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(Sharecast News) - Vertu Motors said on Wednesday that full-year results were set to be ahead of market expectations thanks to portfolio changes and as it continues to trade positively, with like-for-like volume growth in all channels.
Consensus expectations are for FY27 adjusted pre-tax profit of 24.5m, with a range of 23.5m to 25.1m.
In an update for the three months to the end of May, the company said the aftersales segment is contributing to growth in group profits year-on-year. Group margins remain stable and overall trading performance remains ahead of prior year levels.
Vertu said it continues to review and transform its portfolio of operations. It will launch its first Omoda and Jaecoo dealership on 1 July, providing exposure to "two of the fastest-growing automotive brands in the UK market".
Vertu said the opening, in an existing group site in Burton, demonstrates its ability to reposition existing assets to support "attractive growth opportunities". Another group outlet will be re-franchised to Omoda and Jaecoo on 1 October.
Following these openings, Vertu will have 15 sales outlets representing Chinese automotive brands.
The company also said that cost benefits will arise from portfolio changes, such as the relocation in the coming months of Sheffield Mazda from a standalone site to a multi-franchise operation alongside the Nissan franchise in the city.
Chief executive Robert Forrester said: "The group has made an encouraging start to FY27 with full year results now expected to be ahead of market expectations, supported by growth across all key revenue channels and continued momentum in our high margin aftersales operations.
"While we remain mindful of wider consumer pressures and the ongoing impact of the Zero Emission Mandate, we are confident in the resilience of the business and our ability to capture growth opportunities, including through the launch of our first Omoda and Jaecoo dealership in Burton."
At 1038 BST, the shares were up 2.8% at 75.04p.
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