LONDON (ShareCast) - UK automotive retailer Vertu Motors saw its full-year revenues and profits rise on Wednesday thanks to an increase in customers and strong sales of used cars.
Revenues increased 23.2% to £2.07bn while profits before tax climbed 32.9% to £21m. Earnings per share jumped to 4.87p from 4.15p.

The group noted that an expansion in the new car market drove its like-for-like new retail sales volumes up 6.4%.

Meanwhile, like-for-like used cars volumes grew 9.2% to £63.4m.

Showing confidence in the business, Vertu decided to increase its dividend by 31.1% to 1.05p.

Chief executive Robert Forrester said: "The group is delivering a strong trading performance driven through its successful acquisition growth strategy and improvements in its underlying organic performance.

"Many businesses within the dealership portfolio in the Group have the potential to achieve enhanced margins."

N+1 Singer analysts noted the results were "fractionally ahead of expectations and current trading is encouraging in all divisions, including used cars.

"Although depreciation rates have worsened after a period of abnormal resilience Vertu indicates conditions look more typical now, rather than reflecting a hard landing. This should be well received."

Looking at the post year-end period, the group said March saw the highest UK registrations for new cars this century due to plate changes and its impact on new car demand.

Shares in Vertu were up 2.61% to 59p on Wednesday at 14:35.

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