Vertu Motors Sees Strong Aftersales Performance, New Car Market Impacted By Zero Emissions Mandate

Vertu Motors (LON:VTU) anticipates full-year FY26 adjusted profit before tax to align with current market consensus, despite a challenging new car market.

The company said in a trading update on Thursday that its resilience is attributed to robust used car sales, a thriving aftersales business, and a keen focus on cost management.

For the five-month period to July 31, 2025, VTU said like-for-like used car volumes and margins remained stable despite supply constraints and dampened consumer confidence.

High-margin aftersales have experienced strong growth, driven by improved pricing strategies and successful Group initiatives.

However, the new car market continues to face headwinds from the Zero Emission Vehicle (ZEV) mandate and a cautious consumer environment.

Operating expenses remain level with the previous year despite inflationary pressures. The company added that it is actively managing its dealership portfolio, expanding its BYD outlets to five by November 1st.

The share buyback program continues, with £6.4 million of the £12.0 million authority already expended, repurchasing 9.4 million shares. Since July 2017, over £41 million has been returned to shareholders through share repurchases, reducing shares in issue by over 19%.

CEO Robert Forrester noted, “I am pleased with the Group's performance in the first half as we have navigated a subdued consumer backdrop and continued uncertainty in the new car market caused by the Government's Zero Emissions Vehicle mandate.”

Forrester also highlighted the expected benefits from new EV grants and the availability of more affordable EVs.

The company expects the Motability market to stabilize in H2 and anticipates continued stability in the used vehicle market. However, H1 profits are expected to be lower than the prior year, reflecting the relative strength of comparative profits in H1 last year compared to the year as a whole.

Vertu Motors’ interim results for the six-month period ending August 31, 2025, will be reported on October 8, 2025.