Vertu Motors (VTU) H1 2027 Pre recorded earnings summary

Executive summary

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

• Free cash flow reached £17.5m, cash conversion was 94.2%, and net debt excluding lease liabilities was £54.2m.

• After a third FY27 profit upgrade and strong September trading, full-year results are expected ahead of current expectations.

Financial highlights

• Revenue increased to £2,596.5m from £2,510.0m; gross profit rose 2.9% to £290.6m, with gross margin steady at 11.2%.

• Adjusted operating profit increased 9.7% to £34.0m; adjusted PBT rose to £23.8m from £20.0m, and reported PBT to £24.2m from £19.5m.

• Adjusted basic EPS increased 24.9% to 5.71p; reported basic EPS was 5.80p versus 4.46p, and the interim dividend rose 11.1% to 1.00p per share.

• Like-for-like gross profit increased £10.9m; BEV new retail sales volumes grew 125.6% against market growth of 75.9%.

• Operating expenses rose 2.1% to £256.6m; operating expenses as a share of revenue improved to 9.9% from 10.0%.

Outlook and guidance

• FY27 results are expected above current expectations; analyst consensus adjusted PBT was £26.5m, within a £25.5m–£27.1m range as of 13 October 2026.

• September trading was stronger than expected, with profit above prior-year levels after adjusting for the previous year's JLR cyberattack impact.

• Planned FY27 net capital expenditure is £21.6m, including Chinese-brand expansion; further efficiency initiatives target technology, energy savings and marketing returns.

• A further 11 Chinese outlets are under advanced discussion, potentially taking the network to 31 outlets, or ~15% of total outlets.

• Value Cars expansion, Shariah-compliant used-car finance and technician pay enhancements from 1 November 2026 are planned.