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(Sharecast News) - Automotive retailer Vertu Motors lifted its full-year profit expectations again on Wednesday following a strong first half.
In the six months to the end of August, adjusted pre-tax profit rose 19% to £23.8m on record revenue of £2.6bn, up from £2.5bn in the same period a year earlier, with like-for-like revenue growth of 4.3%.
Vertu said gross profit growth was delivered across every channel, "while maintaining firm control of costs despite ongoing inflationary pressures".
It now expects results for the year ending 28 February 2027 to be ahead of current expectations for adjusted pre-tax profit of £26.5m, with a range of £25.5m to £27.1m. This marked Vertu's third upgrade to profit expectations since the start of the financial year.
Vertu also hailed a strong start to the second half across all areas of the business, with profit above prior-year levels once adjusted for the impact of the JLR cyberattack.
Chief executive Robert Forrester said: "The new car market is showing robust growth with retail sales rebalancing against fleet which aids retailer profits. A focus on execution is delivering tangible benefits. Value Cars by Vertu growing older used car sales is broadening the group's used vehicle proposition. Investment in digital tools and operational discipline are improving productivity and customer conversion. The group continues to reshape its portfolio to capture attractive growth opportunities, including automotive brands from China. We now have 20 Chinese automotive outlets, with more on the way.
"The group has a strong balance sheet and generated substantial amounts of cash; we have a resilient and diversified business model and clear strategic priorities. The board will continue to invest selectively for growth, return capital to shareholders and focus on delivering sustainable long-term value."
At 1020 BST, the shares were up 2.7% at 83.40p.
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