The Vertu Motors Plc (LON: VTU) share price rose 2.83% after releasing its unaudited interim results for the six months ended 31 August 2023. The company revealed that it had delivered its strategy of growing through a franchised dealership group, as evidenced by the integration of the crucial Helston acquisition.
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The franchise vehicle dealership operates 190 sales and aftersales outlets across the UK. The company generated revenues worth £2,422.5 million in the first half of its 2024 financial year, marking a 20% improvement from the H1 fiscal 2023 revenues of £1,999.7 million.
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The company attributed the record revenues to its acquisitions and growth in the core group, whose profits increased £11.9 million during the Period. The company noted that its adjusted profit before tax came in at £31.5 million, representing an 11.7% increase from the £28.2 million recorded in H1 fiscal 2023.
Vertu Motors' gross margins fell slightly to 11.0% in H1 fiscal 2024 from 11.2% in H1 fiscal 2023. Still, there was an increase in gross profits generated from per-unit used vehicle sales compared to H2 2023.
The company’s free cash flows reflect its targeted investment in used vehicle inventory, which could fuel its market share gains in H2 of its current fiscal year. The company also revealed that it had reduced its Capex forecast for the entire year by £10.2 million.
The Vertu Motors’ board expects its full-year profits to align with current market expectations. Despite the economic headwinds, the company also exhibited robust performance in September, a plate change month. Vertu also noted that the supply of new vehicles keeps improving.
Robert Forrester, Vertu Motors CEO, said: “The Group has delivered 11.7% year-on-year profit growth benefitting from increased scale. The consistent strategies around digitalisation, cost efficiency, smart capital allocation and the development of our management and colleagues is providing a firm grounding to deliver value to our shareholders. The interim dividend increase of 21.4% shows the Group's financial strength and the progress being made. Trading in the key month of September was strong reflecting the plate change in new cars.”
Vertu Motors (VTU) stock price.
The Vertu Motors share price rose 2.83% to trade at 72.39p, from Tuesday’s closing price of 70.40p.
YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY.