Member Article

Acquisitions boost profits for Vertu Motors

Car dealership owner Vertu Motors has announced 26.8% profit rises to £5.2m before tax, after it bought up 10 sales outlets in the last six months.

The firm, which started life in Bristol with the purchase of Bristol Street Group in 2007, said it had increased its revenue to £628.1m, which is a 14.8% rise like-for-like.

Vertu has over 80 locations across the UK, including Ford, Nissan, Vauxhall and Fiat dealerships, among many other car manufacturers.

Since March this year, the company has made acquisitions in Nottingham, Hartlepool, Morpeth and Durham, as well as taking up outlets in Doncaster, Derby and Bradford.

Vertu Motors’ Chief Executive, Robert Forrester, said: “Market conditions have improved and this is reflected in higher sales volumes in both new and used cars.

“Businesses acquired in recent years are delivering on their growth potential and producing improving returns.

“With our strong balance sheet, the Group continues to execute its growth strategy and further acquisition opportunities are being actively progressed.

“This, coupled with the turnaround strategy that we implement following the acquisition of new businesses, will continue to underpin shareholder value growth.”

The business said struggles in the European car market had put pressure on the group’s manufacturing partners, and subsequently impacted margins on new cars.

However, strong sales in new and used cars meant the company could celebrate improved profits for the first half of the year.

Vertu is currently the ninth largest car retailer in the UK, and was established six years ago before listing on the AIM in December 2006.

This was posted in Bdaily's Members' News section by Miranda Dobson .