Vertu Motors (VTU) investor relations material

Executive summary

• Delivered resilient performance with revenue increasing to £4.83bn for FY26, driven by acquisitions and start-ups, despite a small decline in core revenues and sector headwinds.

• Maintained profitability and strong cash generation for the 20th consecutive year, supported by disciplined cost control and a £10m cost reduction programme for FY27.

• Adjusted profit before tax fell to £24.5m from £29.3m year-over-year, impacted by reduced new vehicle profitability and a cyber-attack at JLR, partially offset by insurance proceeds.

• Strategic focus on risk management, operational efficiency, expanding Chinese brand representation, and investing in talent and digitalization.

• Free cash flow was £30.7m, with net debt reduced to £61.3m.

Financial highlights

• Group revenues grew by approximately GBP 70 million year-over-year to £4.83bn; core group revenues declined 0.7%.

• Gross profit rose to £540.0m, with gross margin stable at 11.2% despite margin pressure in fleet and new vehicles.

• Adjusted operating profit and EPS declined due to reduced new vehicle profitability and increased operating expenses.

• Free cash inflow of GBP 30.7 million; net debt reduced to GBP 61.3 million.

• Tangible net assets per share increased to GBP 0.759 (75.9p).

Outlook and guidance

• Strong start to FY27 with profitability above prior year levels and record aftersales performance in March.

• GBP 10 million of cost savings targeted for FY27, including further headcount reductions and operational efficiencies.

• Continued focus on cost control, digitalization, and expanding used car initiatives.

• Cautious approach to expansion due to economic uncertainty, ZEV mandate impacts, and macro risks such as Middle East conflict and inflation.

• SMMT forecasts UK car registrations at 2.093m for 2026, with BEV mix revised down to 26.8%.