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Car dealership drives profits forward
CAR dealer Vertu Motors has announced a 26.8 per cent profits hike after it bought up 10 showrooms in the last six months.
The Gateshead-based business, which trades as Bristol Street Motors, said revenue rose by 14.8 per cent to £628.1m in the six months to the end of August, while pre-tax profits jumped by 26.8 per cent to £5.2m. Vertu said the new car market is improving, which fuelled a 7.9 per cent like-for-like increase in volumes. There was also a 13.2 per cent increase in volume and margins in its used car sales.
The group has network of 86 sales and aftersales showrooms, 10 of which were added since the start of March, including sites in Hartlepool, Morpeth and Durham.
Robert Forrester, the company’s Chief Executive, said: “I am delighted to report that the group has delivered an excellent profit performance for the first half of the financial year with strong growth compared to the prior year. Market conditions have improved and this is reflected in higher sales volumes in both new and used cars.
“The group’s aftersales strategies are now consistently delivering growth of revenues and profits in the service area. In addition, businesses acquired in recent years are delivering on their growth potential and producing improving returns.
“With our strong balance sheet, the group continues to execute its growth strategy and further acquisition opportunities are being actively progressed. This, coupled with the turnaround strategy that we implement following the acquisition of new businesses, will continue to underpin shareholder value growth.”