Shares of Gateshead-based Vertu Motors plc rose about 4% on Wednesday after it published an AGM trading update saying it anticipates its full year adjusted profit before tax will be “above current expectations and in the range of £28m – £32m.”

At the AGM, 32.37% of shares were cast against Vertu’s remuneration report.

“To date the group has seen a continuation of the strong trading trends witnessed in March and April as explained in the year end results announcement released on 12 May 2021,” said Vertu.

“If these trends continue, a strong first half financial performance is anticipated, however, there remain risks in relation to the remainder of the financial year concerning potential COVID-19 disruption and vehicle supply constraints.

“A tightening of new vehicle supply, largely reflecting component shortages flagged in the year end announcement, is increasingly apparent.

“The expected time between order and delivery of new vehicles to customers for certain of the group’s franchises is now seeing elongation.

“The used car market remains very robust from a demand perspective.

“The reduction in new car supply is contributing to a reduced supply of used vehicles, with a resultant exceptional wholesale pricing environment.

“In light of the strong trading performance to date, driven largely by the exceptional used car market environment, the board now anticipates that the group’s full year adjusted profit before tax will be above current expectations and in the range of £28m – £32m.

“The board remains confident in the prospects for the group.

“With its strong asset base, scale, manufacturer relationships, well invested systems including the Click2Drive sales technology platform and experienced leadership team, the board believes that the group is strategically very well placed to capitalise on the changes and opportunities in the UK motor retail sector.”