Vertu Motors, the UK automobile retailer, climbed 5% after releasing interim results for the six months to 31 August 2008.
Financial highlights included earnings before interest, tax, depreciation and amortisation of £4.2 million, profits before tax of £1.9 million and earnings per share of 1.49 pence on revenues of £423.5 million. Group gearing increased to 25.9%, net asset per share held steady at 64 pence, and net debt shrunk to £15.3 million from £16.9 million at 29 February 2008.
Operationally, Vertu reported that like for like used car volumes for franchised dealerships increased by 15.1%, while new retail car volumes climbed 13.5% on a like for like basis against UK private registrations falling 7.3%.
Robert Forrester, Chief Executive, said:
"The UK economic environment is increasingly challenging for the motor industry as a whole, however, despite this economic backdrop, we have maintained tight cost control over the business and continued to outperform the market in September. We continue to anticipate further market weakness as the consumer adjusts to the economic environment.
With our strong balance sheet, positive cash flows and experienced and motivated management team, we believe we remain well placed to drive performance in our existing businesses and take advantage of opportunities which may arise out of the current difficult market environment."