Vertu accelerates ahead of expectations
Motors group Vertu today said it is on target to beat market expectations at its upcoming annual results, despite an uncertain future as the scrappage scheme comes to an end.
The North East firm which has 59 dealerships across the country said its new car like-for-like volumes – buoyed by the scrappage scheme – rose 18.6% between September and January.
Commercial vehicle sales for the firm have remained under pressure as a result of the continued economic uncertainty in the UK with light and heavy commercial vehicle registrations falling 14.4% and 37.9% respectively in the September to January period.
The group saw a 14.0% fall in like-for-like fleet and commercial new vehicle volumes in the same period which is reflective of the significance of commercial vehicle sales within the group’s fleet volume.
Looking forward, the company said: “The outlook for the remainder of 2010 remains uncertain, particularly in the new car sales area.
“The ending of the scrappage programme, January’s rise in VAT, the introduction of the new car ‘showroom’ tax in April and continued strength in the Euro against Sterling all indicate that new car sales to private customers will decline over the remainder of the year.
“The fleet, used car and aftersales areas are likely to be more resilient in the coming period. The Group has the strategies and management in place to ensure costs are controlled and dealership performance is maximised in all revenue areas.”
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