Vertu Motors sees FY better than market expectations

23rd Jul 2009 08:42

Motor retail group Vertu Motors expects full year profit to come in better than market forecasts after the Government's scrappage programme gave the depressed new car market a boost.Volumes of new car sales have, however, been constrained by a scarcity of new vehicle stocks, the group explained.Registrations for new commercial vehicles in the four months ended 30 June 2009 was down 43.9% on the prior year. The group added that although market volume growth remains constrained, amid the depressed new car market, margins have significantly improved year on year. Meanwhile used car profitability is significantly ahead of last year's levels in the period. Like-for-like used car volumes were up 7.1% in the four months ended 30 June 2009 compared to the previous year. "Given current trading levels, the group anticipates the results for the financial year will be ahead of current market expectations," said Vertu Motors.