Vertu Motors Forecasts Higher Profit as Sales, Shares Surge in UK Market
Vertu Motors Reports Strong Financial Performance and Market Expansion
Aug 27 (Reuters) - Vertu Motors said on Thursday its annual profit would come in ahead of market expectations as strong demand and increased exposure to Chinese brands lifted sales.
Shares of the company, which operates out of 194 sales outlets across the UK, jumped as much as 6.7% to their highest level in more than 19 years.
Key Financial Highlights
Here are some more details:
Profit and Revenue Growth
• Vertu projected fiscal 2027 adjusted pretax profit above analysts' expectations of £25.5 million ($34.66 million), according to company-compiled data. Revenue rose 4.6% in the five months to July 31.
Expansion into Chinese Brands
• The company is rapidly expanding its exposure to Chinese carmakers. It launched its first Omoda and Jaecoo and Leapmotor outlets over the past two months.
Current and Future Plans for Chinese Brand Outlets
• The company now operates 18 sales outlets representing Chinese brands, including BYD and MG, and said it plans to expand that further in the coming months.
Operational Adjustments
• Vertu had closed a loss-making Mazda outlet in York last month and combined its Sheffield Mazda operation with Nissan in a bid to cut costs.
Market Context and Industry Trends
UK New Car Sales and Electric Vehicle Growth
• British new car sales rose last month, marking their best performance since 2019 as battery electric vehicle (BEV) sales reached another record, industry data showed. Chinese brands account for a growing share of new car sales.
Risks and Cautious Outlook
• The company had struck a cautious tone in May, warning that the Iran war, the UK's electric-vehicle sales targets, and Jaguar Land Rover-related disruption could hit prices and demand.
($1 = 0.7357 pounds)
(Reporting by Amna Mariyam in Bengaluru; Editing by Devika Syamnath)
