Vertu Motors set to report solid year's performance

Gateshead's Vertu Motors' trading update suggests preliminary results will be ahead of market expectations

Robert Forrester, Chief Executive of Vertu Motors
Robert Forrester, Chief Executive of Vertu Motors

Gateshead's Vertu Motors is on track to report trading performance ahead of market expectations for the year ended February 28.

The fast-growing automotive retailer, which has a network of 106 sales and aftersales outlets across the UK, said in a pre-close trading update ahead of preliminary results for the period that it had seen like-for-like volume and revenue growth in the five months to the end of January.

Like-for-like private new retail volumes grew by 21.5%, ahead of UK market growth of 14.8%, while like-for-like new fleet and commercial vehicle volumes grew by 23.2%.

Like-for-like used vehicle volumes, meanwhile, grew by 11.1%, while aftersales revenues increased by 5% with growth in all channels.

The group had also successfully integrated the Albert Farnell Land Rover business it acquired in June 2013, even going to win Land Rover Dealer Group of the Year 2013.

It likewise had a strong pipeline of further acquisition opportunities in both premium and volume segments

The trading update said: “March is the most important month for the profitability of the UK automotive sector as a consequence of the registration plate change and its impact on both new vehicle demand and the seasonality of servicing.

“The board is pleased to report that the like-for-like private new car order-take for March is currently running ahead of last year’s levels.

“Whilst there is clearly significant work to do during the month to deliver a strong March performance, this order-take level gives the board significant confidence.

“The board believes that, given the current strong performance of the Group and favourable market trends, the results for the year ended 28 February 2014 will be ahead of current market expectations.”

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