Shares of Gateshead-based car supergroup Vertu Motors plc said on Thursday its results for the full year “will be ahead of market expectations.”
Shares of the company, which operates out of 194 sales outlets across the UK, rose as much as 6.7% to their highest level in more than 19 years.
In a trading update ahead of the close of its financial half year ending August 31, Vertu Motors said: “The Group continues to review and transform its portfolio of operations and to expand its franchise representation.
“This includes the further development of relationships with Chinese automotive Manufacturers, including the launch of the Group’s first Omoda and Jaecoo outlets on 1 July 2026 in Burton.
“The Group has this month opened its first Leapmotor outlets in Harrogate and Crewe, alongside Vauxhall operations, and is working to introduce a further Geely outlet to an operation on Teesside.
“The Group also commenced representation of the Alpine franchise in Nottingham, alongside the existing Renault and Dacia outlets, and introduced the Renault and Dacia franchises to an existing outlet in Mansfield.
“The Group now operates 18 sales outlets representing Chinese automotive brands including BYD and MG. Further franchise portfolio developments are expected to be finalised in the coming months with focus on Chinese brands.
“The Group has further optimised the portfolio with the closure of a loss-making Mazda outlet in York at the end of July. In addition, the Group’s Sheffield Mazda operation was moved alongside Nissan, so reducing the operational cost base of the Group.
“As a result of these portfolio changes, anticipated capital expenditure for the full financial year will increase by £2.0m over previously announced levels.”
In its outlook, The Gateshead firm said: “Retail new vehicle order-take for the July-September calendar quarter is running ahead of prior year levels.
“Given the importance of September as a plate change month and quarter end for new car bonuses, the order-take levels give the Board confidence.
“The Group welcomes the Government’s consultation on the Zero Emission Vehicle (ZEV) Mandate. A more realistic trajectory would help the automotive sector in the next few years and provide greater choice to consumers.
“However, the result of the consultation may still leave the industry facing unrealistically high targets in both the car and especially the van vehicle channels in the years ahead.
“Given the trading trends and portfolio changes, the Board anticipates that full year results for FY27 will be ahead of current market expectations.”
Vertu Motors CEO Robert Forrester said: “The Group has delivered a strong trading performance in the five month period to 31 July 2026, with positive contributions from new and used vehicles, increased fleet market share, and continued momentum in our high-margin aftersales operations.
“Order-take levels for the important September plate change month give the Board confidence that results for the full year will be ahead of market expectations.
“We also welcome the Government’s consultation on the ZEV Mandate, an area on which we have actively engaged with Government for some time.
“We hope this will result in a more pragmatic transition to electrification which better reflects consumer demand and prevailing market conditions.
“There is now an opportunity for a reset to allow the automotive sector in the UK to make a bigger contribution to economic growth of the UK.”