Vertu Motors (VTU) investor relations material

Executive summary

• H1 FY27 revenue reached a record £2,596.5m, up 3.4%; adjusted PBT rose 19% to £23.8m, with gross profit growth across channels.

• Free cash flow was £17.5m, cash conversion 94.2%, and net debt excluding lease liabilities fell to £54.2m from £61.3m at FY26 year-end.

• FY27 results are expected to exceed current expectations after three year-to-date profit upgrades; September trading was strong.

Financial highlights

• Revenue rose 3.4% to £2,596.5m; gross profit increased 2.9% to £290.6m, with gross margin stable at 11.2%.

• Adjusted operating profit grew 9.7% to £34.0m; adjusted PBT was £23.8m versus £20.0m, while reported PBT rose 24.1% to £24.2m.

• Profit after tax increased 25.4% to £17.8m; adjusted basic EPS rose 24.9% to 5.71p, and interim dividend increased 11.1% to 1.00p per share.

• Like-for-like revenue grew 4.3%; like-for-like gross profit increased £10.9m, led by aftersales (+£3.9m) and new vehicles (+£3.4m).

• Non-underlying items were net income of £0.4m, including a £0.5m property disposal profit partly offset by site-closure costs.

Outlook and guidance

• FY27 adjusted PBT consensus was £26.5m, within a £25.5m–£27.1m range, based on data compiled to 13 October 2026.

• September trading was stronger than anticipated, with profit ahead of the prior year after adjusting for the JLR cyber incident impact.

• FY27 net capital expenditure is expected to be £21.6m, including further Chinese-brand outlet expansion.

• Self-help initiatives include Value Cars expansion, Shariah-compliant used-car finance, revised sales and technician remuneration, technology and cost efficiencies.