Gateshead-based Vertu Motors plc said its revenue rose 1.7% to £4.76 billion in the year ended February 28, 2025, with adjusted profit before tax falling 15.8% to £29.3 million.
Vertu is one of the UK’s six automotive retail “supergroups” that generate over £4 billion in annual turnover.
“Profits reduced year-on-year due to a weak new car retail market in the UK and pressures arising from the Government Zero Emission Vehicle (ZEV) mandate,” said Vertu.
“The Group outperformed the UK new retail market gaining market share including Battery Electric Vehicle (BEV) retail sales.”
Full year dividend fell to 2.05p per share from 2.35p.
£4.8 million was returned to shareholders via a repurchase of 7.5 million shares during the year.
On its current trading and outlook, Vertu said: “Overall profits in March and April were ahead of prior year levels and this gives the Board confidence for the year ahead.
“The Group has undertaken a significant number of start-ups and acquisitions in recent periods which are on track to start to contribute in FY26.
“There remains considerable economic uncertainty in the UK, and the automotive sector generally, from the Government’s ZEV mandate, the economic impact of the Budget and the impact on Manufacturer Partners of the recent US tariffs on US auto imports.
“The Group is well positioned with stable management and a very strong balance sheet with low gearing to take advantage of opportunities as they arise.
“A £12m share buyback programme was announced in February 2025 and to 30 April 2025, £2.2m of this programme has been utilised in the purchase of 4.2m shares, leaving £9.8m to deploy. These purchases will increase earnings per share and the Board remain committed to an ongoing buyback programme.”
Vertu Motors plc CEO Robert Forrester said: “With challenging market conditions during the Year which saw the lowest new retail car market for 25 years, we have focused on the things we can control and delivered increased new retail electric vehicle sales ahead of the market and strong performances in used cars and aftersales.
“In addition, cash generation was robust in the second half with net debt levels reduced compared to market expectations. In anticipation of Government related cost pressures effective 1 April 2025, the business undertook a significant cost reduction programme to fully offset the impacts and position the Group for the future.
“Trading in March and April has been stronger than the prior year, as the UK retail new car market improved from its lows and the Group continued to focus on operational excellence. Our high margin Aftersales business has sustained its robust performance.”