UK's Vertu Motors H1 profit rises, sees strong FY27 

Overview

• UK automotive retailer's H1 revenue rose 3.4% yr/yr to record £2.60 bln

• Adjusted profit before tax up 19% yr/yr; adjusted EPS increased to 5.71p

Outlook

• Vertu Motors expects FY27 results to be above current expectations

• Company plans further cost efficiencies through technology adoption and energy saving systems

• Company remains cautious on consumer demand due to inflation and interest rate uncertainty

Result Drivers

• GROSS PROFIT GROWTH - Co said gross profit increased in all channels, with aftersales and fleet segments contributing to profit growth

• COST CONTROL - Co maintained tight control of operating expenses, keeping costs as a percentage of revenue slightly down despite inflation

• CHINESE BRAND EXPANSION - Co expanded its network of Chinese automotive brand outlets, contributing to portfolio growth and new car market share

Company press release:

Key Details

Analyst Coverage

• The one available analyst rating on the shares is "buy"

• The average consensus recommendation for the auto vehicles, parts & service retailers peer group is "buy"

• Wall Street's median 12-month price target for Vertu Motors PLC is GBp95.00, about 17% above its October 13 closing price of GBp81.20

• The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 12 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)