Vertu Motors delivers 'strong' H1 trading performance despite supply constraints

Automotive retailer Vertu Motors said on Tuesday that it had delivered a "strong" first-half trading performance, leaving the group positioned to trade in line with full-year market expectations.

Vertu Motors said it had "performed strongly" in the first half, however, the group cautioned that uncertainty remains around vehicle supply and the macro-environment for consumers - which it thinks will likely continue to be affected by rising energy costs and inflation.

The London-listed group noted that supply constraints in new vehicles had continued, due to dislocation in global supply chains, and stated there were also supply constraints in used cars, which, combined with the comparative period in the prior year reflecting post lockdown pent-up demand, resulted in a decline in like-for-like used car volumes.

Vertu's high-margin aftersales departments delivered revenues ahead of prior year levels on a like-for-like basis but operating expenses increased year-on-year as a consequence of rising costs and the removal of Government support for business rates, which reduced costs in the first half of 2021 by £5.2m.

Consequently, Vertu anticipates that profitability will be more weighted to the first half of the financial year but anticipates that its full-year trading performance will be in line with current market expectations.

As of 0900 BST, Vertu shares were down 2.59% at 45.54p.

Reporting by Iain Gilbert at Sharecast.com