The boss of North East-based motor dealership chain Vertu has welcomed Government moves to boost the sales of electric vehicles ahead of a key sales period.
The Gateshead company, which has one of the 海角视频’s largest car showroom networks, has released a trading update in which it said that its full-year profits would be in line with market expectations of around £27.2m.
Vertu’s chief executive Robert Forrester has previously been an outspoken critic of Government measures to drive sales of electric vehicles, including the Zero Emission Vehicle mandate. But the trading update welcomed recent moves to relax the mandate after pressure from the automotive industry, and to offer subsidies on many electric cars. Vertu said those “encouraging developments” were expected to improve new demand for new cars as it headed into the key September period.
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The company also highlighted the opening of three new BYD outlets, two of them in the North East, saying the Chinese manufacturer was likely to become more prominent in the 海角视频 in the future.
Mr Forrester said: “I am pleased with the group’s performance in the first half as we have navigated a subdued consumer backdrop and continued uncertainty in the new car market caused by the Government’s Zero Emissions Vehicle mandate.
“The board expects results for the full year to be in-line with expectations driven by a continued strong performance from our high margin aftersales business, and greater affordability in the new electric vehicle market with more sub £20,000 new EVs available and a series of Government grants to stimulate EV activity now in place. Encouragingly, the September new retail order book is slightly ahead of last year and likely to benefit from the new grants regime.
“Vertu benefits from a strong balance sheet with low gearing, stable leadership and motivated team such that when opportunities arise, we can allocate capital in a disciplined and flexible way to benefit our shareholders.”
Earlier this year the company said it would reduce its workforce and close most of its showrooms on Sundays to help meet increased costs from minimum wage and National Insurance rises. In today’s update, it said that it was continuing a strong focus on cost control and was investing more in solar panels to bring down its energy bills.
At the same time, Vertu announced it would spend £12m on a share buyback scheme for investors. A separate announcement this morning noted further purchases in that programme and the company said that since it began share buybacks in 2017, more than £41m had been returned to its shareholders.