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results

Annual results for the year ended
28 February 2023
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Strategic highlights

1

Successful and meaningful scale growth, with an increase of 31 sales outlets in the financial year and the planned integration progressing well. The Group has continued to build strong relationships with its chosen manufacturer partners due to operational delivery and a strong, mutual respect.

2

Delivery of operational excellence and digitalisation including further development of the Group's in-house analytics systems, a new 'Vertu Insights' used vehicle stock management tool and investment in self-service check-in technology.

3

Continued application of stringent capital allocation disciplines:

  • Acquisitions targeting returns above cost of capital have been delivered and a continued multi-franchising strategy to maximise the profit opportunity in certain physical locations and to align with Manufacturer representation plans
  • Annual dividend increased by 26.5% reflecting the continued strong free cash generation. The Group has also returned £5.9m to shareholders through the repurchase of over 10.0m shares in the Year

Vertu results, reports and presentations

Date Title Results Reports Presentation Webcast
28th February 2023 Annual Results 2023 View results View View presentation Watch webcast
31st August 2022 Interim Results 2022 View results View View presentation Watch webcast
28th February 2022 Annual Results 2022 View results View View presentation Watch webcast
31st August 2021 Interim Results 2021 View results View View presentation Watch webcast
28th February 2021 Annual Results 2021 View results View View presentation Watch webcast
31st August 2020 Interim Results 2020 View results View View presentation Watch webcast
29th February 2020 Annual Results 2020 View results View View presentation Watch webcast
31st August 2019 Interim Results 2019 View results View View presentation Watch webcast
28th February 2019 Annual Results 2019 View results View View presentation Watch webcast
31st August 2018 Interim Results 2018 View results View View presentation Watch webcast
28th February 2018 Annual Results 2018 View results View View presentation Watch webcast

Annual Results for the year ended 28 February 2023

Interview with Robert commenting on the results

Interview with Robert commenting on the results

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Analyst interview with Mike Allen, Head of Research, Zeus Capital

Analyst interview with Mike Allen, Head of Research, Zeus Capital

Watch the video

Highlights

  • Adjusted[1] profit before tax of £39.3m (FY22: £80.7m), on record revenues of £4.0bn. Profit slightly ahead of market expectations
  • Acquisitions successfully integrated onto Group systems and processes and on track to deliver expected synergies and earnings enhancement
  • Group portfolio grown by 31 sales outlets during the Year, including 27 from Helston and 2 from BMW Motorrad acquisitions, contributing to scale benefit opportunities
  • Free Cash Flow of £54.3m in the Year (FY22: £44.4m) reflecting excellent working capital management
  • Net debt[2] of £75.3m as at 28 February 2023, significantly ahead of market expectations (FY22: Net cash: £16.2m)
  • Expanded debt facilities agreed in December 2022, including a new £74.8m 20-year mortgage, an upsized revolving credit facility of £93m with a third bank added to syndicate, and an increased used vehicle stocking facility to £70m (from £35m)
  • Net tangible assets per share of 65.3p reflecting strong asset base
  • Final Dividend of 1.45p per share recommended, bringing full year dividend to 2.15p per share (FY22: 1.70p) an increase of 26.5%
  • £5.9m returned to shareholders via repurchase of 10.5m shares during the Year

[1] Adjusted to remove share-based payments charge, amortisation of intangible assets, impairment charges and exceptional acquisition costs
[2] Excludes lease liabilities, includes used vehicle stocking loans

Summary and Outlook

  • Trading performance in excess of last year delivered in key months of March and April aided by the contribution from acquisitions
  • Improvement in new vehicle supply evident with continued high Group order bank of high margin new vehicle orders in place
  • Used vehicle demand remains strong and continued used supply constraints underpin residual values. Vertu Insights rollout underway to help optimise used car gross margin
  • Aftersales revenues and profits remain highly resilient aided by retention products such as service plans and ageing of the vehicle parc
  • Cost pressures, reflecting continued high inflation remain evident with strategies in place to mitigate where possible
  • Active portfolio management strategy expected to deliver a further c.£9.5m of assets disposals in next 12 months, £3m above book value
  • Net debt expected to reduce through ongoing strong Free Cash Flow generation

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