Vertu drives up profit almost 50%

14th Oct 2009 08:35

Motor retail group Vertu reported a 47.4% surge in half year pre-tax profit as the £100m extension of the government's scrappage programme revved up demand for new cars.Profit before tax rose to £2.8m for the six months ended 31 August 2009 from £1.9m the year before. Revenue fell to £401.3m from £423.5m reflecting lower used car transaction prices and the subdued new car market.Overall however the trading performance in the half year and September has been ahead of board's expectations, Vertu said in today's company statement.Commenting on the results, chief executive Robert Forrester said, "Following the very challenging market conditions of the 2009 financial year, this financial period has been much improved, aided by the introduction of the highly successful scrappage scheme and rising used car values."Vertu added it is looking to buy more dealerships after it raised £30m from a placing in June."The group has acquired nine new sales outlets in the year to date and we would anticipate further expansion in the coming months to consolidate our position in the market."