Vertu Motors has reported a decline in profits despite outperforming market trends, driven by higher operational costs.
- The dealership group plans to consolidate all its brands under the Vertu name by next spring, dropping the Bristol Street Motors and Macklin Motors brands.
- Increased revenues have been recorded, with a notable 5.2% rise in new car sales despite a national drop in car registrations.
- A strategic focus on expanding offerings from Chinese car manufacturers, amidst changing regulatory environments, is underway.
- Executive leadership expresses optimism for growth, supported by strategic acquisitions, a robust portfolio, and operational efficiencies.
Vertu Motors, while experiencing a decline in profit margins due to rising costs, has managed to surpass market trends. The decline in profits is attributed to increased expenses such as higher depreciation on electric vehicles and expanding workforce costs to support growth initiatives.
The group is making a strategic brand transition, aiming to rebrand all sites under the Vertu name. This move, planned for completion by next spring, is intended to streamline operations and eliminate the legacy brands Bristol Street Motors and Macklin Motors.
Despite the challenging economic environment, Vertu has reported a revenue increase to £2.49 billion, marking a rise from £2.42 billion the previous year. This growth reflects the group’s strong performance in new car sales, which contrasted with a 1.8% decline in national car registrations.
Vertu’s strategy includes a significant push into the Chinese electric vehicle market. The dealership has opened a site for BYD, a Chinese electric vehicle maker, and plans further expansions with brands like Leapmotor. This comes as the UK remains unique among Western nations in not imposing heavy tariffs on Chinese vehicles.
Robert Forrester, Vertu’s CEO, remains positive about the group’s trajectory, citing strong aftersales performance and the company’s ability to adapt to market demands, particularly in the growing electric vehicle sector. The focus on high operational standards and a robust balance sheet underpins their strategic goals, alongside ongoing efforts to enhance shareholder value.
Despite rising costs, Vertu Motors is poised for growth through strategic brand consolidation and expansion into new markets.
