Vertu Motors PLC Trading Update (8105G)
29 Luglio 2021 - 8:00AM
UK Regulatory
TIDMVTU
RNS Number : 8105G
Vertu Motors PLC
29 July 2021
29 July 2021
Vertu Motors plc ("Vertu Motors" "Group" or "Company")
Trading Update
As a consequence of the continuing strong trading performance,
the Group is providing an update on current trading and an upgrade
to the full year outlook.
Exceptional UK used car market conditions have resulted in the
Group experiencing strong gross margin retention, which has had a
material positive impact on profitability and cash flow. Whilst
used vehicle supply remains tight, particularly in the premium
segment, the Group has been successful in maintaining inventory and
sales volumes at higher levels than previously anticipated. New
vehicle supply constraints, due to semi-conductor shortages, have
had no material impact on the Group's trading performance to the
end of June 2021. New vehicle volumes and margins have remained
strong. Service revenues and profits have, as expected,
strengthened in recent weeks as the impact of the timing of annual
service and MOT work mirrors the prior year's lockdown and
release.
The Board now anticipates that the Group's adjusted profit
before tax for the six-month period ending 31 August 2021 will be
no less than GBP40m.
Uncertainty remains around the remainder of the financial year.
New vehicle supply levels will be constrained in the coming months
potentially impacting profitability. As a consequence of reduced
new vehicle supply, used vehicle supply may also be restricted.
Uncertainty also remains around the possible impact of COVID-19
from potential future restrictions and colleague absence. The
current UK wide labour shortages, high vacancy levels and upward
pressure on employment costs remain a risk for the business.
At this stage, despite the exceptional performance during the
first half of the year, the Board retains a cautious outlook but
nevertheless now anticipates that the Group's adjusted profit
before tax for the current financial year ending 28 February 2022
will be in the range of GBP40m - GBP45m (previously GBP28m -
GBP32m). The Board remains very confident in the prospects for the
Group, which is strategically well placed to capitalise on the
changes and opportunities in the UK motor retail sector.
This announcement contains inside information for the purposes
of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it
forms part of UK domestic law by virtue of the European Union
(Withdrawal) Act 2018 ("MAR"), and is disclosed in accordance with
the Company's obligations under Article 17 of MAR.
For further information please contact:
Vertu Motors plc Tel: 0191 491 2121
Robert Forrester, CEO
Karen Anderson, CFO
Zeus Capital Limited Tel: 020 3829 5000
Jamie Peel
Andrew Jones
Dominic King
Camarco Tel: 020 3757 4983
Billy Clegg
Tom Huddart
Notes to Editors
Vertu Motors is the fifth largest automotive retailer in the UK
with a network of 154 sales outlets across the UK. Its dealerships
operate predominantly under the Bristol Street Motors, Vertu and
Macklin Motors brand names.
Vertu Motors was established in November 2006 with the strategy
to consolidate the UK motor retail sector. It is intended that the
Group will continue to acquire motor retail operations to grow a
scaled dealership group. The Group's acquisition strategy is
supplemented by a focused organic growth strategy to drive
operational efficiencies through its national dealership network.
The Group currently operates 150 franchised sales outlets and 4
non-franchised sales operations from 116 locations across the
UK.
Vertu's Mission Statement is to "deliver an outstanding customer
motoring experience through honesty and trust".
Vertu Motors Group websites - www.vertucareers.com
Vertu brand websites - www.vertumotors.com /
www.bristolstreet.co.uk / www.macklinmotors.co.uk
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END
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