Vertu report rise in private car sales 03 | 09 | 2010

    VERTU MOTORS, which has recently expanded its operation in Scotland with the purchase of Ford and Mazda sites in Glasgow and Hamilton — has reported a rise in private new car sales volumes by 6.7% on a like-for-like basis.

    The significant growth, identified in the group’s half year trading update, was a result of the Gateshead-based company's overall private new car sales rising by 35.2% overall; Vertu put this down to taking on more sales outlets over the last year.

    And the group's board, led by CEO Robert Forrester, said it was confident it would “significantly outperform” the retail market since scrappage sales were disproportionately concentrated in franchises in which Vertu doesn’t have strong representation with.

    The company's used car volumes increased by 5.2% on a like-for-like basis over the period. It also highlighted that in recent months used car margins had softened with industry valuation guides indicating monthly falls of approximately 4% since May on cars less than four years old.

    “Prior year comparatives of values and margins were at a high point reflecting constraints in the supply of used cars and as a consequence overall used car profitability is, as expected, behind last year’s levels during the period,” the Vertu board said.

    The company is still looking out for businesses to buy and expects to conclude a number of new acquisitions in the coming months with no goodwill payable. The dealer group’s half year results will be revealed on October 20.

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