Express & Star

Profits recover for Vertu Motors

Car dealerships group Vertu Motors saw profits recover strongly after the coronavirus lockdown.

Published

In the six months to the end of August it achieved adjusted pre-tax profit of £4.7 million on sales of £1.12 billion despite 10 weeks of showrooms being closed.

Vertu, which has 135 sites including Bristol Street Motors in Stafford and West Bromwich and Vauxhall Lichfield, made a loss of £14.3m in the first quarter of its financial year due to the lockdown, but the second quarter generated a profit of £19m, significantly ahead of the previous year's £3.8m.

The results were aided by Government support in the form of the furlough grant and business rates relief

A record trading performance has been delivered in the key month of September and the results for the seven months to the end of September give the board confidence that a strong financial outcome will be delivered in the full financial year

Chief executive Robert Forrester said: "The energised Vertu team delivered a safe operating environment for customers and colleagues and an outstanding trading performance as lockdown was eased.

"Individual records in used cars, afters ales and new cars were set across the group. We did the basics well and have increased investment in omni-channel technology, which has been received enthusiastically by customers.

"Vertu made a profit in the first half, we have taken £10m of annualised costs out of the business and period end net cash was £36m. This is an exceptional performance in the circumstances. We are well placed for the opportunities that an uncertain future offers.

"I would like to thank all my colleagues, our manufacturer partners, our customers and our other key suppliers for their hard work and support during this unprecedented period."

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