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Vertu Motors PLC said on Wednesday that annual revenue increased but profit fell amid higher costs, but noted an improved trading performance in the new financial year. The Gateshead, England-based car dealership company said pretax profit fell by 59% in the financial year ended February 28 to £32.5 million from £78.8 million a year ago. Revenue increased by 11% to £4.01 billion from £3.62 billion. However, operating expenses went up 16% to £406.4 million from £349.7 million. Cost of sales increased 12% to £3.57 billion from £3.18 billion and finance costs increased 52% to £10.8 million from £7.1 million. Vertu Motors declared a final dividend of 1.45 pence per share, a 38% increase from 1.05p year on year. This brought the total dividend to 2.15p per share, up by 27% from 1.70p. Meanwhile, Vertu Motors reported an improved trading performance in the ‘key months’ of March and April this financial year, and said improvements in new vehicle supply were ‘evident’. However it said cost pressures remained due to continued high inflation. ‘The year was critical for the group as we undertook our largest ever acquisition and generated over £4.0 billion of revenues for the first time...The acid test was how our core group and new dealerships performed in March and April and I am delighted to report that the trading result post year end has been encouraging and gives confidence for the year ahead’, commented Chief Executive Officer Robert Forrester. ‘The reported results reflect a strong profit and excellent cash performance, both ahead of expectations...The business is in a healthy financial and operational position to further develop and gain from the benefits of scale as sector consolidation continues.’ Shares in Vertu Motors were up 3.3% at 59.92p each in London on Wednesday midday. Copyright 2023 Alliance News Ltd. All Rights Reserved.
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