Vertu Motors continues to trade in line with management expectations, it has reported in a trading update.
The Group also said that the integration of Helston Garages is on track.
In a trading update for the five months to 31 January, Vertu reported that revenue was up 9.4% on a like-for-like basis.
Used car volumes fell 4.4% year-on-on year as supply remained tight and gross margins normalised from 9.4% to 7.0%, with electric vehicle values declining.
New car sales volumes were down 5.4% on a like-for-like basis (vs. -1.5% total UK new retail), due to supply-side issues, but market share of new retail stayed broadly stable at 4.0%.
Reflecting guidance of £80m-£85m of FY23 net debt (ex. leases), Vertu has reduced its forecast by 19% from £105m to £85m, driven by stronger operational cash flow.
Based on improving supply and Aftersales performance, it has increased its FY23 revenue by 2.1% to £3.9bn but leaves PBT unchanged at £38.9m.
The Group is growing its footprint, with 37 sales outlets added to its portfolio since 1 December 2021, including 27 from Helston and 2 from BMW Motorrad acquisitions.
Robert Forrester, chief executive of Vertu Motors said: “I am pleased to report that trading remains in line with expectations against a complex macro backdrop. The entire Vertu team has put in hard work and dedication once again, and I would like to thank them all. Used car margins have normalised back towards historical levels as we had expected and there are tentative signs of improving new car supply. The performance of our service and repair business has been strong.
“We have been working at pace to integrate the recently acquired Helston Motors business and this is progressing well. We are excited about the opportunities our enlarged portfolio will create for Vertu Motors.”