REG - Vertu Motors PLC - AGM Statement

Vertu MotorsAnnouncement

Wed 07:02

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RNS Number : 2625O  Vertu Motors PLC  25 June 2025

25 June 2025

Vertu Motors plc ("Vertu Motors", "Group", "Company")

AGM Trading Update - In-line

Vertu Motors, a leading UK automotive retailer with a network of 197 sales and
aftersales outlets, is pleased to announce the following update with regards
to the three-month period to 31 May 2025 (the "Period").  The Board
anticipates that full year results for FY26 will be in line with current
market expectations.

Trading Update

·     New car retail like-for-like volume growth of 7.0%, with the Group
gaining market share against the UK retail market which was up 5.6%.

·     The Group has continued to see weaker Motability sales volumes,
with like-for-like volumes down 23.2% in the Period, reflecting shifts in
market share away from traditionally dominant Manufacturers the Group
represents. This compares to a UK decline of 18.5%, where prior year sales
levels benefitted from large renewal volumes following disrupted change cycles
post-covid.

·     Fleet and commercial vehicle like-for-like sales volume growth of
3.0%, with focus on profitable fleet sales channels. Gross margins are
stable.  The UK commercial van market continues to see year-on-year volume
declines.

·     Used vehicle like-for-like volumes fell 3.8% in the Period,
reflecting tight supply in the used vehicle market and subdued consumer
demand. Margins increased to 7.5% from 7.3% in the Period and consequently
gross profits from the sale of used vehicles increased on prior year levels.

·     High margin service revenues continue to show growth with a 4.1%
like-for-like increase in the Period compared to prior year, as the Group
benefits from initiatives to enhance revenues and the vehicle parc ages.

·     Improved gross profit was delivered in the service and parts
channels on a like-for-like basis, therefore resulting in improved profits
year-on-year.

·     Adjusted profit before tax in the Period remains ahead of prior
year levels.

 

Outlook

The Board is encouraged by the Group's start to FY26, particularly the growth
of the new retail market in March.

The Board remains cautious in respect of the consumer outlook and continued
pressure in the new car market from the Government's Zero Emission Mandate
promoting electric vehicle adoption.

The full year result is expected to be in line with current market
expectations.

The share buyback programme of £12m capacity, announced in February 2025, has
continued throughout the Period with £4.5m of the programme utilised to date
in the purchase of 7.8m shares for cancellation, leaving £7.5m to deploy.
Since the Group started its share buyback programme in FY18, 18.5% of the
Group's issued share capital has been repurchased.

The Group is well positioned with stable management and a very strong balance
sheet with low gearing to take advantage of opportunities as they arise.

 

Robert Forrester, Chief Executive Officer, said:

"Since the beginning of the financial year, a period which includes the
important trading month of March, the Group has traded well in a challenging
macro-economic environment.  New retail volumes are up materially with the
Group benefiting from market share gains, and our high margin aftersales
business continues its out-performance.  This encouraging start to the year
is balanced by ongoing  headwinds of a challenging consumer and business
environment and the Government's ZEV mandate promoting accelerated electric
car adoption."

 

 Vertu Motors plc                                  Tel: +44 (0) 191 491 2121
 Robert Forrester, CEO

 Karen Anderson, CFO

 Phil Clark, Investor Relations

 Stifel (Nominated Adviser and Joint Broker)       Tel: +44 (0) 207 710 7688
 Matthew Blawat

 Nick Harland

 Shore Capital (Joint Broker)                      Tel: +44 (0) 20 7408 4090
 Mark Percy / Sophie Collins (Corporate Advisory)

 Isobel Jones (Corporate Broking)

 Camarco                                           Tel: +44 (0) 203 757 4980
 Billy Clegg

 Tom Huddart

 

Notes to Editors

Vertu Motors is the fourth largest automotive retailer in the UK with a
network of 197 sales outlets across the UK.

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 195 franchised sales outlets and 2
non-franchised sales operations from 153 locations across the UK.

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

Vertu Motors Group websites - https://investors.vertumotors.com
(https://investors.vertumotors.com) / www.vertucareers.com
(http://www.vertucareers.com)

Vertu brand websites - www.vertumotors.com (http://www.vertumotors.com) /
www.vertuhonda.com (http://www.vertuhonda.com) / www.vertutoyota.com
(http://www.vertutoyota.com) / www.vertumotorcycles.com
(http://www.vertumotorcycles.com)

 

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