1st Sep 2015 08:07
LONDON (Alliance News) - Vertu Motors PLC Tuesday said its results for the full financial year will be in line with current expectations after its sales grew in the five months to July 31.
The automotive retailer reported a 13.8% rise in group revenue in the five-month period, as like-for-like sales grew 5.0%. Service revenue increased 12.9%, or 6.4% on a like-for-like basis.
Vertu said that the high-margin aftersales business continued to gain momentum with improved customer retention into the service channel. Like-for-like sales grew 3.8% and gross margin increased to 45.7% from 44.0% in the period.
Vertu added that its order levels for the delivery of new retail vehicles to private customers in the "important" registration plate change month of September is up on last year's record levels. In the five-month period, it recorded 1.5% growth in private registrations for the franchises represented by the group.
"We are pleased with the way the business has performed in the period and the board is confident in the future. The recent strength of the new car market will continue to grow our high margin aftersales business. The UK economy is growing, the UK consumer is spending, and new and used cars are very affordable," Chief Executive Robert Forrester said in a statement.
Shares in Vertu Motors were trading down 1.5% at 64.25 pence Tuesday morning.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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