Motor dealer Vertu Motors (LON: VTU) had a record first half despite supply problems for new vehicles. The flipside of this was higher margins for used cars. Following the interims, this year’s pre-tax profit forecast has been upgraded by 19%.
Used car prices are rising because of limited stock availability. Vertu Motors successfully obtained stock to take advantage. Central purchasing helped in getting hold of suitable vehicles and gross profit doubled.
New car sales did rise, but that was compared with a weak period, and they are well down on two years ago. Management says that customers are accepting long lead times. Fleet vehicle sales were lower, but the profit is better. Aftersales revenues grew, but not as quickly as the other parts of the business.
The accident repair and...