Recent acquisitions and solid foundations bring 5th year of record rising profits for Vertu Motors
This week Vertu Motors announced their 5th year of profit in a row, hitting record profits in the auto industry. On May 10th, the business, which is currently the fifth largest car retailer in the UK, announced profits of £31.5 million in the year to February 28th, up from £27.4m in 2015, with a healthy profit before tax of 29.8m – a record for the car retail sector. And with revenue rising 16.5% coupled with year on year profits, the future is looking good for the acquisitive group.
Chief executive Robert Forrester said on Wednesday that Vertu Motor’s recent success lies in its commitment in the last few years “to grow a scaled and sustainable dealership business“, focusing on consolidating the UK auto retail industry via multiple acquisitions. And this growth coupled with an unused debt facility and strong used car performance, has all led to today’s record breaking profits.
The business has come a long way since it was established in 2006. In the last year alone, their franchise portfolio has grown considerably, including debuting with Mercedes-Benz in 2016 after acquiring Grenoaks sites in Reading, Slough and Ascot Greenoaks sites, and further key acquisitions including Toyota and Leeds Jaguar. It also increased its representation with Land Rover, Nissan and Skoda.
And with the one of the “strongest and most flexible balance sheets in the sector”, Vertu Motors look set for considerable further growth – and healthy profits – in the year to come.