Gateshead-based Vertu Motors plc said has agreed a further £3 million share buyback programme, to be activated once its existing £0.6 million programme runs out. 

The company said it has bought about 3.3 million of its shares n the financial year to date, representing 1% of opening shares in issue, for a total cost of £2.4 million. 

“The Board believes that this is an appropriate use of capital and will continue a programme of buybacks as a relevant element of returns to shareholders, alongside dividend payments,” the company said. 

Vertu’s shares have declined 25% over the past 12 months as the wholesale value of used cars in the UK has dipped. 

For the first half of the year, the company said adjusted profit before tax fell 25% to £23.5 million, hurt by higher operating expenses and finance charges.

However, it said September trading performance was in line with prior year levels and profitability in the second half was expected to improve over prior year levels due to a stronger used car market and enhanced used vehicle trade values.  

Robert Forrester, Chief Executive, said: “The retail new car market declined as the Government’s regulation to transition to battery electric vehicles introduced market volatility and negative effects in terms of affordability. We took considerable market share in the new retail market, and in the BEV market in particular, reflecting the Group’s adaptability and strong operational execution.”