7th May 2014 09:55
LONDON (Alliance News) - UK-based automotive retailer Vertu Motors PLC Wednesday reported an increase in profit and revenue for the full year, as its expanded its business and developed scaled-up operations with both Land Rover and Volkswagen UK.
The company posted pretax profit of GBP15.8 million for the period ended February 28, up from GBP4.4 million a year earlier, while revenue rose 33% to GBP1.68 billion from GBP1.26 billion
Vertu saw growth across also its business segments, with the new car retail and motability arm leading the way, with revenue rising to GBP534.4 million from GBP384.6 million a year earlier. It said new retail car volumes sold, excluding motability scheme sales, rose by 20% in the year on a like-for-like basis. Motability provides modified vehicles for disabled people.
The new fleet and commercial division posted revenue of GBP420.4 million during the year, up from GBP316.0 million in 2013, while used car revenue rose to GBP582.6 million from GBP431.9 million a year earlier.
During the period, the company said it increased its outlets to 108 compared with 96 in 2013. It also acquired Farnell Land Rover, a business comprising three dealerships representing the premium Land Rover franchise. In July the group acquired its first two Volkswagen dealerships, followed in November by three more to create a significant Volkswagen market area in the East Midlands.
Post the year-end the company acquired Hillendale Group Ltd - which operates a Land Rover dealership in Nelson, near Burnley, Lancashire and a Jaguar dealership in Bolton, Lancashire - in a deal worth GBP8.2 million. Vertu announced the deal on Tuesday.
"The acquisitions of these dealerships represent a broadening of the franchise composition of the group rather than a change of direction," the company said.
Looking ahead the firm said it has a strong pipeline of acquisition opportunities across a number of manufacturer partners, and it considers there is a "considerable potential for future acquisition growth which may include adding new franchises to the group's portfolio."
Financially, the company said it had net cash of GBP31.4 million, compared to a debt of GBP6.2 million a year earlier, following its GBP50 million placing in June 2013.
The board increased the final dividend to 0.5 pence per share, from 0.45 pence, making a total dividend for the year of 0.8 pence per share compared with 0.7 pence a year earlier.
Vertu was quoted at flat at 61.00 pence Wednesday.
By Anthony Tshibangu; [email protected]; @AnthonyAllNews
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