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Breaking: Pretax profits jump 33% for Gateshead automotive retailer Vertu

Gateshead-based automotive retailer Vertu Motors has announced a strong set of results for the year ended 28 February 2015, as anticipated in a pre close trading update published in March.

Pretax profit jumped from £15.8m to £21m, an increase of 32.9%, meaning earnings per share increased from 4.87p to 4.15p, an incrase of 17.3%.

In addition the company reported a revenue increase of 23.2%, jumping from £1.7bn last year to £2.1bn this year. With like for like revenues up 11.4%, this is the first time Vertu have reported revenues to be over the £2bn mark.

Vertu’s acquisition and turnaround strategy is a chief factor in driving profit growth. The company increased the number of outlets it has to to 116 (2014: 106), with 14 new outlets acquired or opened since 1 March 2014.

Moreover, Vertu recently announced earnings enhancing acquisitions of additional Land Rover and Jaguar dealerships, driving growth further.

Now Vertu are reporting that trading performance in March and April is ahead of its current year financial plan and significantly ahead of prior year levels.

Robert Forrester, Chief Executive of Vertu said: “The group is delivering a strong trading performance driven through its successful acquisition growth strategy and improvements in its underlying organic performance.

“Many businesses within the dealership portfolio in the group have the potential to achieve enhanced margins. We have substantial funds and financial capacity for further expansion and continue to see attractive acquisition opportunities.

“In view of the confidence the Board has in the group’s prospects, we today announce that, following a review of dividend policy, the board intends to increase the dividend and adopt a dividend cover moving closer to four times. The proposed full year dividend represents an increase of 31.3% as the board focuses on delivering enhanced shareholder returns.”

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