- The Gateshead-based dealership chain owns the Bristol Street Motors brand.
- Recent acquisitions contributed around £450m to the group’s turnover.
Vertu Motors achieved record revenue last year despite used vehicle prices falling towards the end of the period.
Britain’s third-largest car dealership chain, owner of the Bristol Street Motors brand, saw turnover rise 17.6 per cent to £4.7bn in the 12 months to the end of February.
Recent acquisitions, including Helston Garages, the largest acquisition in Vertu’s history, contributed around £450 million to group revenues, while core sales increased by more than £300 million.
Vertu also told investors on Wednesday that it is finally starting to see growth in the price of used cars.
Good business: Vertu Motors, owner of the Bristol Street Motors brand, reported that its turnover rose 17.6 per cent to £4.7bn in the 12 months to the end of February.
Vehicle purchases grew 11.4 per cent to 187,769 over the year, with demand increasing for both new and second-hand vehicles in a challenging retail environment.
Used car revenue rose 9.5 per cent to £1.8bn, even though trading was hit by cost of living pressures, high interest rates and insurance costs.
Wholesale prices for second-hand vehicles also fell 10.3 percent between October and December as market supply improved and sellers became more willing to impose discounts to clear inventory levels.
Robert Forrester, chief executive of Vertu, said: “It was a pleasure to see the group successfully navigate a difficult trading period.”
He added that used car prices and margins had “stabilised” since the start of the year, while the company recorded “successful months” at the start of its new financial year in March and April.
During those two months, the Gateshead-based company saw like-for-like retail new vehicle volumes outperform the overall market downturn, with second-hand car levels growing 5.8 per cent year-on-year.
Vertu believes prices and the used vehicle sector are likely to “remain strong” this year, thanks to increased supply and “consumer offers” from carmakers seeking to avoid sanctions.
But bosses are warning of numerous potential difficulties, including continued high interest rates and inflationary pressures, a looming general election and disruption to new vehicle supply levels linked to the transition to greener vehicles.
Neil Shah, executive director of content and strategy at Edison Group, said: “Looking ahead, the sector remains concerned about the regulatory effects of the push towards Net Zero and how it could lead to fines for manufacturers.
“Still, this is a positive set of results in a sector that is now recovering from the supply chain disruption and low consumer confidence of the previous two years.”
Vertu Motors Stock They rose 1.6 per cent to 77.3p on Wednesday morning and have expanded by around a quarter over the past year.
