16th Oct 2013 07:28
LONDON (Alliance News) - Vertu Motors PLC Wednesday said its pretax profit rose by 69% to GBP8.6 million in its recent half year on the back of increased revenues.
The automobile retailer said it expects its full-year results to be "significantly ahead of market expectations" because of its acquisition of Farnell Land Rover.
"The group has made the most of the market opportunity with good performances in the core business and the turnaround of new dealerships progressing well. The acquisition of Farnell Land Rover in the period will benefit results going forward and market conditions remain favourable with September trading being strong," Chief Executive Robert Forrester said in a statement.
Vertu said it made a GBP8.6 million pretax profit for the six months ended August 31, compared with GBP5.1 million for the corresponding period last year.
Vertu said the main driver of the UK new vehicle market during the period continued to be the supply push from manufacturers who are facing sustained significant reductions in demand in continental European markets.
"Affordability of new cars is increasing, with monthly payments at similar levels to 2008 despite enhanced specification, fuel efficiency and design. With consumers still cognisant of cost of living issues, changing to a new car with enhanced fuel efficiency can reduce household monthly motoring expenditure," the company said in a statement.
The company also said that strong volume and margins in used cars led to 12% increase in like-for-like gross profit generation.
The AIM-listed company's gross profit was up 30% to GBP93.1 million, which outpaced a 26% increase in operating expenses.
Vertu declared a 0.30 pence per share interim dividend, up 20% on last half year.
Vertu shares were Wednesday quoted at 61.06 pence, up 12%.
By Samuel Agini; [email protected]; @samuelagini
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