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Vertu Motors FY2025: £4.76bn revenue despite ZEV challenges. Resilient used cars & aftersales, £10m cost cuts. Key analysis here.
This article covers information on Vertu Motors PLC.
LON:VTUIn a year where the UK’s new car retail market hit a 25-year low, Vertu Motors has pulled off a minor miracle. The automotive retailer’s latest results reveal a business that’s equal parts resilient, pragmatic, and quietly opportunistic. Let’s unpack what’s driving this performance – and where the road might lead next.
While profits took a hit from ZEV mandate pressures and Motability volume declines, Vertu’s focus on used cars (7.1% gross margin) and aftersales (43.9% margin) provided crucial ballast. The real story? That £10m cost reduction programme – executed with military precision to offset Autumn Budget headwinds.
Government targets forced manufacturers into a BEV fire sale, with discounts reportedly topping £4.5bn industry-wide. Vertu’s response? Double down on Chinese OEM partnerships (BYD, Smart) while squeezing 83% growth in retail BEV sales. As CEO Robert Forrester dryly notes: “When life gives you lemons, start selling electric Citroëns.”
While new car margins wilted, Vertu’s used operations delivered:
The aftersales division became the unsung hero – 160,000 live service plans and £335 average invoice values (boosted by ‘Pay Later’ options) proving that Brits will always need brake pads changed, BEV or not.
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Vertu’s playing the long game:
March/April trading shows green shoots – profits ahead of prior year despite April’s 7.9% registration dip. But challenges loom:
Yet with £93m facility headroom and net debt at just 0.2x EBITDA, Vertu’s balance sheet remains its secret weapon. As Forrester notes: “We’ve navigated pandemics, Brexit and the chip crisis. This is just another pothole.”
Vertu’s proving traditional dealerships aren’t relics – they’re chameleons. By blending scale (5% UK market share), tech (AI pricing, CDP platform), and old-school service excellence, they’re rewriting the retail playbook. The 7.8% dividend yield and 72.9p net tangible assets/share suggest the market’s still pricing this as a clapped-out Mondeo rather than the Model 3 it’s becoming.
As the ZEV drama unfolds and Chinese brands reshape the market, Vertu’s mix of financial discipline and operational agility makes it one to watch. Just don’t expect a smooth ride – in this sector, there’s always a speed bump ahead.
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