Vertu Motors Profit Report

Vertu Motors announced that its pretax profit aligns with market expectations as inventory levels were reduced and the price decline of used vehicles stabilized.

Financial Outlook for Fiscal 2024

The U.K. car retailer anticipates reporting adjusted pretax profit for fiscal 2024 that is consistent with market consensus, excluding exceptional and one-off items.

Inventory Management Leads to Improved Gross Profit

By decreasing overall inventory levels, Vertu Motors saw an enhancement in gross profit per unit. This positive trend followed the stabilization of used vehicle pricing, which had previously impacted profits and prompted a guidance revision in December.

Strong Financial Performance for Five-Month Period

Revenue Growth:
On a like-for-like basis, the group reported a revenue growth of 7.8% for the five-month period ending Jan. 31.
Services Division:
Revenue for the services division increased by 5.3%.

Vehicle Sales:

• Used vehicles sold during this period increased by 0.8%.
• New vehicle sales volume experienced a decrease of 5.1%.

Robust Debt Reduction and Cash Flow Generation

Vertu Motors is on track to reduce net debt to GBP60 million to GBP65 million, surpassing market expectations. This achievement reflects strong working capital management and the generation of free cash flow.

Aftersales Success and Cost Control

CEO Robert Forrester highlighted the flourishing aftersales business, supported by a rise in technician numbers. The company's focus on cost control efforts and optimizing stock levels has greatly contributed to its exceptional cash performance.