5th Mar 2015 08:47
LONDON (Alliance News) - Vertu Motors PLC shares were trading lower on Thursday morning, despite the company saying it expects its full-year results to meet market expectations, as it warned that the recent strong growth in the new car market in the UK looks to be plateauing.
Vertu said it expects its trading performance for the year to February 28 to be in line with current market expectations.
The company said total group revenue in the five months to the end of January rose 17.8%, with total vehicle sales volumes growing 14.3% and like-for-like vehicle sales volumes rising 7.7%. Like-for-like private new retail sales volume grew 0.5%, Vertu said, while like-for-like new fleet and commercial volumes grew 16.7%, ahead of the average market growth of 9.6%. Like-for-like used vehicle sales grew 6.4% and aftersales revenue rose 1.8% on better margins, the company added.
But despite of the robust performance for the 2015 financial year, Vertu said the new car market in the UK looks to be stabilising following a boom period. The drivers of a supply push from car manufacturers, including continued weak demand in the eurozone and the strength of sterling, are continuing, Vertu said.
The company said the used-vehicle market is likely to see an increase in the volume of cars entering the market, allowing the potential for higher sales levels but at weaker margins.
Vertu said remains confident on its prospects, with a focus on tight stock management and pricing discipline.
It will publish its full-year results on May 13.
Shares in Vertu were down 9.7% to 55.12 pence on Thursday.
By Sam Unsted; [email protected]; @SamUAtAlliance
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