Vertu Motors reports strong revenue growth
Dealer group Vertu Motors has reported that group revenues rose 3.3% on a like-for-like basis in the five months to July, while service revenues were up 8.4%.
The strong performance has been driven by a five per cent rise in used car sales, with gross margins increasing to 7.2%.
However, the group reported a 5.8% fall in the sale of new cars.
Sales of Motability vehicles rose by 26.5% in the period and fleet cars jumped by 9.4%. New commercial vehicle volumes, however, fell by 15.6%.
Vertu Motors CEO Robert Forrester said: “I am pleased with the group’s performance against a fast-shifting market backdrop. Our high margin, resilient aftersales business continues to thrive aided by higher technician numbers and strong execution of the group’s vehicle health check process.
“The retail new car market remains weaker as the government’s regulation to transition to battery electric vehicles causes market volatility and negative impacts.
“The current dislocation in the market presents opportunities for Vertu Motors to capitalise on, assessed using strict investment return metrics, with our strong balance sheet providing financial flexibility, an excellent portfolio of strong brands, robust and scalable systems, and a strong and experienced leadership team with motivated colleagues.”
Vertu Motors, which operates 192 dealerships across the UK under the Vertu, Bristol Street Motors and Macklin brands, will publish its six-month results of 16 October.
