Vertu Motors is still on track for record revenues and profits, according to the car dealer group’s pre-close trading statement.
The 132-site motor retailer is due to announce its half-year results on October 12, and said trading has been robust with profitability ahead of last year, and its board expects a record full-year trading.
However the board expects that the decline in private new car registrations reported by the SMMT since April will be a continuing trend.
“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,” said Vertu Motors.
It said 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, while weaker exchange rate levels for sterling create uncertainty around future manufacturer strategies towards new car pricing.
Vertu said the result of the Referendum to leave the European Union has not impacted consumer confidence so far as adversely as some were initially predicting and the group has not experienced any significant change in consumer behaviour.
As editor, Tim is responsible for the media content, planning and production of AM's multiple channels (AM print and digital magazines, website, social media and contributing to our events planning). He interviews and writes about as many franchised dealer groups and UK divisions of motor manufacturers as possible, to explore the issues facing UK motor retail and understand what solutions dealers and suppliers are using to overcome these.
Jonathan - 02/09/2016 16:20
Good headlines. Let's now see how investors view this performance having watched the company spend so much of their money on acquisitions. I want to see profitability growing at a much greater pace than revenue from now.