Last checked at 1 Sep 2016 07:00
1 September 2016
Vertu Motors plc ("Vertu Motors" or "Group")
Pre-Close Trading Update
Robust half year trading; full year results expected to be in line with market expectations
Vertu Motors, the automotive retailer with a network of 132 sales and aftersales outlets across the UK, is pleased to provide an update on trading before going into a closed period.
In line with the Group's AGM statement made on 20 July 2016, trading has been robust with profitability ahead of last year. The Board expects that the Group's full year results will be in line with market expectations with record revenues and profits.
Aftersales and used cars, from which the Group derives the majority of its profitability, have continued to grow demonstrating the resilience of the business model. SMMT data has shown UK private new retail vehicle registrations softening since April 2016 compared to the strong prior year comparative period and the Board expects this trend to continue. September order take levels on new vehicles reflect continued growth in the fleet and commercial sector and a continuation of the softening in the private retail new car channel.
The macro-economic environment of historically record low interest rates and record high levels of employment in the UK provide a favourable economic backdrop for the sector. Weaker exchange rate levels for Sterling create uncertainty around future Manufacturer strategies towards new car pricing.
The result of the Referendum to leave the European Union has, to date, not impacted consumer confidence as adversely as some were initially predicting and the Group has not experienced any significant change in consumer behaviour. The Board continues to pursue its strategic objective of creating a balanced, scaled automotive retail group comprising both volume and premium outlets.
In the last 12 months, the Group has acquired four volume and 12 premium outlets. The Board is pleased with the performance of the recently acquired dealerships and with the integration of these businesses into the Group.
The Group's Half Year results will be announced on 12 October 2016.
This announcement contains inside information.
Ends
For further information please contact:
Vertu Motors plc |
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Robert Forrester, CEO | Tel: 0191 491 2111 | |
Michael Sherwin, FD | Tel: 0191 491 2114 | |
Liberum |
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Peter Tracey | Tel: 020 3100 2000 | |
Richard Crawley | ||
Jamie Richards | ||
Zeus Capital Limited | ||
Adam Pollock | Tel: 020 7533 7727 | |
Camarco | ||
Billy Clegg | Tel: 020 3757 4983 | |
Georgia Mann |
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Tom Huddart |
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Notes to Editors
Vertu, the UK automotive retailer with a proven growth strategy, is the fifth largest automotive retailer in the UK with a network of 132 sales outlets across the UK. Its dealerships operate predominantly under the Bristol Street Motors, Vertu, Farnell, South Hereford Garages and Macklin Motors brand names.
Vertu was established in November 2006 with the strategy to consolidate the UK automotive retail sector. It is intended that the Group will continue to acquire automotive retail operations to grow a scaled dealership group. The Group's acquisition strategy is supplemented by a focused organic growth strategy to drive operational efficiencies through its national dealership network. The Group currently operates 129 franchised sales outlets and 3 non-franchised sales operations from 109 locations across the UK.
Vertu Group websites - www.vertumotors.com / www.vertucareers.com
Vertu brand websites - www.bristolstreet.co.uk / www.vertuhonda.com / www.macklinmotors.co.uk / www.farnelllandrover.com / www.farnelljaguar.com / www.vertuvolkswagen.com / www.southherefordgarages.co.uk / www.vertumercedes-benz.com