16 October 2024

• Group sites all rebranded Vertu
• Profits down but H1 results in line with expectations
• Vertu EV sales up 10% against retail EV market fall of 7%
  

  Robert Forrester, Vertu chief executive

Vertu will drop the historic Bristol Street and Macklin brands from its showrooms and websites over the next six months to bring everything under the main Vertu name.

The move to calling all sites, both physical and digital, is expected to have a significant impact with online search engine optimisation as well as reducing central costs.

Vertu has already been used as the branding for several of the groups franchises including Honda, Toyota and Mercedes.

After 100 years, Vertu is dropping the Bristol Street name

Vertu revealed the plan in its H1 results for March-August this year. The first half figures showed a reduction in profit that was in line with expectations. Pre-tax profits fell to £23.5 million on a £2.49 billion turnover against 2023’s H1 figures of £31.5m adjusted profit before tax and £2.42bn turnover.

Commenting on the results, Robert Forrester, chief executive, said: “I am pleased with the group’s first half performance against a fast-shifting market backdrop. Our high margin aftersales business delivered an excellent H1 performance, aided by higher technician numbers and execution of the group’s vehicle health check process.”

Forrester also used the half-year announcement to put pressure on the government to help retail EV buyers. Vertu revealed that while group retail EV registrations increased 10% in the six months to 31 August, SMMT data showed that retail EV registrations fell 7%.

“The retail new car market declined as the Government’s regulation to transition to battery electric vehicles introduced market volatility and negative effects in terms of affordability. We took considerable market share in the new retail market, and in the BEV market in particular, reflecting the Group’s adaptability and strong operational execution.

“The group’s strong balance sheet, excellent portfolio of brands, robust and scalable systems, and a strong and experienced leadership team with motivated colleagues puts us in a great position from which to deliver on our strategic goals. We are actively pursuing value accretive growth opportunities to enhance our portfolio, applying strict investment return metrics as well as returning cash to shareholders.”

HIGHLIGHTS

• Total Group revenue for the Period increased by 2.9% compared to H1 FY24.
• Group aftersales operations delivered a robust performance, delivering Core Group gross profit growth of £7.1m.
• Used vehicle like-for-like volume growth of 3.9% and gross margin increased to 7.3%.
• Group new retail vehicle sales volumes down 5.9% in the Period with significant market share gains as UK market saw an 11.2% decline.
• BEV new retail sales volumes in UK fell in the Period by 7.0%, however, Group grew retail BEV sales volumes by 10.9% as the Group focused on this critical channel.
• Key steps taken to grow the Group’s partnerships with Chinese Manufacturers.
• H1 profits lower than prior year levels as anticipated as costs increased due to cost inflation and increased headcount to drive activity.
• The Group’s balance sheet remains strong with gearing levels below target, gearing³ ratio of 23.1%.
• Tangible net asset per share increased to 73.7p (H1 FY24: 70.9p).
• 3.3m shares (representing 1.0% of share capital in issue on 1 March 2024) repurchased at a cost of £2.4m since 1 March 2024: buyback continues with a further £3m programme in addition to £0.6m remaining of the existing authority.
• Increased interim dividend of 0.90p per share declared, payable in January 2025.

Tags: Bristol Street, Macklin, Robert Forrester, Vertu