Vertu Motors raises FY outlook following strong YTD trading
Car dealer Vertu Motors upgraded its full-year outlook on Thursday on the back of continued strong trading year-to-date.
Vertu Motors now anticipates that adjusted pre-tax profits for the six months ending 31 August will be no less than £40.0m, driven by "exceptional UK used car market conditions".
The AIM-listed firm stated used vehicle supply remained tight, particularly in the premium segment, but said it had been successful in maintaining inventory and sales volumes at higher levels than previously anticipated.
New vehicle supply constraints, due to semi-conductor shortages, had had no material impact on its trading performance to the end of June 2021.
Vertu did caution that uncertainty remained around the remainder of the financial year as a result of new vehicle supply levels and the possible impact of Covid-19.
Vertu said: "At this stage, despite the exceptional performance during the first half of the year, the board retains a cautious outlook but nevertheless now anticipates that the group's adjusted profit before tax for the current financial year ending 28 February 2022 will be in the range of £40.0m-45.0m (previously £28.0m-£32.0m).
"The board remains very confident in the prospects for the group, which is strategically well placed to capitalise on the changes and opportunities in the UK motor retail sector."
As of 0945 BST, Vertu shares were up 8.31% at 46.90p.