Wed, 05 Oct 2022 | BUSINESS NEWS
Car retailer Vertu Motors has said that it is planning further acquisitions after reporting strong first half results, despite facing an array of challenges. During the six months ending August 31 2022, Vertu grew its scaled franchise dealership group and began Toyota operations in the West of Scotland.
In July, the company completed the acquisition of online retailer Wiper Blades and, looking forward, it says that it has a strong pipeline of potential acquisitions, noting the high degree of fragmentation within the market.
In a statement, company chairman Andy Goss said: "The group's excellent financial position, continued investment in its colleagues and systems and its established track record of execution gives me confidence that we will continue to deliver on our strategic objectives.”
"The group has the scale and firepower to take advantage of the considerable sector changes working in partnership with the group's manufacturer partners through accretive consolidation of this fragmented market."
During the six months to the end of August, Vertu was subjected to supply chain issues and cost pressures and saw its adjusted pre-tax profits fall from £51.8 million to £28.2 million. However, during this time, the firm was also able to grow its revenue from £1.92 billion to £1.99 billion.
The company says that it has developed an energy strategy in response to rising energy costs and adds that its second half has started strongly. The firm says that its key month of September saw strong performance, with constrained supply of new and used vehicles offset by higher margins.
Vertu Motors Chief Executive Robert Forrester (pictured above) said: "The first half has seen a strong trading performance with vehicle margin strength offsetting market driven volume shortfalls. The group continues to benefit from its focus on operational excellence around cost, conversion and customer experience aided by continued digitalisation initiatives.”
"Cashflow generation has been strong and the dividend for the first half has increased again. The business is strategically very well placed with significant firepower to expand its footprint of franchised dealerships across the UK."
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