Vertu resilient despite 'significant challenges'

BOSSES at motor retailer Vertu have hailed a robust performance against a background of “significant challenges”, chalking up a rise in revenues to £4.76bn in a year of significant challenges.

- COREENA FORD Business writer [e-mail]

Pre-tax profits fell 15% to £29.3m and operating profit dropped 4.6% to £47.8m in the year ended February 2025 at the Gateshead business, which operates a network of 198 sales and after-sales outlets under the Vertu and Ferrari brands, but CEO Robert Forrester said the group was pleased with the performance in light of a series of challenges. Revenue rose 1.65% to £4.76bn and a final dividend of 1.15p per share is recommended, bringing the full year dividend to 2.05p per share, down from 2.35p.

The firm - now the sixth biggest dealership in the UK - said that FY25 brought “significant profitability challenges” in the new car market, driven by the impact on manufacturers seeking to meet “overly ambitious” Government targets for Battery Electric Vehicle (BEV) sales under its zero emissions vehicles mandate.

The year saw the business undertake a significant number of start-ups and acquisitions, including the £22m Burrows acquisition of nine outlets; the £1m purchase of a Honda dealership in Exeter from Hendy Group Limited, and the acquisition of The Union Motor Company Limited, an authorised repairer for London Electric Vehicle Company (LEVC) based in Edinburgh.

Compounding difficulties in the new car market, Vertu said the Autumn Budget introduced substantial cost increases that will impact FY26.