14th Oct 2015 09:04
LONDON (Alliance News) - Vertu Motors PLC on Wednesday said it anticipates its full-year results to be ahead of expectations after profit rose in the first half of its financial year, and said it has not suffered any disruption following the Volkswagen emissions scandal.
The automotive retailer reported 28% growth in pretax profit in the six months to August 31 to GBP16.4 million from GBP12.8 million the year before, as revenue rose 14% to GBP1.24 billion from GBP1.1 billion.
It said revenue growth was boosted by acquisitions as well as increases in both vehicle sales and aftersales revenue.
Vertu added that it operates all four core brands of the Volkswagen Group in the UK, with the franchises representing around 9% of group revenue. It said it is currently working to ensure that any impacted vehicles are identified and issues resolved following the diesel emissions scandal. It said this will boost aftersales revenue in the near term and that it has not yet witnessed a significant decline in total vehicle sales volumes or used car valuations above normal seasonal variations following the revelations of emission tests cheating.
Vertu will pay an interim dividend of 0.45 pence, up 29% on the 0.35p it paid the year before.
Vertu added that trading in September continued strongly with results ahead of last year and that it now anticipates its full-year results to be ahead of its expectations.
"The group has a strong balance sheet and net cash position, despite significant capital expenditure and acquisition investment in the period. This, together with the operational management strength in the group, gives the board great confidence to keep growing the business, organically and through acquisitions, in the period ahead as the ongoing consolidation of the sector continues," Chief Executive Robert Forrester said in a statement.
Shares in Vertu were trading up 3.8% at 69.26 pence Wednesday morning.
By Karolina Kaminska; [email protected] @KarolinaAllNews
Copyright 2015 Alliance News Limited. All Rights Reserved.
Related Shares:
Vertu