Vertu profits hit fails to dent expansion

CAR dealership chain Vertu continued its aggressive expansion, despite the squeeze on consumers eating into its profits in the six months to September.

The firm, which trades under the Macklin Motors brand north of the Border, said yesterday that it had won a bigger chunk of the UK new-car market over the half year as it opened seven new outlets, including a Nissan showroom in Glasgow.

Chief executive Robert Forrester said sales at the Aim-listed group had also outperformed the sector, helping it to grow its share of the retail car market by 37 per cent to 3 per cent of the UK total.

He said the 16 per cent fall in pre-tax profits to £4.1 million had been anticipated, as the company’s new sites would take time to become profitable.

“The strategy of the group is to grow,” he said. “We are in a strong position that – at a time when sector profitability is clearly under pressure – we can take advantage of that and buy more dealerships.”

Rival Pendragon, which owns the Evans Halshaw and Stratstone chains, also said yesterday that it had outperformed the declining new-car market, while its used car sales accelerated 18 per cent in the third quarter.

It added that aftersales remained its core area of profitability, but declined 2 per cent in the three months to September.