Vertu new and used car sales surge

01 September 2010

Vertu Motors has reported a rise in new and used car sales volumes, and said it is expecting half-year profits to be "materially" ahead.

The group's half year trading update, ahead of the firm's interims to be released on October 20, said private new car like-for-like sales volumes have increased 6.7% in the five months to July, while used car volumes increased by 5.2%.

Shares in the Newcastle group surged by 6%. The firm said the new car sales rise came despite the end of the 'cash for bangers' scrappage scheme, which saw demand for new cars tail off.

Service and bodyshop sales rose on a like-for-like basis by 2.4% and 2.1% respectively, along with an increase in profitability helped by "strong cost control".

Vertu said its parts division had seen a "very strong performance", aided by a rise in their demand - which lifted the firm's aftersales business.

The group also acquired eight dealerships in the half year.

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