Vertu's shares jump after positive half-year

18th Oct 2010 13:35

Shares in Vertu Motors jumped 13% as interim profits soared, the group resumed dividends and it forecast it would beat expectations for this year.Vertu, the eighth largest UK motor retailer, lifted revenues by 27% from £401m to £511m in the half-year to August, reflecting the substantial expansion of the business over the last 12 months.Pre-tax profit surged 73% to £4.9m from £2.8m due to the improved profitability of dealerships acquired in the previous financial year. Last year's acquired dealerships contributed £1.5m to pre-tax profit, while current year acquisitions lost £0.3m, largely due to seasonality.Vertu's latest acquisition came last month, when it purchased two car dealerships in Cheshire for £3.9m, taking the number of its outlets to 74.Despite the end of the government's scrappage scheme, which provided a major stimulus for the group, consumer demand exhibited by non-scrappage new car sales has been higher year on year.September is plate change month, important for private new car sales, and key to the group's trading performance in the second half. Current trading performance has surpassed the board's expectations with increasing consumer demand."With the outperformance of market expectations by the group in the first half and a strong financial result in September, the group is currently trading ahead of market expectations for the full financial year," it added.There is a maiden interim dividend of 0.2p.