Vertu profits hit fails to dent expansion
The firm, which trades under the Macklin Motors brand north of the Border, said yesterday that it had won a bigger chunk of the UK new-car market over the half year as it opened seven new outlets, including a Nissan showroom in Glasgow.
Chief executive Robert Forrester said sales at the Aim-listed group had also outperformed the sector, helping it to grow its share of the retail car market by 37 per cent to 3 per cent of the UK total.
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Hide AdHe said the 16 per cent fall in pre-tax profits to £4.1 million had been anticipated, as the company’s new sites would take time to become profitable.
“The strategy of the group is to grow,” he said. “We are in a strong position that – at a time when sector profitability is clearly under pressure – we can take advantage of that and buy more dealerships.”
Rival Pendragon, which owns the Evans Halshaw and Stratstone chains, also said yesterday that it had outperformed the declining new-car market, while its used car sales accelerated 18 per cent in the third quarter.
It added that aftersales remained its core area of profitability, but declined 2 per cent in the three months to September.