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Vertu said today in a trading update that ‘exceptional used car trading conditions’ would help it deliver adjusted profit before tax of no less than £50m in the six months to 31 August 2021.
Its like-for-like new vehicle order take for the key plate-change in September was ahead of prior years but it warned that vehicle deliveries could be delayed because of shortages caused by the semiconductor crisis.
“As a consequence of reduced new vehicle supply, used vehicle supply may also be restricted in the coming months,” it said.
“Uncertainty also remains around the possible impact of COVID-19 from potential future restrictions and colleague absence. The current UK wide labour shortages, high vacancy levels and upward pressure on employment costs remain a risk for the business,” it added.
Vertu said it remained “cautiously optimistic” and upgraded its estimate for profit before tax for the current financial year to be in the range of £50m to £55m from previously £40m to £45m.
It said because of its strong first half performance it was re-establishing the payment of dividends to shareholders upon finalisation of the interim results.
It added that it was strategically well placed to capitalise on opportunities in the UK motor retail sector.