A message from Robert Forrester, CEO of Vertu Motors plc.

Continued growth in all areas

Strong aftersales performance drives record revenues and profits

Download our 2016 annual report and financial statement here: PDF

Download our 2016 preliminary results here: PDF

Annual Report & Accounts for the year ended 29 February 2016

Robert Forrester interview on latest results
Interview with Robert Forrester, Chief Executive commenting on the results.
Analyst interview with Mike Allen from Zeus Capital
Analyst interview with Mike Allen from Zeus Capital
Annual Report 2016
Download the 2016 Annual Report.

Number of Retailers

Continued growth in all areas of the business delivering record revenues and profits

  • Adjusted* profit before tax up 24.5% to £27.4m
  • Record profit before tax rose 23.8% to £26.0m from £21m
  • Revenue up 16.8% to £2.42bn
  • Very strong cash generated from operations of £65.8m from £26.1m
  • Earnings per share up 24.4% to 6.06p from 4.87p
  • Adjusted* operating profit up 26%
  • Adjusted* earnings per share growth of 25.4%
  • Period end net cash of 23.1m from 15.7m
  • Final dividend up 21.4% to 0.85p per share from 0.70p per share: to be paid in July 2016

* adjusted for amortisation of intangible assets and share based payments charge.



£2.42bn 2016
£2.07bn 2015

Adjusted Profit Before Tax

£27.4m 2016
£22.0m 2015

Basic Earnings Per Share

6.06p 2016
4.87p 2015

Total Units Sold

158,050 2016
140,815 2015

Operational Highlights

  • Fourth consecutive year of growth in revenues and profits
  • Like-for-like service revenues rose 6.5%: sixth consecutive year of growth with 90,000 live service plans in place
  • Continued improvement in aftersales performance - gross margins increased to 44.8% (2015: 43.5%)
  • New retail vehicle like-for-like volume growth of 4.0%
  • Used vehicle like-for-like volume growth of 8.0%
  • Over 70,000 used vehicles sold during the year for the first time: total volume growth up 13.0%
  • Stable overall gross margins despite increasing vehicle sales mix, showing underlying business improvements
  • Significant recruitment into operational management team to support future growth

Current Trading and Outlook

  • The Group has traded ahead of the current year financial plan and the prior year in March and April 2016 (“the post year-end period”).
  • In the post year-end period, aftersales margins rose from 45.2% to 46.7% with like-for-like revenue increases. Service like-for-like revenues rose 7.0% and continued to benefit from the successful customer retention initiatives being executed by the Group.
  • The post year-end period includes March, which remains the most significant month for the profitability of UK automotive retail.
  • The Group’s like-for-like used vehicle retail volumes were up 5.9% in the post year-end period continuing the sustained, long term growth in performance.
  • Given trading in March and April 2016 and the encouraging improvements we are seeing in the acquired businesses, the Board remains confident about the Group’s prospects for the current year.
  • Group service revenues have continued to grow 7.2% on a like-for-like basis in March and April
  • Seeing consistent profit growth from improving recently acquired dealerships

Group well positioned for further growth

  • Current trading ahead of prior year with strong operational management team in place
  • Strong aftersales dimension with growing resilience due to focus on retention strategies
  • Portfolio contains dealerships with significant potential to enhance margins
  • Increasing number of premium franchise outlets providing diversification benefits higher profiability
  • Group marketing initiatives driving market share improvements: new Chief Marketing Officer started 1 March 2016; further transactions in progress
  • Strong property-backed balance sheet with conservative debt appetite
  • Capital raised via placing being swiftly deployed as anticipated: Leeds Jaguar acquisition 2 May 2016; further transactions in progress
  • Plans to refinance borrowing facilities on a long-term basis being progressed
  • Board's confidence in future prospects reflected in 23.8% increase in full year dividend

Results Past and Present

Enter your email address for regular updates about Vertu

By asking to receive emails from Vertu Motors plc you agree that we may use your email address to send you notifications when we publish a shareholder announcement on our website. We may also send you other news stories about Vertu Motors from time to time. You can unsubscribe at any time by following the link on the emails. We will not use your email for any other purpose.

Invest in Vertu
Careers at Vertu