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Vertu Motors Upgrades Full-Year Guidance as First-Half Profit Rises 19%

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VTUGBX 85.45 5.24%

Vertu Motors plc (VTU) reported a 19.0% increase in adjusted pre-tax profit to £23.8 million for the six months ended 31 August 2026, supported by record revenue of £2.6 billion and like-for-like sales growth across all operating channels. Statutory pre-tax profit rose 24.1% to £24.2 million, while retail volumes for battery electric vehicles jumped 125.6%.

The UK car dealership group announced that its full-year results are anticipated to beat current market expectations, marking its third profit upgrade of the financial year. Strong operational cash generation of £17.5 million helped reduce net debt to £54.2 million, allowing the board to approve an 11% increase in the interim dividend to 1.0p per share alongside ongoing share repurchases.

Looking ahead, Vertu Motors plans to open 11 additional sales outlets for Chinese automotive brands over the next nine months, expanding on its current 20 locations. Management noted positive trading momentum in September, though it remains cautious regarding inflation, interest rates, and regulatory impacts from the Zero Emission Vehicle mandate.

Key points

  • Vertu Motors reported a 19.0% increase in first-half adjusted pre-tax profit to £23.8 million on record revenues of £2.6 billion.
  • Full-year earnings for the year ending 28 February 2027 are expected to exceed market expectations after strong early second-half trading.
  • Net debt decreased to £54.2 million following free cash flow generation of £17.5 million during the period.
  • The company raised its interim dividend by 11% to 1.0p per share, payable in January 2027.
  • Vertu Motors plans to add 11 new Chinese brand outlets over the next nine months to expand its current network of 20 locations.

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Questions and answers

What were Vertu Motors' first-half results for 2026?

Vertu Motors reported record revenue of £2.6 billion and an adjusted pre-tax profit of £23.8 million for the six months ended 31 August 2026, up 19.0% from the prior year period.

Is Vertu Motors raising its full-year forecast?

Yes, Vertu Motors announced that full-year results for the financial year ending 28 February 2027 are anticipated to be above current expectations.

How much is Vertu Motors paying in dividends?

The company approved an 11% increase in its interim dividend to 1.0p per share, which will be paid to shareholders in January 2027.