UK dealer group Vertu Motors today released its financial results for the year ending 28 February 2025.
The Group’s profits were down from £34.8m to £29.3m. However, this has been attributed to new car.
Robert Forrester, CEO of Vertu Motors, said: “Our profitability in used cars and aftersales went forward quite substantially but the market, due to the impact of the ZEV Mandate on the new retail market, was a very serious headwind for the Group and the sector. The new car market was the lowest in 2024 for 25 years.
“The industry sold less new retail cars than in the Covid year of 2020 when we were closed. The discounting levels to push battery electric vehicles to try and avoid the fines and get to the target was just something the industry has never actually seen before because we have never seen government intervention like this.
“This year, the 28% target will be missed as there is very little chance of getting to that number. In fact, none I would say because the industry is running at 20% to 21%.”
This year, in March and April the new retail market has expanded. Forrester said Vertu had ‘beaten’ the market in both the financial year and in March and April.
He said: “In terms of the new retail market in the financial year to February, we substantially took market share so our sales did not actually drop as much as the market. In terms of BEVs, we had a very very strong performance.
“Private sales of BEVs in the UK nationally went up 12.9%, we were actually up 83%. We had Hereford Volkswagen and York MINI as top performers in their franchise for BEV sales.”
Vertu outperformed in the new retail market and the used market saw margin expansion while Group aftersales is improving with strategies around retention and increasing average invoice value.
In addition, Vertu was quick to react to the Budget which imposed additional costs in national minimum wage and in national insurance. The Group evaluated its programme to look at its cost base and take cost out to ‘more than’ offset the Budget increase to ensure sustainable profitability going forward.
“The Group is in a very strong financial position. It is very stable, all three of us executive directors have been with the Group 19 years. It is quite an exciting position,” concluded Forrester.
Looking to the future, Forrester also discussed the ZEV Mandate updates announced in April as well as the positioning of Chinese brands in the UK market.