Vertu Motors (LON:VTU) has produced another solid set of figures, supported by a series of key investments to strengthen the medium-term outlook. Trading in the new car market has become more challenging, but the key used car and aftermarket operations continue to progress consistently.
Another good year
Vertu’s FY17 results are at the upper end of market expectations, showing revenue up by 16.5% to £2.82bn and adjusted PBT by 15.0% to £31.5m; dilution from a £35m (gross) equity fund-raising restricted the rise in adjusted diluted EPS to just 1.9%. The dividend was lifted by 7.7% to 1.4p. While UK new car registrations were at record levels, trading conditions became more challenging from Q1 onwards, especially following the Brexit vote, which led to weaker sterling and rising new car prices. The group’s key used car and aftermarket operations (71.5% of gross profit) performed impressively, delivering a 20% increase in profits.
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