Robert Forrester, chief executive of Vertu Motors PLC, with rising star James Collingwood

Member Article

Vertu Motors beat national car sales trend

Gateshead-based automotive retailers Vertu have 21.5% growth in new retail volumes in the five months to the end of January.

The dealers have network of 106 sales and aftersales outlets across the UK that have outperformed the UK national market which grew by 14.8% in the same period.

Strong demand in the UK new car market and a weak market in the Eurozone, driving supply, has spurred Vertu’s success.

The firm made a number of acquisitions throughout the year, growing its outlet network from 95 to 106. However, it was discussing the sale of some properties no longer used in dealership activities and expected a £1.2 million write-down as a result.

The firm also noted it was entering into a deal with Haymarket Publishing Group to develop a digital media offering for customers, but did not provide any more detail.

A statement to shareholders read: “The outlook for the UK new car market remains positive, driven both by a positive consumer outlook and a supply push from manufacturers as they continue to direct higher volumes of product to the UK as a consequence of continued low level demand from the Eurozone.

“There is a risk that these trends may lead to pressure on new vehicle margins in the event of supply exceeding demand. However, a higher volume market normally benefits the Group in the short term through sales and in the medium term through higher aftersales volumes.”

This was posted in Bdaily's Members' News section by Tom Keighley .

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