Vertu Motors plc (LON:VTU), the UK automotive retailer with a network of 159 sales and aftersales outlets, has announced the following update with regards to the five-month period to 31 January 2022 ahead of its preliminary results for the year ended 28 February 2022 to be announced on 11 May 2022.
Robert Forrester, Chief Executive of Vertu Motors said:
“I am pleased to report that the Board now expects the trading result for the year ended 28 February 2022, at an adjusted1 profit before tax level, to be not less than £75m. This further upgrade would not have been delivered without a significant team effort and I would like to thank every single one of my colleagues for their hard work and dedication.
The trading results have been aided by sector tailwinds and limited vehicle supply leading to augmented margins. In addition, recent acquisitions have contributed at a higher level than initially envisaged due in part to a swift and successful integration process.”
· Board expects the Group’s trading performance for the year ended 28 February 2022 to be not less than £75m (previously £70m) at the adjusted1 profit before tax level (28 February 2021: £24.6m)
· 29 sales outlets added to the portfolio since 1 December 2020
· New share back programme of £3m announced
· Delivered significant growth in like-for-like vehicle sales margins and gross profit generation in all channels compared to the previous two financial years
· Core Group aftersales revenue growth delivered in the Period, compared to FY20, with stability of overall margins
· £1.3m reduction in year-on-year net finance costs in the Period due to reduced new vehicle inventory funding costs
· Significant expansion of relationship with Toyota being executed
· Colleague reward review implemented to aid retention and recruitment
1 Adjusted to remove share-based payments charge and amortisation of intangible assets