Vertu chief executive Robert Forrester has hailed an 鈥渙utstanding鈥 year for the motor retailer against the backdrop of the pandemic, after it posted rising operating profits despite seeing a 21% fall in sales.
The Team Valley firm, which now has a network of 149 sales and aftersales outlets across the 海角视频, published full year results for the year ended February 28 which showed adjusted operating profit of 拢33.8m, up from 拢32.2m. Adjusted pre-tax profit came in at 拢24.6m, a rise on last year鈥檚 拢23m and ahead of analysts鈥 forecasts.
Group revenues came in at 拢2.5bn, a like-for-like decline of 21.6% on last year鈥檚 拢3.1bn as a result of the Government imposed lockdowns.
During the year Mr Forrester said the group evolved considerably, growing its online retailing to add to its omni-channel selling strategy, while also adding to its network of outlets.
Since March 1 last year, the firm has added eight sales outlets to the group, including three new franchise partners to the portfolio - BMW, MINI and BMW Motorrad - and also increased the efficiency of its transaction processing, including use of robotic process automation
Despite lockdown restrictions which kept showrooms closed, Vertu also sold 38,446 new and used vehicles between January 1 and March 31 and, so far, the company said it has seen a strong start to new financial year, with trading profits at a record level in the two months to April.
As the firm has used Government support in the year, no final dividend is recommended - but the board says it is confident dividends can recommence next January, depending on the group鈥檚 financial performance.
For the full financial year, the firm received furlough grant receipts of 拢27.8m and business rates relief savings of 拢8.7m. The Government support offset substantial losses, particularly in the first lockdown. In April and May 2020, for example, the group reported a pre-tax loss of 拢20.1m after Government assistance.
The group said it does not intend to repay this Government support which arose due to the forced closure of its operations.
Mr Forrester said: 鈥淭hese results, which are ahead of expectations, are outstanding in the Covid interrupted circumstances. I am proud of the entire Vertu team for their adaptability and effort to deliver these remarkable results.
鈥淭he group has significantly evolved during the year, with accelerated delivery of its strategy in achieving enhanced online sales capability via its inhouse developed Click2Drive technology platform, reduced cost base due to productivity gains and significantly grown the number of sales outlets.
鈥淲e have started the new financial year very strongly, have generated record levels of cash and have a very strong balance sheet. We have now re-instated guidance. Brexit uncertainty is now behind us, and we are exceedingly well placed to benefit from the changes and opportunities which are ahead of us.鈥
Mr Forrester said the company鈥檚 technological advancements - all developed in the North East 鈥 have shown that Vertu can meet all manner of customer needs.
He said: 鈥淲e now have developed technology and working practices where we can be very flexible with customers in how they want to buy a car - a very, very small minority will want to buy a car with no physical interaction at all and just do an e-com transaction, but that鈥檚 very small numbers.
鈥淭he large majority want to work with us, do a lot of the work at home, look at a video at home, do plenty of phone calls, have a video call and maybe agree to buy the car there and then and have it delivered, but a lot of them still want to come into a dealership. So the technology we鈥檝e created, which we鈥檝e classed as Click2Drive platform, means we can be very flexible. That鈥檚 been the biggest change.
鈥淲e sold 38,000 cars when all our showrooms were closed and we weren鈥檛 able to do test drives - if you鈥檇 told me that this time last year I would鈥檝e been skeptical.鈥
Ahead of marking its 15th anniversary later this year, Mr Forrester also highlighted good growth in its North East divisions.
He said: 鈥淥ne of the things we鈥檝e done in the last 12 months is grow the North East business. We now employ over 1,300 people in the North East of England, there鈥檚 at least another 300 people there compared to this time last year. Out of 5,500-6,000 people it鈥檚 quite a staggering business now in the North East. We are the biggest motoring retailer in the North East.鈥
Shares had risen by 7.42% by lunchtime to 48.34p following the stock market announcement.
