REG - Vertu Motors PLC - Trading Update

Vertu MotorsAnnouncement

09/12/2021 07:00

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RNS Number : 0548V  Vertu Motors PLC  09 December 2021

9 December 2021

Vertu Motors plc ("Vertu" or the "Group")

Trading Update

Further upgrade of expected trading performance for FY22

The Group is providing an update on recent trading activity and a further
upgrade to the full year outlook.

Group profitability in October and November 2021 continued to be delivered in
excess of its business plan and also prior year levels. Shortfalls in the
supply of both new and used vehicles in the UK have continued due to the
ongoing dislocation in supply chains impacting global vehicle production.
Nevertheless, new vehicle supply to the Group in October and November was
better than envisaged and was sold at enhanced margins. Customer demand has
remained positive, with strong future order banks in all new vehicle channels
being evident. Used vehicle supply constraints continued to underpin vehicle
values, which have now plateaued and are starting to follow more normalised
seasonal trends. This, together with the application of robust pricing
disciplines in the Group, led to above normal margins being retained in used
cars.

The Group has made progress in its response to UK wide labour shortages as
indicated in the Group's interim results announcement. Amendments to reward
packages have now been rolled out across the Group. A reduction in the number
of live colleague vacancies is now evident though they remain above historic
levels.

The Board remains cautious on the future outlook with the potential of further
disruption from Covid-19 to our resource levels, consumer confidence and
global supply chains. Considering the robust trading performance delivered for
the year to date, the Board now anticipates that the Group's adjusted profit
before tax for the year ending 28 February 2022 will be no less than £70m
(previously not less than £65.0m).

This announcement contains inside information for the purposes of Article 7 of
the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law
by virtue of the European Union (Withdrawal) Act 2018 ("MAR"), and is
disclosed in accordance with the Company's obligations under Article 17 of
MAR.

For further information please contact:

 

 Vertu Motors plc        Tel: 0191 491 2121

Robert Forrester, CEO

Karen Anderson, CFO
 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 154 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 150 franchised sales outlets and 4
non-franchised sales operations from 118 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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