Shares of Gateshead-based Vertu Motors plc rose as much as 6% on Wednesday after it published results for the year to February 28 showing revenues fell about 19% to £2.5 billion but profit before tax rose to £22.4 million from £7.3 million.

Adjusted profit before tax of £24.6 million was ahead of analysts’ forecasts and ahead of the £23 million achieved in the previous year.

Vertu, which has a network of 149 sales and aftersales outlets across the UK, also reported a strong start to new financial year with trading profits at “a record level” in the two months to April 2021.

It reported adjusted profit before tax in the two months of £19.2 million, up from £14.8 million in the same months of 2019.

Vertu said it expects to deliver an adjusted profit before tax for the year ending February 28, 2022, in the range of £24 million to £28 million.

The firm said it is confident that “dependent on the financial performance of the group” dividends can recommence in January 2022.

Vertu CEO Robert Forrester said: “These results, which are ahead of expectations, are outstanding in the Covid interrupted circumstances.  

“I am proud of the entire Vertu team for their adaptability and effort to deliver these remarkable results.

“The group has significantly evolved during the year, with accelerated delivery of its strategy in achieving enhanced online sales capability via its inhouse developed Click2Drive technology platform, reduced cost base due to productivity gains and significantly grown the number of sales outlets. 

“We have started the new financial year very strongly, have generated record levels of cash and have a very strong balance sheet. 

“We have now re-instated guidance.

“Brexit uncertainty is now behind us, and we are exceedingly well placed to benefit from the changes and opportunities which are ahead of us.”