Car dealership making a Vertu of weak euro

CAR dealership Vertu Motors said the UK’s new car retail market has returned to growth this year as European manufacturers target British buyers because of the weak euro.

The Aim-quoted group, which operates as Macklin Motors in Scotland, said trading in March and April was “significantly ahead of prior year and budget levels”.

Chief executive Robert Forrester said the declining strength of the euro against the pound meant European manufacturers’ margins had effectively increased in recent weeks, giving them more scope for promotional activities. He added that the British consumer “loves an offer”. He was speaking after Vertu, which launched as a cash shell in December 2006, revealed that its continuing expansion helped revenues and profits grow last year despite a subdued market. Revenues rose by 8.9 per cent to £1.1 billion in the year to the end of February, while profit before tax was up 3.8 per cent to £5.5 million. On a like-for-like basis, the firm sold 3.5 per cent fewer new cars and 1.8 per cent fewer used cars to retail customers, but its commercial sales were 4 per cent higher.

Forrester said the Scottish operation was boosted by a marketing campaign surrounding the Nissan leaf electric car, which invited people to test drive it and helped bring people into showrooms.