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Breaking news: Gateshead’s Vertu Motors cruises to record first half performance

Gateshead-based car retailer Vertu Motors plc has announced a record pretax profit of £16.4m, up 28.1% on last year’s £12.8m.

Revealing its interim results for the six months ended 31 August 2015, the growing dealership group also reported a sharp rise in revenue which increased by 14.0% to £1,236.1m, up from £1,083.9m in the first half of 2014.

The company also highlighted strong cash generated from operations,£37.6m up from £15.9m, as well as earnings per share up 27.8%, rising to 3.82p from 2.99p, to indicate its continued growth.

Vertu revealed that its record trading performance was chiefly driven by improvement in recently acquired businesses, existing outlets and growth in higher margin service areas.

For example, its growth strategy progressed with 119 sales outlets in the group’s portfolio, creating a greater premium mix.

Moreover, total car and van volumes were up by 10%, Like-for-like used vehicle volumes increased 4.2% and the company witness a strong performance in fleet and commercial sales.

Robert Forrester, Chief Executive, said: “We are delighted with this record first half performance in terms of profitability and cash generation, which has given us the confidence to increase the interim dividend significantly.

“Recent acquisitions, growth in high margin aftersales activity, improvements in organic performance and the disposal of underperforming businesses and assets are all underpinning improved returns. We now expect to deliver results ahead of expectations for the full financial year.

“The Group has a strong balance sheet and net cash position, despite significant capital expenditure and acquisition investment in the period. This, together with the operational management strength in the Group, gives the Board great confidence to keep growing the business, organically and through acquisitions, in the period ahead as the ongoing consolidation of the sector continues.”

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