Vertu Motors scores highest ever annual revenue amid rising vehicle prices and recent takeovers
- Vertu Motors achieved revenue of £4bn for the 12 months ending February
- The Gateshead-based firm declared pre-tax profits surpassed expectations
Vertu Motors delivered record turnover last year on the back of soaring vehicle prices and acquisitions made in the past two years.
The car dealership business, which owns the Bristol Street Motors chain, achieved revenue of £4billion for the 12 months ending February, an increase of almost £400million on the previous year.
Trade benefited from continued supply chain constraints, resulting partly from a shortage of semiconductors, pushing up the price of new and used retail vehicles sold by the firm.
Record result: Vertu Motors achieved revenue of £4billion for the 12 months ending February, an increase of almost £400million on the previous year
Customers spent close to £20,000 on average for every second-hand motor they bought and £24,128 for a new car, a 12 per cent and 10 per cent rise, respectively, on the prior 12 months.
This helped offset flatlining unit sales, as the pent-up demand for cars following the ending of Covid-19 restrictions by the UK Government slowed down.
Vertu said its £183.2million of revenue growth was due to acquisitions completed since March 2021, which have included Yeovil-based Helston Garages, its biggest-ever takeover deal.
Buying the family-owned Helston helped expand the company’s reach across Southwest England from four dealerships to 32 and added Ferrari and Volvo to its portfolio.
Just before acquiring the group, Vertu became the largest UK seller of BMW motorcycles when it snapped up a pair of dealerships in Yorkshire from the Saltaire Motor Company.
The Gateshead-based firm credited the acquisitions for helping its trading profit in March and April improve on last year’s levels, despite significant inflationary pressures and interest rates.
Bosses now anticipate full-year trading will align with present market forecasts, buoyed by continued supply challenges keeping used vehicle prices and margins at elevated levels.
‘I am delighted to report that the trading result post-year end has been encouraging and gives confidence for the year ahead,’ said chief executive Robert Forrester.
He added: ‘The business is in a healthy financial and operational position to further develop and gain from the benefits of scale as sector consolidation continues.’
The business also declared adjusted pre-tax profits surpassed expectations even though they plunged by over half to £39.3million due primarily to the cost of takeovers and pushing up staff salaries in response to trouble filling vacancies and the bump in the National Minimum Wage.
Consequently, it has decided to recommend a 40 pence hike in its final dividend to 1.45p per share, alongside a £3million share buyback programme.
Vertu Motors shares were 3.1 per cent higher at 59.8p on Wednesday afternoon, meaning they have expanded by around 125 per cent over the past three years.
