August 2024 Company Results

Highlights

• Total Group revenue for the Period increased by 2.9% compared to H1 FY24.
• Group aftersales operations delivered a robust performance, delivering Core Group gross profit growth of £7.1m.
• Used vehicle like-for-like volume growth of 3.9% and gross margin increased to 7.3%.
• Group new retail vehicle sales volumes down 5.9% in the Period with significant market share gains as UK market saw an 11.2% decline.
• BEV new retail sales volumes in UK fell in the Period by 7.0%, however, Group grew retail BEV sales volumes by 10.9% as the Group focused on this critical channel.
• Key steps taken to grow the Group’s partnerships with Chinese Manufacturers.
• H1 profits lower than prior year levels as anticipated as costs increased due to cost inflation and increased headcount to drive activity.
• The Group’s balance sheet remains strong with gearing levels below target, gearing ¹ ratio of 23.1%.
• Tangible net asset per share increased to 73.7p (H1 FY24: 70.9p).
• 3.3m shares (representing 1.0% of share capital in issue on 1 March 2024) repurchased at a cost of £2.4m since 1 March 2024: buyback continues with a further £3m programme in addition to £0.6m remaining of the existing authority.
• Increased interim dividend of 0.90p per share declared, payable in January 2025.

¹ Net debt (excluding lease liabilities) / Shareholders funds

Current Trading and Outlook

• Group September trading performance in line with prior year levels. The Board anticipates that full year profits will be in line with current market expectations.
• Key plate change month of September saw like-for-like new retail sales volumes up 5.2% with retail market down 1.8% continuing strong market outperformance.
• Group like-for-like retail BEV sales volumes more than doubled year-on-year in September against a broadly static UK market.
• Profitability in H2 is expected to improve over prior year levels due to a stronger used car market and enhanced used vehicle trade values.
• Inflationary cost pressures remain in salaries and wages and the Group continues to focus on cost and efficiency.
• All UK retail outlets will trade under the Vertu brand by the end of April 2025. A single UK brand will enhance marketing ROI and deliver cost savings.
• Significant progress continues to be made in disposing of surplus properties generating cash and profits.