Vertu Motors saw continued growth in like-for-like revenues and gross profits during the four month period to June 30, according to chairman Peter Jones.
At the group’s Annual General Meeting (AGM) taking place today, he spoke of the period being strong and ahead of last year, both from its vehicle sales and in the higher margin aftersales activities.
The Board expects that the group's trading performance for the year ending February 29 2016 will be in line with current market expectations.
Since the group last updated the market on May 15 2015, the group acquired the entire share capital of Blacks Autos Limited on June 5, which operates a Skoda dealership in Darlington. This is the group's first Skoda dealership, which operates in leasehold premises situated adjacent to the group's Darlington Nissan business. The deal amounted to £1.5million, including £750,000 of goodwill. The accounts of Blacks Autos Limited for the year ended December 31 2014 showed revenues of £9.8million and profit before taxation of £372,000.
On July 17, the group disposed of its Dunfermline Peugeot dealership, selling the assets to Eastern Western Motor Group Limited. In the year ended February 28, this dealership had revenues of £6million and made an operating loss of £0.2million.The disposal will result in a release of working capital of £0.2million.
On July 20, the group exchanged contracts for the sale of a vacant property in Crewe for £1.1million, which equates to the book value of the property.
Upon approval of the proposed final dividend of 0.7p per share (2014: 0.5p per share) in respect of the year ended February 28 at today's AGM, this dividend will be paid on July 28 to shareholders who were on the register June 26.
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