14th May 2025 13:09
(Alliance News) - Vertu Motors PLC said profit declined in its recent financial year, amid challenging conditions from a weak new car retail market and pressures from the government's zero emission vehicle mandate.
The Gateshead, England-based automotive retailer said pretax profit fell 28% to GBP24.8 million in the 12 months to the end of February from GBP34.6 million the year before.
Revenue edged 1.7% higher to GBP4.76 billion from GBP4.69 billion in financial 2024, but profit fell as cost of sales kept pace, up 1.5% to GBP4.23 billion from GBP4.17 billion, and operating expenses increased 5.4% to GBP485.1 million from GBP460.0 million.
Adjusted pretax profit fell 16% to GBP29.3 million from GBP34.7 million, in line with market expectations.
Vertu said the results were hurt by weakness in the UK market and uncertainty from the zero emission vehicle mandate.
It said it outperformed the domestic new retail car market and gained market share, including in battery electric vehicle sales.
"With challenging market conditions during the Year which saw the lowest new retail car market for 25 years, we have focused on the things we can control and delivered increased new retail electric vehicle sales ahead of the market and strong performances in used cars and aftersales," said Chief Executive Officer Robert Forrester.
Vertu declared a final dividend of 1.15 pence per share, giving a full-year dividend of 2.05p, down 13% from 2.35p a year ago.
The company said it saw a significant increase in the UK net retail car market in March and April, as manufacturers rebalance their fleet and material mix.
It said it performed well in those months and generated "significantly more" new car profit in the period than the prior year.
Vertu noted "considerable economic uncertainty" in the UK from the ZEV mandate, the impact of the budget and the effect of US tariffs on auto imports.
"The group is well positioned with stable management and a very strong balance sheet...to take advantage of opportunities as they arise," Vertu said.
Shares in Vertu Motors were up 1.1% to 63.78 pence in London on Wednesday afternoon.
By Michael Hennessey, Alliance News reporter
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