Gateshead-based Vertu Motors plc on Wednesday published an AGM trading update for the three-month period to May 31, 2025, reporting new car retail like-for-like volume growth of 7%.
Used vehicle like-for-like volumes fell 3.8% “reflecting tight supply in the used vehicle market and subdued consumer demand.” However, margins increased to 7.5% from 7.3% and consequently, gross profits from the sale of used vehicles increased on prior year levels.
Vertu anticipates that full year results for FY26 will be in line with current market expectations.
Adjusted profit before tax in the period “remains ahead of prior year levels.”
In its outlook, Vertu said: “The board is encouraged by the group’s start to FY26, particularly the growth of the new retail market in March.
“The board remains cautious in respect of the consumer outlook and continued pressure in the new car market from the Government’s Zero Emission Mandate promoting electric vehicle adoption.
“The full year result is expected to be in line with current market expectations.
“The share buyback programme of £12m capacity, announced in February 2025, has continued throughout the period with £4.5m of the programme utilised to date in the purchase of 7.8m shares for cancellation, leaving £7.5m to deploy.
“Since the group started its share buyback programme in FY18, 18.5% of the group’s issued share capital has been repurchased.
“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.”
Vertu CEO Robert Forrester said: “Since the beginning of the financial year, a period which includes the important trading month of March, the group has traded well in a challenging macro-economic environment.
“New retail volumes are up materially with the group benefiting from market share gains, and our high margin aftersales business continues its out-performance.
“This encouraging start to the year is balanced by ongoing headwinds of a challenging consumer and business environment and the Government’s ZEV mandate promoting accelerated electric car adoption.”