Automotive retailer Vertu Motors plc (VTU.L) Monday reported that its five-month group revenues increased 3.3 percent on a like-for-like basis, with 8.4 percent increase in service revenues.
The company said its first-half profits will be lower than prior year levels as anticipated, and fiscal 2025 adjusted profit before tax is expected to be broadly in-line with current market consensus.
The company further projects that performance in the second half would improve over prior year levels due to a stronger used car market and enhanced used vehicle trade values.
In its trading update for the five-month period to July 31, ahead of its first-half period ended August 31, the company noted that group aftersales operations delivered a robust performance with revenue and gross profit growth achieved in all areas on the back of strong execution and higher technician resources.
Used vehicle like-for-like volume growth was 5.0 percent and gross margin increased to 7.2 percent. UK used vehicle values stable on increasingly constrained supply.
Group new retail vehicle sales volumes were down 5.8 percent in the five-month period, significantly outperforming UK market which saw a 12.1 percent decline.
The like-for-like volumes in the fleet car channel grew 9.4 percent in the period, while like-for-like sales of new commercial vehicles fell 15.6 percent.
The Group like-for-like used vehicle volumes grew 5 percent.
The company will announce its interim results on October 16.
Robert Forrester, Chief Executive of Vertu Motors said, "The retail new car market remains weaker as the Government's regulation to transition to battery electric vehicles causes market volatility and negative impacts."
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