Vertu Motors PLC Trading Update (2443J)
August 20 2021 - 2:00AM
UK Regulatory
TIDMVTU
RNS Number : 2443J
Vertu Motors PLC
20 August 2021
20 August 2021
Vertu Motors plc
("Vertu Motors", "Group" or the "Company")
Trading update
Ahead of the announcement of its results for the six-month
period ending 31 August 2021, the Group is providing an update on
current trading and a further upgrade to the full year outlook.
The Group continues to experience strong used vehicle gross
margin retention, driven by the exceptional UK used car market
conditions. Consequently, the Group expects that it will deliver an
adjusted profit before tax of no less than GBP50m in the six months
to 31 August 2021.
The Group's like-for-like new vehicle order take for the key
month of September is currently running in excess of prior year
levels, however, there is a risk that well documented new vehicle
supply shortages will result in vehicle deliveries being delayed
into future periods. As a consequence of reduced new vehicle
supply, used vehicle supply may also be restricted in the coming
months.
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.
The Board remains cautiously optimistic and is upgrading the
estimate for profit before tax for the current financial year to be
in the range of GBP50m to GBP55m (previously GBP40m to GBP45m). As
a result of the strong performance seen in the financial year to
date, the Board intends to re-establish the payment of dividends to
shareholders upon finalisation of the interim results. 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.
- Ends -
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 155 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 151 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 /
www.vertumotorcycles.com
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END
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