REG - Vertu Motors PLC - AGM Trading Update

Vertu MotorsAnnouncement

25/06/2024 07:00

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RNS Number : 6793T  Vertu Motors PLC  25 June 2024

25 June 2024

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

AGM Trading Update

Vertu Motors, a leading UK automotive retailer with a network of 189 sales and
aftersales outlets, is pleased to announce the following update with regards
to the three-month period to 31 May 2024 (the "Period").  The Board
anticipates that full year results for FY25 will be in line with current
market expectations.

Trading Update

·    New car retail and Motability like-for-like volume growth of 6.8%
gaining market share.

·    Like-for-like new vehicle margins were 7.4% (8.1% last year) with an
increased Motability mix at lower margins and increased discounting.

·    Fleet and commercial vehicle like-for-like volume growth of 6.4%,
with focus on profitable fleet sales channels. Gross margins stable.

·    Strong used vehicle like-for-like volumes grew 6.7%: used car prices
following more normalised seasonal trends.

·    Services revenues continue to show excellent growth with a 10.1%
like-for-like increase compared to prior year, in part benefiting from
investment in technician resource.

·    Improved gross profit was delivered in all aftersales channels on a
like-for-like basis. The Group continues to deliver new technologies to
operations developed in house which will improve revenue and retention per
customer and increase colleague productivity.

Outlook

The Board anticipates that full year results for FY25 will be in line with
current market expectations.

The Board has been encouraged by the trading results for the Period.  The
Zero Emission Mandate to force the uptake of zero emission vehicles sold in
the UK has the potential to create volatility in the new car market. This may
include reduced supply of new petrol and diesel cars in the coming periods and
would lead to a strengthening of petrol and diesel used car values.

The Group's high margin aftersales businesses have strong growth potential due
to additional resource levels and Group strategies around customer retention
and increased average invoice value per customer.

 Group Management remain focused on operational excellence and the delivery
of the Group's strategic objectives. A number of growth opportunities are
being evaluated against the Group's capital allocation metrics.  The
franchised retail market remains very fragmented with the Group representing
around 5% of the sector.

Robert Forrester, Chief Executive Officer of Vertu Motors, said:

"I am pleased to report that trading remains positive.  Used car pricing has
remained stable and we have gained market share in the new retail and
Motability car market and delivered strong like-for-like volume growth in used
vehicles.  The performance of our high margin aftersales business has
remained strong."

 

For further information please contact:

 

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

 Phil Clark, Investor relations                           PClark@vertumotors.com

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

 Camarco                                   Tel: +44 (0) 203 757 4983
 Billy Clegg
 Tom Huddart

 Notes to Editors
 Vertu Motors is the fourth largest automotive retailer in the UK with a
 network of 189 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 185 franchised sales outlets and 4
 non-franchised sales operations from 143 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.bristolstreet.co.uk (http://www.bristolstreet.co.uk) / www.vertuhonda.com
 (http://www.vertuhonda.com) / www.vertutoyota.com (http://www.vertutoyota.com)
 / www.macklinmotors.co.uk (http://www.macklinmotors.co.uk) /
 www.vertumotorcyles.com (http://www.vertumotorcyles.com)

 

 

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