Vertu Motors “Record set of results with increased revenues, gross margins and profits” Robert Forrester CEO

Commenting on the results, Robert Forrester, Chief Executive of Vertu Motors plc LON:VTU, said: “In the first six months of trading, our proven growth strategy has delivered a record set of results with increased revenues, gross margins and profits. We have continued to successfully grow the business, through both organic growth and the acquisition and integration of premium franchises, as we seek to build a balanced portfolio.  Consistent delivery of an outstanding customer experience continues to be a strong driver of the growth of dealership performances across the Group.  This is demonstrated by the growing number of customers retained into the Group’s aftersales businesses.

“The outlook for the remainder of the year remains positive, underpinned by low interest rates and record high levels of employment in the UK economy.  The Group’s trading performance in the key September plate change month was strong.  The Board anticipates that the Group’s full year results will be in line with market expectations.”

Vertu Motors plc, the automotive retailer with a network of 129 sales and aftersales outlets across the UK, announces its interim results for the six months ended 31 August 2016.

Financial Highlights

·     Revenues increased by 17.7% to £1,454.6m (2015 H1 : £1,236.1m)

·     Record profit before tax up 14.0% to £18.7m (2015 H1 : £16.4m)

·     Adjusted1  profit before tax up 14.7% to £19.5m (2015 H1: £17.0m)

·     Period end net cash of £12.9m (2015 H1 : £32.1m)

·     Cash generated from operations of £26.4m (2015 H1 : £37.6m)

·     Earnings per share of 3.87p (2015 H1 : 3.82p)

·     Raised £35m in March 2016 to finance further acquisitions, with the majority of funds deployed

·     Interim dividend up 11.1% to 0.50p per share (2015 H1 : 0.45p per share) to be paid in January 2017

Operational Highlights

·     Record Group trading performance driven by improvement in recently acquired businesses, a strong used car performance and growth in higher margin service area

·     Growth strategy progressed with greater premium mix, including additions of Mercedes-Benz and Toyota franchises to Group

·     Group gross profit margins increased from 10.6% to 11.1%

·     Like-for-like service revenues up 6.6%: long-term growth trend continues

·     Group service gross profit margins strengthened from 76.9% to 77.9%

·     Like-for-like used vehicle volumes increased 8.5%: the 10th consecutive half year period of growth

·     Like-for-like used car margins strengthened from 10.0% to 10.7%

·     Total car and van volumes sold up 10.7%

·     Softening of new private retail market: Group like-for-like new car retail volumes down 4.2%

·     Strong performance in new commercial van sales with strengthening fleet and commercial margins

Outlook Highlights

·     Robust September trading performance ahead of last year on a like-for-like basis

·     Like-for-like new car retail volumes in line with SMMT data: broadly flat year on year

·     Recent acquisitions contributing to profit growth

6 months ended 31 August 2016

Growth Rates

Total

Like-for-Like

SMMT UK Registrations

Group Revenues

17.7%

4.7%

Service Revenues

26.6%

6.6%

Volumes :

Used retail vehicles

17.5%

8.5%

New retail vehicles

8.3%

(4.2%)

(0.8%)

Motability vehicles

1.3%

(3.0%)

(0.9%)

Fleet new cars

(4.5%)

(10.6%)

6.1%

Commercial new vehicles

13.4%

11.6%

3.9%

Click to view all articles for the EPIC:
Or click to view the full company profile:
    Facebook
    Twitter
    LinkedIn
    Vertu Motors Plc

    More articles like this

    Vertu Motors Plc

    Vertu Motors share buyback programme update

    Vertu Motors plc (LON: VTU) has announced that on 07 April 2022, it purchased 201,999 ordinary shares of 10p each in the Company on the London Stock Exchange, pursuant to the share buyback programme that was announced on 2nd March 2022 as

    Vertu Motors Plc

    Vertu Motors acquires two Toyota dealerships located in the East Midlands

    HIGHLIGHTS ·    Acquisition of two established, profitable Toyota dealerships located in the East Midlands, building the Group’s market share with this leading manufacturer. ·    The businesses will be branded Vertu and supported by the increasingly successful website, vertumotors.com

    Vertu Motors Plc

    Vertu Motors delivers record trading results

    Vertu Motors plc (LON:VTU), the automotive retailer with a network of 154 sales and aftersales outlets across the UK and a sector leading online presence, has announced its interim results for the six months ended 31

    Vertu Motors Plc

    Vertu Motors: Capital allocation specialists

    Vertu Motors plc (LON:VTU) has delivered another earnings upgrade driven by strong ongoing used car margins, in what is effectively an early delivery of the H1 pre-close update. Dividend payments will resume, and a share buyback

    Vertu Motors Plc

    Vertu Motors to present investor presentation

    Vertu Motors plc (LON:VTU), the UK automotive retailer with a network of 154 sales outlets, has announced that its management will host an online investor presentation and Q&A session on Tuesday, 17 August 2021 at 4.30pm.

    Vertu Motors Plc

    Vertu Motors: Another upgrade

    Vertu Motors plc (LON:VTU) has released an unscheduled trading update, delivering another earnings upgrade to 2022E, this time in excess of 30%. This is driven by the strength of the used car market, although we believe

    Vertu Motors Plc

    Vertu Motors experiencing strong gross margin retention

    Vertu Motors plc (LON:VTU) has announced that, as a consequence of the continuing strong trading performance, the Group is providing an update on current trading and an upgrade to the full year outlook.  Exceptional UK used