Dealership Vertu Motors 'in gear for growth'

A car dealership has pledged to continue driving forward with expansion plans after navigating the bumps of a “fast-shifting market”.

Vertu Motors says it is “actively pursuing value accretive growth opportunities”.

The Gateshead-headquartered national operator unveiled the blueprint in a half-year financial update today (Wednesday, October 16) that showed higher costs had knocked adjusted pre-tax profit.

However, the business, which has forecourts across the UK, says it is well placed to accelerate its progress, with its electric vehicle portfolio – aided by new partnerships with Chinese brands BYD and Leap Motors – providing a platform for growth.

Robert Forrester, chief executive, said: “The retail new car market declined as the Government’s regulation to transition to battery electric vehicles introduced market volatility and negative effects in terms of affordability.

“We took considerable market share in the new retail market, and in the battery electric vehicle market in particular.

“Our strong balance sheet, excellent portfolio of brands and strong and experienced leadership team puts us in a great position to deliver our goals.”

He added those ambitions will be achieved under the Vertu banner, revealing its Bristol Street Motors and Macklin Motors brands will be replaced by its parent’s monicker by the end of April next year.

According to the company’s trading update, adjusted pre-tax profit stood at £23.5 million in the six months to August 31, down on the £31.5 million recorded in the same period 12 months ago.

Revenue at the business – which recently opened a Ducati dealership in Sunderland and a Peugeot base in Carlisle – increased slightly to £2.49 billion from £2.42 billion.

Robert added: “The mid-term outlook should be enhanced by the combination of reduced interest rates and our strong operational capability.

“The Government’s imposed zero emission vehicle mandate, which increases battery electric vehicle content targets with potential penal fines for manufacturers, has the potential to create volume and pricing volatility in the months ahead.

“The board is therefore cautious on the outlook for new vehicle profitability.

“However, the group is very well positioned to take advantage of the increasing opportunities in the UK sector.

“The pipeline of growth opportunities is strong, and will allow further expansion of the group’s scale.”

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