Vertu results, reports and presentations
| Date | Title | Results | Reports | Presentation | Webcast |
|---|---|---|---|---|---|
| 28th February 2025 | Annual Results 2025 | View results | View | Download | Watch webcast |
Annual results for the year ended 28 February 2025
Robert Forrester interview on the results
Watch the video
Highlights
- Adjusted1 profit before tax of £29.3m (FY24: £34.7m), in line with current market expectations. Profits reduced year-on-year due to a weak new car retail market in the UK and pressures arising from the Government Zero Emission Vehicle (‘ZEV’) mandate. The Group outperformed the UK new retail market gaining market share including Battery Electric Vehicle (‘BEV’) retail sales.
- £10m annualised additional cost from April 2025, arising from Autumn Budget, fully offset by cost reduction actions completed during the Year.
- Aftersales delivered a strong performance, with like-for-like revenue up 5.8% and gross profit up £12.3m in the Core Group compared to FY24.
- Used gross margin grew to 7.1% (FY24: 6.8%) in the Core Group, with margin expansion below expectations due to reduced consumer confidence.
- Significant £45.8m cash inflow from working capital delivered in second half, driving strong year-end cash position.
- Active portfolio management with disposal of £5.6m of non-core assets at aggregate £1.1m premium to book value and addition of new Chinese OEM outlets.
- Net debt2 of £66.6m as at 28 February 2025, lower than market expectations (FY24: Net debt: £54.0m).
- Final Dividend of 1.15p per share recommended, bringing full year dividend to 2.05p per share (FY24: 2.35p).
- Net tangible assets per share of 72.9p (FY24: 70.5p).
- £4.8m returned to shareholders via repurchase of 7.5m shares during the Year.
1 Adjusted to remove non-underlying items (share-based payments charges and amortisation have been included in underlying items and parts revenues on vehicle preparation excluded from external revenues in both years).
2 Excludes lease liabilities, includes used vehicle stocking loans
Current Trading and Outlook
- March and April saw a significant increase in the UK new retail car market as Manufacturers rebalanced fleet and retail mix. The Group performed well, generating significantly more new car profit in the period than the prior year.
- Other aspects of the business also performed well with a high degree of operational delivery. Overall profits in March and April were ahead of prior year levels and this gives the Board confidence for the year ahead.
- The Group has undertaken a significant number of start-ups and acquisitions in recent periods which are on track to start to contribute in FY26.
- There remains considerable economic uncertainty in the UK, and the automotive sector generally, from the Government’s ZEV mandate, the economic impact of the Budget and the impact on Manufacturer Partners of the recent US tariffs on US auto imports.
- The Group is well positioned with stable management and a very strong balance sheet with low gearing to take advantage of opportunities as they arise.
- A £12m share buyback programme was announced in February 2025 and to 30 April 2025, £2.2m of this programme has been utilised in the purchase of 4.2m shares, leaving £9.8m to deploy. These purchases will increase earnings per share and the Board remain committed to an ongoing buyback programme.
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