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.
An award-winning journalist and editor, with two decades of experience covering the motor retail industry, and accredited by the Institute of Leadership and Management (ILM) plus the National Council for the Training of Journalist (NCTJ)
As editor of AM since 2016, Tim is responsible for its media content, planning and production across AM's multiple channels, including the website, digital reports, webinars, social media and the editorial content of AM's events, Automotive Management Live and the AM Awards. His focus is on interviewing senior leaders of franchised dealer groups and motor manufacturer national sales companies to examine latest developments in UK motor retail.
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.