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(Sharecast News) - Automotive retailer Vertu Motors said on Wednesday that it was "encouraged" by its start to FY26, particularly the growth of the new retail market in March.
Vertu said new car retail like-for-like volume growth came to 7.0%, with the group gaining market share against the UK retail market, which was up 5.6% in the three months ended 31 May. Fleet and commercial vehicle like-for-like sales volume was 3.0% higher.
On the other hand, used vehicle like-for-like volumes fell 3.8% in the quarter, reflecting tight supply in the used vehicle market and subdued consumer demand, while Vertu also continued to see weaker motability sales volumes, with like-for-like volumes down 23.2% in the period, reflecting shifts in market share away from the "traditionally dominant manufacturers" it represents.
Vertu also said high margin service revenues continued to show growth, with a 4.1% like-for-like increase in the quarter, as it benefited from initiatives to enhance revenues and vehicle parc ages. Improved gross profits were also delivered in the service and parts channels on a like-for-like basis, resulting in improved profits year-on-year.
Looking forward, Vertu said FY26 earnings were expected to be in line with current market expectations.
As of 0940 BST, Vertu shares were up 2.25% at 63.60p.
Reporting by Iain Gilbert at Sharecast.com
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