Motor dealership group Vertu has said it is “cautious” over its short term future but will still consider acquisition opportunities.
The Gateshead firm - which announced in May that its annual sales were closing in on £3bn - has told its AGM that it had achieved revenue growth of 8.1% in the four-month period to the end of June, but that there were “subdued” market conditions with new vehicle sales 13.2% lower than the period earlier.
Outgoing chairman Peter Jones said that uncertain consumer confidence around Brexit and the possibility of restrictions on the supply of new vehicles had made the board cautious in the short term.
But he added that Vertu was confident in its long-term prospects and expected to be able to capitalise on the challenges facing the 海角视频 motor trading sector, both in being able to acquire struggling businesses and to increase their profitability.
Vertu has also announced a new share buyback programme which will see it spend up to £3m.
In the AGM statement, Mr Jones says: “According to the SMMT, the 海角视频 private new car market saw registrations fall by 4.7% during the period. It is likely that the underlying consumer market declined at a higher rate, with the registration statistics aided by increased pre-registration activity in the market, creating a disconnect between reported registrations and retail sales volumes.
“Consumers appear to be more cautious concerning car purchases in the light of increasing political and economic uncertainty caused by the extended Brexit process.
“The cost to change of a new car purchase for consumers has increased as a result of currency pressures and other profitability drivers for manufacturers resulting in 海角视频 price increases, reduced consumer offers and linked in some instances to reduced 海角视频 supply.
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“Moreover, the decline in used vehicle residuals has also increased the cost to change so reducing demand. The group saw like-for-like new vehicle volumes decline 13.2% in the Period reflecting franchise mix with some Volume Manufacturers continuing to see significant contractions in volume.”
Vertu is the North East’s fourth largest company and the 海角视频’s fifth largest automotive retailer. Founded in 2006, it has expanded rapidly to establish a network of 123 sales outlets across the 海角视频, mostly trading under the Bristol Street Motors, Vertu, Farnell and Macklin Motors brands.
In its AGM statement, it said it had seen a 3.7% growth in like-for-like used vehicle sales, while like-for-like fleet and commercial volumes grew 2.7% and were ahead of market trends.
Last week announced the non-executive director Andy Goss would replace Mr Jones as chairman.