wednesday said that its trading in the six months to August 31 has been above prior-year levels, and as a result it now expects full-year results to be in-line with current market expectations.
The automotive retailer did not specify the current market expectations but noted that its acquisition of car dealership Helston Garages Group Ltd in December of last year has aided its performance.
Vertu said it has delivered like-for-like volume growth in its New Retail & Motability channel as supply constraints continued to ease, and in fleet and commercial vehicles amid strong demand and improved supply.
However, Vertu noted like-for-like volume decline for used vehicles as rising interest rates meant that the company was unable to run its 0% finance offers on used vehicles as it had done in the prior year.
"This change in approach, along with a continued lack of supply of used vehicles has driven the reduction in the number of like-for-like used vehicles sold," Vertu explained.
More positively, Vertu said it has seen strong demand for its high margin vehicle repair and service operations, which has in turn driven revenue growth in both service and parts.
Looking forward, Vertu said it is optimistic for the future despite the market outlook remaining "unclear" due to the impact of inflationary pressures and higher interest rates for consumers.
"The board remains optimistic for the future, we anticipate that full year results will be in line with current market expectations, and we are excited about the opportunities our enlarged portfolio will create for Vertu Motors," said Chief Executive Robert Forrester.
Shares in Vertu Motors were down 1.6% at 68.17 pence on Wednesday morning in London.
By Heather Rydings, Alliance News senior economics reporter
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Vertu (VTU)