Vertu Motors PLC Pre-Close Trading Update (6278I)
01 September 2016 - 4:00PM
UK Regulatory
TIDMVTU
RNS Number : 6278I
Vertu Motors PLC
01 September 2016
1 September 2016
Vertu Motors plc ("Vertu Motors" or "Group")
Pre-Close Trading Update
Robust half year trading; full year results expected to be in
line with market expectations
Vertu Motors, the automotive retailer with a network of 132
sales and aftersales outlets across the UK, is pleased to provide
an update on trading before going into a closed period.
In line with the Group's AGM statement made on 20 July 2016,
trading has been robust with profitability ahead of last year. The
Board expects that the Group's full year results will be in line
with market expectations with record revenues and profits.
Aftersales and used cars, from which the Group derives the
majority of its profitability, have continued to grow demonstrating
the resilience of the business model. SMMT data has shown UK
private new retail vehicle registrations softening since April 2016
compared to the strong prior year comparative period and the Board
expects this trend to continue. September order take levels on new
vehicles reflect continued growth in the fleet and commercial
sector and a continuation of the softening in the private retail
new car channel.
The macro-economic environment of historically record low
interest rates and record high levels of employment in the UK
provide a favourable economic backdrop for the sector. Weaker
exchange rate levels for Sterling create uncertainty around future
Manufacturer strategies towards new car pricing.
The result of the Referendum to leave the European Union has, to
date, not impacted consumer confidence as adversely as some were
initially predicting and the Group has not experienced any
significant change in consumer behaviour. The Board continues to
pursue its strategic objective of creating a balanced, scaled
automotive retail group comprising both volume and premium
outlets.
In the last 12 months, the Group has acquired four volume and 12
premium outlets. The Board is pleased with the performance of the
recently acquired dealerships and with the integration of these
businesses into the Group.
The Group's Half Year results will be announced on 12 October
2016.
This announcement contains inside information.
Ends
For further information please contact:
Vertu Motors plc
Robert Forrester, CEO Tel: 0191 491
2111
Michael Sherwin, FD Tel: 0191 491
2114
Liberum
Peter Tracey Tel: 020 3100 2000
Richard Crawley
Jamie Richards
Zeus Capital Limited
Adam Pollock Tel: 020 7533 7727
Camarco
Billy Clegg Tel: 020 3757 4983
Georgia Mann
Tom Huddart
Notes to Editors
Vertu, the UK automotive retailer with a proven growth strategy,
is the fifth largest automotive retailer in the UK with a network
of 132 sales outlets across the UK. Its dealerships operate
predominantly under the Bristol Street Motors, Vertu, Farnell,
South Hereford Garages and Macklin Motors brand names.
Vertu was established in November 2006 with the strategy to
consolidate the UK automotive retail sector. It is intended that
the Group will continue to acquire automotive 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 129 franchised sales outlets and 3
non-franchised sales operations from 109 locations across the
UK.
Vertu Group websites - www.vertumotors.com /
www.vertucareers.com
Vertu brand websites - www.bristolstreet.co.uk /
www.vertuhonda.com / www.macklinmotors.co.uk /
www.farnelllandrover.com / www.farnelljaguar.com /
www.vertuvolkswagen.com / www.southherefordgarages.co.uk /
www.vertumercedes-benz.com
This information is provided by RNS
The company news service from the London Stock Exchange
END
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