Vertu, the car dealership group that runs the Macklin Motors brand north of the Border, has warned that supply issues are likely to continue into early 2019 in the wake of last month’s slump in UK new car sales.
September’s 20.5 per cent year-on-year fall was caused by a variety of factors including changes to the way new vehicles are tested, with tougher emissions regulations ushered in by the European Union.
Releasing interim results, Vertu told investors: “September [was] impacted by EU-wide emissions regulations with some supply issues likely to continue into early 2019.”
It described demand as robust during the half-year, but cautioned that “political uncertainty in the UK may create consumer uncertainty and volatility for the remainder of the financial year”.
The group, which has a network of 125 sales and aftersales outlets across the UK, posted revenues of £1.56 billion for the six months to the end of August – a rise of 7.9 per cent. Adjusted profit before tax came int at £18.1m, down from £20.9m a year earlier.
Chief executive Robert Forrester said: “The group performed well in the first half against a backdrop of supply side issues in the new car market.
“The board is pleased to see further growth in aftersales revenues and to re-establish growth in used car volumes.”