REG - Vertu Motors PLC - AGM Trading Update

Vertu MotorsAnnouncement

22/06/2022 07:00

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RNS Number : 6983P  Vertu Motors PLC  22 June 2022

22 June 2022

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

AGM Trading Update

The Group provided a detailed update on trading in March and April in its year
end results announcement released on 11 May 2022.

Constrained supply of new vehicles in the UK has continued, due to dislocation
in global supply chains and its impact on vehicle production. Consequently,
margins in both the new retail and fleet channels have remained strong.

The Group has also seen supply constraints continue in used cars.  This has
had two effects.  Firstly, combined with the comparative period reflecting
post lockdown pent-up demand, it has resulted in the Group seeing an expected
significant decline in like-for-like used car volumes in May compared to the
previous year. Secondly, the Group has been able to maintain strong retention
of gross profit on used cars, with per unit profit in May at above prior year
levels, as used car prices stabilised.

The Group's high-margin aftersales departments benefited from additional
working days in May 2022, which drove revenues above prior levels.  The Group
continues to make progress in its parts departments and accident repair
centres.

The market outlook remains unclear due to uncertainty of consumer demand and
vehicle supply although new vehicle supply is anticipated to improve gradually
in the months ahead. The Group has had a strong start to the financial year
but it is premature at this stage to indicate any changes to market
expectations of the full year trading profits.

Management remains focused on the delivery of operational excellence around
cost, conversion and customer experience.  In addition, the Group continues
to evaluate and execute acquisition opportunities as it seeks to deliver its
core strategic objective of growth.

 

For further information please contact:

 Vertu Motors plc
 Robert Forrester, CEO  Tel: 0191 491 2111
 Karen Anderson, CFO    Tel: 0191 491 2112
 Zeus Capital Limited   Tel: 020 3829 5000
 Jamie Peel
 Andrew Jones
 Dominic King
 Camarco                Tel: 020 3757 4983
 Billy Clegg
 Tom Huddart

 

Notes to Editors

Vertu Motors is the fifth largest automotive retailer in the UK with a network
of 160 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 156 franchised sales outlets and 4 non-franchised
sales operations from 121 locations across the UK.

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

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

Vertu brand websites - www.vertumotors.com (http://www.vertumotors.com) /
www.bristolstreet.co.uk (http://www.bristolstreet.co.uk) /
www.macklinmotors.co.uk (http://www.macklinmotors.co.uk) /
www.vertumotorcycles.com (http://www.vertumotorcycles.com)

 

 

 

 

 

 

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