Trading Update

RNS Number : 2443J

Vertu Motors PLC

20 August 2021

 

20 August 2021

Vertu Motors plc

("Vertu Motors", "Group" or the "Company")

Trading update

Ahead of the announcement of its results for the six-month period ending 31 August 2021, the Group is providing an update on current trading and a further upgrade to the full year outlook. 

The Group continues to experience strong used vehicle gross margin retention, driven by the exceptional UK used car market conditions.  Consequently, the Group expects that it will deliver an adjusted profit before tax of no less than £50m in the six months to 31 August 2021.

The Group's like-for-like new vehicle order take for the key month of September is currently running in excess of prior year levels, however, there is a risk that well documented new vehicle supply shortages will result in vehicle deliveries being delayed into future periods.  As a consequence of reduced new vehicle supply, used vehicle supply may also be restricted in the coming months.

Uncertainty also remains around the possible impact of COVID-19 from potential future restrictions and colleague absence.  The current UK wide labour shortages, high vacancy levels and upward pressure on employment costs remain a risk for the business.

The Board remains cautiously optimistic and is upgrading the estimate for profit before tax for the current financial year to be in the range of £50m to £55m (previously £40m to £45m).  As a result of the strong performance seen in the financial year to date, the Board intends to re-establish the payment of dividends to shareholders upon finalisation of the interim results.  The Board remains very confident in the prospects for the Group, which is strategically well placed to capitalise on the changes and opportunities in the UK motor retail sector. 

This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 ("MAR"), and is disclosed in accordance with the Company's obligations under Article 17 of MAR.

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For further information please contact:

Vertu Motors plc	Tel: [phone]
Robert Forrester, CEO
Karen Anderson, CFO
Zeus Capital Limited	Tel: [phone]
Jamie Peel Andrew Jones Dominic King
Camarco	Tel: [phone]
Billy Clegg Tom Huddart

Notes to Editors

Vertu Motors is the fifth largest automotive retailer in the UK with a network of 155 sales outlets across the UK. Its dealerships operate predominantly under the Bristol Street Motors, Vertu and Macklin Motors brand names.

Vertu Motors was established in November 2006 with the strategy to consolidate the UK motor retail sector.  It is intended that the Group will continue to acquire motor 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 151 franchised sales outlets and 4 non-franchised sales operations from 116 locations across the UK.

Vertu's Mission Statement is to "deliver an outstanding customer motoring experience through honesty and trust".

Vertu Motors Group websites - www.vertucareers.com

Vertu brand websites - www.vertumotors.com / www.bristolstreet.co.uk / www.macklinmotors.co.uk / www.vertumotorcycles.com

 

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