SHARES in Vertu Motors accelerated yesterday after it said an improving car market had bolstered sales at its fast-expanding portfolio of dealerships.
The group, which trades under the Macklin Motors brand in Scotland, saw revenue rise by 14.8 per cent to £628.1 million in the six months to 31 August, driving pre-tax profits up 26.8 per cent to £5.2m and prompting the firm to say it should beat market expectations for the full year. The shares closed up 8.6 per cent at 38p.
The firm was launched as a cash shell six years ago and has built itself into one of the UK’s biggest motor retailers by buying up smaller dealership chains.
Chief executive Robert Forrester said the outlets the firm bought in 2010 and 2011 were building “profit momentum” as they became integrated into the larger business.
“The UK economy is clearly in a much better state than it was a year ago,” he said. “Also, the used-car market has been very strong. There’s a shortage of vehicles at the moment, so values are holding up very well.”
He said the eight Scottish dealerships were performing in line with the rest of the group and Vertu would seek to add to the Macklin chain.
Vertu hiked its interim dividend by 25 per cent to 0.25p, although Forrester stressed it was in part to bring the half-year payment into line with the final dividend.
