Vertu Motors (AIM:VTU) said full-year results will come in ahead of market expectations, citing strong trading across new and used vehicles and rising fleet market share.
The UK's fourth-largest automotive retailer, which operates 194 sales and aftersales outlets, made the update ahead of the close of its financial half year on 31 August.
Analyst consensus for FY27 adjusted pre-tax profit stood at £25.5m as of 26 August, with estimates ranging from £24.5m to £26.1m, according to data compiled by three sell-side analysts.
In the five months to 31 July, aftersales revenue rose and contributed to year-on-year profit growth, while used vehicle sales benefited from the group's "Value Cars by Vertu" strategy launched in April. Group gross margins held stable and operating expenses remained under control.
"Order-take levels for the important September plate change month give the Board confidence that results for the full year will be ahead of market expectations," said chief executive Robert Forrester.
Net debt is expected to be between £74m and £77m at the end of August, down from £78.3m a year earlier, excluding IFRS 16 lease liabilities. The group has bought back 2.4m shares for £1.7m so far this financial year, with £10.3m remaining under its £12m buyback announced in March.
Vertu opened its first Omoda and Jaecoo outlets in Burton on 1 July and its first Leapmotor outlets this month in Harrogate and Crewe, part of a wider push into Chinese automotive brands. It closed a loss-making Mazda outlet in York, and expects full-year capital expenditure to rise by £2m due to portfolio changes.
Interim results are due on 14 October.
News Intelligence what this means for the company
Vertu Motors pre-announced FY27 results ahead of consensus, driven by strong new and used vehicle sales, rising aftersales revenue, and controlled costs in the five months to 31 July. The company's confidence rests on September plate-change order intake; if realised, full-year adjusted pre-tax profit will exceed the £25.5m consensus range (£24.5m–£26.1m), marking an acceleration from £24.5m adjusted PBT in FY26.
The upgrade signals operational momentum across the dealership network and validates the "Value Cars by Vertu" used-vehicle strategy launched in April. Net debt is tracking lower (£74–77m vs £78.3m a year prior), and the company is returning capital via buybacks while investing £2m more in capex for Chinese brand expansion, suggesting management confidence in cash generation and portfolio diversification.
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