Full-year revenues motor ahead at Vertu

15th May 2024 09:11

(Sharecast News) - Vertu Motors reported record revenues on Wednesday, despite difficult market conditions and falling used car prices.

The car dealership group, which has 188 sales and after-sales outlets, said revenues in the year to 29 February jumped 17.6% to £4.7bn, a record.

Pre-tax profits rose 6.5% to £34.6m.

The firm - which warned on profits last December, citing a "volatile" consumer environment - said used car margins had weakened in the second half, due to price corrections across the market. However, it added that values and margins had stabilised by the end of the year.

After-sales also performed well, Vertu said, with like-for-like revenues up 8.6%.

Robert Forrester, chief executive, said: "It was pleasing to see the group successfully navigating a difficult period of trading with declining used car values in the last few months of 2023.

"Used vehicle prices and margins have now stabilised and there have been strong cash generation from lower working capital reducing net debt below market expectations."

Looking to the current year, Vertu said there had been "strong" trading in the key months of March and April, giving it confidence for the full year.

As at 0915 BST, shares in the Aim-listed stock were trading 2% higher at 77.3p.