Vertu Motors has seen buying and selling income enhance within the three-month interval to Might 31 this yr resulting from its £117m acquisition of Helston Garages on the finish of final yr.

The enterprise stated buying and selling income are above prior yr ranges, “regardless of continued inflationary-driven price headwinds”.

The 189 site-strong prime 5 AM100 group is anticipating its full yr outcomes for 2023 to be in step with expectations in an announcement to the market as a part of its annual normal assembly buying and selling replace.

Vertu acquired 28 franchised gross sales retailers from Helston, with manufacturers together with BMW/Mini, Ferrari, Jaguar Land Rover, Peugeot and Volvo in a transfer that added vital scale and geographic protection of the South West to the group’s present footprint of retailers.

Within the new retail and Motability channel, like-for-like volumes grew 10.8% with Vertu’s group efficiency evaluating favourably with the UK market that grew 8% over the identical interval.

Like-for-like new car margins have remained robust at 7.9% (8.0% final yr) regardless of the upper Motability combine which is at a decrease margin. 

Used automobile worth stability anticipated to stay

The UK used car market stays resilient, whereas continued stability of used car costs is exhibited.

Vertu’s common used car promoting worth per unit grew by 3.4% on a like-for-like foundation to over £21,000.

Like-for-like gross revenue per used unit offered was secure at £1,648 (£1,652 final yr).  Gross margin was 7.8% (8.1% final yr), reflecting continued greater promoting costs.

Fleet and business car like-for-like volumes noticed slight development of 1.0%, with Vertu selecting to deal with worthwhile fleet gross sales channels, quite than the excessive development, however low margin rental phase.

Providers revenues elevated by 4% on a like-for-like foundation for a similar interval in comparison with prior yr.

Whereas gross revenue will increase had been seen in all aftersales channels on a like-for-like foundation, gross margins for aftersales declines “as anticipated” resulting from greater technician wage prices.

Vertu stated technician capability stays “a continued constraint on income development” in service with new coaching and recruitment initiatives being deliberate to assist deal with this concern.

Robert Forrester, Vertu Motors chief government, stated: “I’m happy to report that buying and selling stays optimistic.

“Your entire, just lately enlarged, Vertu staff has put in arduous work and dedication as soon as once more, and I wish to thank all of them.  Used automobile pricing has remained agency and now we have gained market share within the new automobile market.  The efficiency of our excessive margin aftersales enterprise has remained robust.

“The mixing of Helston Garages is progressing properly and is on observe to ship the deliberate synergies.  We’re excited concerning the alternatives our enlarged portfolio will create for Vertu Motors.”