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Gateshead automotive retailer Vertu announces record £18.7m pretax profits

Gateshead-based automotive retailer Vertu Motors plc has this morning revealed pretax profits of £18.7m, a record trading performance for the firm.

Disclosing financial results for the six months ended August 31 2016, the company saw the figure rise from £16.4m for the same period last year, a continued increase of £2.3m.

Similarly revenue rose from £1.24bn to £1.45bn, a record increase of 17.7%.

Vertu attributes the strong trading performance to improvement in recently acquired businesses, a strong used car performance and growth in its higher margin service area.

Moreover, its growth strategy progressed through the creation of a premium mix, including additions of Mercedes-Benz and Toyota franchisesto the overall business.

Vertu, which boasts a network of 129 sales and aftersales outlets across the UK, expects its recent acquisitions to further propel profit growth for the remainder of the year and beyond.

Commenting on the results, Robert Forrester, Chief Executive, said: “In the first six months of trading, our proven growth strategy has delivered a record set of results with increased revenues, gross margins and profits.

“We have continued to successfully grow the business, through both organic growth and the acquisition and integration of premium franchises, as we seek to build a balanced portfolio.

“Consistent delivery of an outstanding customer experience continues to be a strong driver of the growth of dealership performances across the group. This is demonstrated by the growing number of customers retained into the group’s aftersales businesses.”

Robert added: “The outlook for the remainder of the year remains positive, underpinned by low interest rates and record high levels of employment in the UK economy.

“The group’s trading performance in the key September plate change month was strong. The board anticipates that the group’s full year results will be in line with market expectations.”