25th Jun 2024 11:06
(Alliance News) - Vertu Motors PLC on Tuesday said it expects full-year results in line with expectations, after "positive" trading in the three months to end of May.
For the three months, the Gateshead, England-based car dealership chain reported new car retail and Motability like-for-like volume growth of 6.8%.
Motability is a scheme which offers affordable motoring for disabled people, their families, and carers.
Vertu said that "increased discounting" hurt margins. Like-for-like new vehicle margins were 7.4%, falling from 8.1% 12 months prior.
It noted an "increased Motability mix at lower margins and increased discounting".
Vertu added: "The board has been encouraged by the trading results for the period. The zero emission mandate to force the uptake of zero emission vehicles sold in the UK has the potential to create volatility in the new car market. This may include reduced supply of new petrol and diesel cars in the coming periods and would lead to a strengthening of petrol and diesel used car values."
Chief Executive Officer Robert Forrester said: "I am pleased to report that trading remains positive. Used car pricing has remained stable and we have gained market share in the new retail and Motability car market and delivered strong like-for-like volume growth in used vehicles. The performance of our high margin aftersales business has remained strong."
Vertu Motor shares were flat at 78.50 pence each on Tuesday morning in London.
By Tom Budszus, Alliance News slot editor
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