Vertu Motors group profitability remains ahead of prior-year levels

Car dealer Vertu Motors said on Thursday that group profitability in October and November continued to be delivered ahead of prior-year levels.

Vertu stated while shortfalls in the supply of both new and used vehicles in the UK had continued due to ongoing supply chain issues, new vehicle supply in October and November was "better than envisaged" and cars were sold at enhanced margins.

The AIM-listed firm highlighted that customer demand had also remained positive, with strong future order banks in all new vehicle channels being evident.

Used vehicle supply constraints were said to have continued to underpin vehicle values, which Vertu said had now plateaued and were starting to follow "more normalised seasonal trends".

Vertu added that it remains cautious on its future outlook with the potential of further disruption from Covid-19 to its resource levels, consumer confidence and global supply chains.

"Considering the robust trading performance delivered for the year to date, the board now anticipates that the group's adjusted profit before tax for the year ending 28 February 2022 will be no less than £70.0m (previously not less than £65.0m)," said Vertu.

As of 0900 GMT, Vertu shares were down 1.16% at 68.20p.