Vertu Motors, the AIM-listed automotive retailing group, has issued a positive update on trading at its AGM recently. At the time of the announcement of the annual results for the year to 28 February 2021, the company stated that there had been strong trading in March and April, and this trend has continued since then. As a result, the company is expecting a very strong first half financial performance and it is now expected that the results for the financial year to 28 February 2022 will be ahead of expectations.
Company in brief
- Market: AIM
- Sector: Automotive
- Share price at time of reporting: 47p (28 June 2021)
- Market capitalisation: £173m
- Prospective P/E ratio: 7.0x
- Prospective dividend yield: 3.4%
Review
Vertu has seen a continuation of the strong trading witnessed in March and April, and if these trends continue then a strong first half performance is anticipated. However, there remain risks in relation to the remainder of the financial year concerning potential COVID-19 disruption and vehicle supply constraints. A tightening of new vehicle supply is increasingly apparent although the used car market remains very robust from a demand point of view.
