Vertu Motors raises FY adjusted pre-tax profit guidance

British automotive retailer Vertu Motors said on Wednesday that full-year adjusted pre-tax profits were now expected to be no less than £75.0m as sector tailwinds and limited vehicle supply led to augmented margins.

Vertu upgraded its full-year adjusted pre-tax profit guidance to £75.0m from previous estimates of £70.0m, both of which were well and truly ahead of last year's figure of £24.6m.

Group revenues were seen 18.1% higher year-on-year, or 9.4% on a like-for-like basis, and Vertu also highlighted it had added delivered significant growth in like-for-like vehicle sales margins and gross profit generation in all channels compared to the previous two financial years.

Chief executive Robert Forrester said: "I am pleased to report that the board now expects the trading result for the year ended 28 February 2022, at an adjusted profit before tax level, to be not less than £75.0m.

"The trading results have been aided by sector tailwinds and limited vehicle supply leading to augmented margins. In addition, recent acquisitions have contributed at a higher level than initially envisaged due in part to a swift and successful integration process."

Separately, Vertu announced that it will shortly launch another £3.0m share buyback programme following the purchase and cancellation of 4.62m ordinary shares of 10.0p each at a total cost of £2.99m back in November 2021.

As of 1045 GMT, Vertu shares were up 6.60% at 61.40p.