Macklin Motors owner Vertu says margins holding up but market outlook 'unclear'

Vertu, the car dealership group operating under the Macklin Motors brand in Scotland, said margins were holding up amid continuing supply woes.

In a trading update to coincide with its annual shareholder meeting, the group warned that the market outlook remained “unclear due to uncertainty of consumer demand and vehicle supply”.

However, it anticipates that new vehicle supply will improve gradually in the months ahead.

Vertu is the fifth largest automotive retailer in the UK with a network of 160 sales outlets, including more than a dozen north of the Border.

In its update, the group noted: “Constrained supply of new vehicles in the UK has continued, due to dislocation in global supply chains and its impact on vehicle production. Consequently, margins in both the new retail and fleet channels have remained strong.

“The group has also seen supply constraints continue in used cars. This has had two effects.

“Firstly, combined with the comparative period reflecting post lockdown pent-up demand, it has resulted in the group seeing an expected significant decline in like-for-like used car volumes in May compared to the previous year.

“Secondly, the group has been able to maintain strong retention of gross profit on used cars, with per unit profit in May at above prior year levels, as used car prices stabilised.”

Robert Forrester is the chief executive of Vertu, which is the fifth largest automotive retailer in the UK with a network of 160 sales outlets, including more than a dozen north of the Border. Picture: Neil Denham

Vertu, which is led by chief executive Robert Forrester, said its “high-margin” aftersales departments had benefited from additional working days in May, which drove revenues above prior levels. It continues to make progress in its parts departments and accident repair centres.