No recommendation
No news or research item is a personal recommendation to deal. Hargreaves Lansdown may not share ShareCast's (powered by Digital Look) views.
(Sharecast News) - Vertu Motors said on Thursday that full-year profit was set to be in line with market expectations despite a still-challenging new car market, as it announced a £12m share buyback programme.
In an update for the five months to 31 January, the automotive retailer said the new car market remains challenging as the Zero Emission Vehicle (ZEV) mandate impacts manufacturers and retailers.
Group revenues rose 3.3% during the period, or 2.2% on a like-for-like basis.
Vertu said its new vehicle like-for-like order-take for the important plate change month of March was "tracking well", in line with prior year levels. It also said its performance in the used car segment was solid, with LFL volume growth of 2.8% during the period, at slightly reduced margins. LFL volume growth in the new vehicle segment was a more subdued 0.8%.
Vertu said its Jaguar Land Rover business has returned to normal operations following the cyber-attack on JLR last September. "The financial impact of the cyber-attack has been below what was originally anticipated, with an insurance claim progressing," it said.
The group said full-year 26 adjusted pre-tax profit would be in line with market expectations of £21.6m. It also announced the launch of a new £12m share buyback.
Chief executive Robert Forrester said: ''We are pleased with the team's performance as we control the controllables against a challenging market backdrop in the new vehicle segment in large part due to the Government's ZEV mandate. Used vehicle sales were robust despite consumer uncertainty impacting retail demand. Our resilient aftersales business continues to thrive aided by higher technician numbers. The work that has gone into cost control, property disposals and optimising stock levels has contributed to an excellent cash performance.
"Despite the impact of the complex market dynamics on the short-term performance of the business, the sector presents opportunities for Vertu given our strong balance sheet, excellent Manufacturer partnerships and reputation, robust and scalable systems, and a great team."
At 1228 GMT, the shares were down 2.5% at 58.20p.
The value of investments can go down in value as well as up, so you could get back less than you invest. It is therefore important that you understand the risks and commitments. This website is not personal advice based on your circumstances. So you can make informed decisions for yourself we aim to provide you with the best information, best service and best prices. If you are unsure about the suitability of an investment please contact us for advice.