13th Oct 2021 14:37
Vertu Motors PLC - Gateshead, England-based car dealership - Pretax profit surges to GBP51.1 million in six months to August 31, a record for the firm, versus GBP4.0 million year before. Revenue jumps to GBP1.92 billion from GBP1.12 billion. Operating expenses, excluding government support, rises to GBP173.3 million from GBP146.4 million.
Says vehicle sales volumes ahead of market trends in all areas and on a like-for-like basis compared to six months ended August 31, 2019.
Reestablishes interim dividend, pays out 0.65 pence.
Chief Executive Robert Forrester says: "The record profitability delivered in the period has undoubtedly been aided by very favourable used vehicle market conditions, however, this is a remarkable performance outperforming market trends."
Forrester says prices for used cars have rocketed by around 20% over the past six months as demand jumps due to supply issues with new cars, caused by a global microchip shortage and freight troubles.
The firm has around 500 unfilled vacancies - a historically high level for the group - with a particular shortage of skilled technicians.
"We have again generated significant free cash flow and have a very strong balance sheet making the group very well-placed to benefit from the changes and significant opportunities which are ahead of it. The resumption of paying dividends to shareholders shows the board's optimism in our strategy and its execution," he adds.
Current stock price: 58.51 pence, up 7.2% on Wednesday
Year-to-date change: up 77%
By Paul McGowan; [email protected]
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