Vertu sets new record for fifth year 15 | 05 | 2017
VERTU MOTORS GROUP, parent company of Macklin Motors in Scotland, has recorded “record group trading performance” with turnover up from £2.42 billion to £2.82bn. Adjusted profit before tax, for the year ended February 28, increased 15% from £31.5 million to £27.4m. (Related: New £5m Nissan dealer opens in Scotand)
Vertu’s board also stated it remains confident of the group’s continued aim to grow through acquisition.
“Today’s results, our fifth consecutive year of growth, evidences our continued delivery of this strategy,” Robert Forrester, Vertu chief executive, said.
“Record Profit before Tax of £29.8m represented a 14.6% increase for the group, EBITDA rose to over £40m (to £41.4m from £31.5) for the first time and cash conversion was excellent.
“Our strong balance sheet with net cash of £21.0m together with our unutilised debt facilities provide scope for further scaling-up in due course to drive value and further enhance shareholder returns.
“Trading up to the end of April 2017 has been strong giving the board confidence for the future. The full year dividend has been increased by 7.7% (1.3p to 1.4p).”
Related: Scots Nissan dealer scores a winner
Vertu ended its financial year with a strong balance sheet to fund future growth with net cash of £21.0m (2016 : £23.1m) and new five-year acquisition banking facility signed in February of £40m, with the potential to add a further £30m.
New car volumes in retail rose by 4.4% to 41,525 and used by 13.9% to 81,636 – 6.9% and 7.1% like-for-like – during the reported period.
Fleet and Commercial vehicle sales represented a 23% share of group revenues, the delivery of over 35,000 vehicles realising a total fleet and commercial volumes rise of 1.3% with like-for-like volumes down 1.5%.
Vertu has also recently introduced a full online used car retailing provision to its portfolio in 2016, offering part-exchange valuation and a finance provision.
Forrester believes this will put the group “ahead of the curve” after a year which saw car revenues rise from £850m in 2016 to £1.04bn in 2017.
The group, which was established in 2006, currently operates 121 franchised sales outlets and three non-franchised sales operations from 104 locations across the UK.
Related: New Jewell for Macklin Motors
Keep up-to-date with all the latest news by following us on twitter.com/Scotcars
Jim McGill