Vertu exceeds market expectations in six-month results
Automotive retailer Vertu has exceeded market expectations, registering a £51.8m adjusted profit before tax on revenues amounting to £1.9bn.
In the six-month period ending 31 August, the company reported a gross margin of 11.6 per cent as well as a £57.3m net cash flow, compared to £36.5 registered in the first quarter of FY2021.
“The record profitability delivered in the period has undoubtedly been aided by very favourable used vehicle market conditions, however, this is a remarkable performance outperforming market trends,” said Vertu’s chief executive Robert Forrester.
“We have again generated significant free cash flow and have a very strong balance sheet making the group very well placed to benefit from the changes and significant opportunities which are ahead of it.”
As net tangible assets per share amount to 61.5p compared to 50.2p registered in February, the group has repurchased 2 million shares for £1.1m, starting to pay pack its investors.
“The resumption of paying dividends to shareholders shows the board’s optimism in our strategy and its execution,” added Forrester.
In its report, the group also highlighted how September has emerged as a key month, with the delivery of a £20m trading profit – a result that has exceeded the levels obtained in the last few years. The result was achieved despite vehicle supply constraints, which are expected to continue until the end of the financial year.
According to the group’s chairman Andy Goss, the results achieved are a consequence of the company’s strategy and technological capabilities, including the launch of Click2Drive – an online car retailing platform.
“The board is optimistic that the group’s significant strengths will allow a new period of expansion to commence, to deliver a business of greater scale, profitability and cash flow to pay growing dividends whilst remaining disciplined in the allocation of capital,” he said.