Wednesday, October 22, 2008
Vertu posts £3m half year profits
Vertu Motors this morning reported a swing from a £100,000 operating loss to a £3m operating profit.
The dealer group's half-year results show turnover up to £423.5m, compared to the £290.3m sales in its first five months of trading.
Although much of that growth was through acquisitions, £26m of organic growth was achieved at its Bristol Street Motors dealerships.
Chief executive Robert Forrester reported that new car registrations at the franchised dealerships increased 13.5% on a like for like basis, and used car volumes rose 15.1%.
Coventry closure
In contrast, its Motor Nation used car outlets have been hit by the challenging market, with volumes down 8.8% and the operation slipping from breakeven to a £100,000 loss in the period.
Following a review, Vertu closed its Coventry Motor Nation site at the start of September due to significant losses.
It also closed a used van centre in Birmingham, and said cost review programmes are in place across the group.
Improvements have been made to stock turn, and Vertu has improved fleet sales profitability, although seen a 3.4% drop in fleet volumes, due to a shift away from lower margin fleet volume.
DATED: 22.10.08
FEED: AM
