Vertu Motors (VTU) H2 2026 earnings summary

Executive summary

• Revenue increased to £4.83bn for FY26, up from £4.76bn in FY25, driven by acquisitions and start-ups, despite a small decline in core revenues.

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

• Strong aftersales performance contributed 46% of gross profit, with record labour sales and resilient service contract base.

• Disciplined cost control and a £10m cost reduction programme implemented, including headcount reduction and closure of loss-making dealerships.

• Net debt reduced to £61.3m (from £66.6m), with free cash flow at £30.7m (down from £37.3m).

Financial highlights

• Gross profit rose to £540.0m (FY25: £532.9m), with gross margin stable at 11.2%.

• Adjusted operating profit declined 11.3% to £46.5m.

• Adjusted basic EPS decreased 13.2% to 5.71p; dividend per share held at 2.05p.

• Operating expenses increased 2.7% to £493.5m, reflecting inflation and agency model transition.

• Exceptional costs of £5.1m related to restructuring, offset by £0.9m profit on property disposals.

Outlook and guidance

• Strong start to FY27 with profit above prior year levels and record aftersales performance.

• Macro risks include Middle East conflict, inflation, and fuel price volatility, but no material consumer weakness observed.

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

• £10m cost efficiency programme and operational improvements underway to support FY27.