Vertu Motors Plc · LSE:VTU
Vertu Motors — FY2025 Earnings Presentation
32 slides from Vertu Motors's earnings presentation, Feb 28, 2025
Slide 1: Year End Results
Analyst and Investor Presentation Year End Results For the year ended 28 February 2025
Slide 2: Vertu Advantages: Our Investment Case
Vertu Advantages: Our Investment Case Scale Benefits Customer Lifecycle Cost Optimisation Maximise Returns • Stable, experienced • Full sales and aftersales • In-house systems developed • Active portfolio management management team with offering to increase capture to improve process efficiency, wit
Slide 3: Highlights
Highlights • Revenues £4.8bn (FY24: £4.7bn): One of six UK supergroups • Higher gross margins delivered of 11.2% (FY24: 11.0%) with increased higher margin aftersales mix • Adjusted PBT1 down from £34.8m to £29.3m reflecting impact of ZEV mandate on new retail volumes and margins • Strong H2 cash pe
Slide 4: Current Trading – March & April
Current Trading – March & April • Strong start to the new financial year across all areas of the business Like-for-Like Vehicle Volume – March & April FY2026 with increased profitability year-on-year • Like-for-like new retail volumes grew by 9.0% compared to prior year Group Like-for- UK % Change G
Slide 5: Outlook
Outlook • Manufacturers refocusing on new retail channel after 2024 lows driving growth • ZEV mandate likely to continue to drive volatility and uncertainty in new car market: Natural BEV demand remains low compared to supply • Aftersales performance aided by Group’s retention and sales conversion s
Slide 6: Strategic Update
Strategic Update Robert Forrester CEO
Slide 7: Consistent Group Strategy
Consistent Group Strategy Mission & To aim for every dealership to be To deliver an outstanding customer Vertu Motors to be the most Values the best retailer in their respective motoring experience through admired and respected dealer town or city honesty and trust group in the automotive industry P
Slide 8: Sector Trends – Some near-term uncertainty
Sector Trends – Some near-term uncertainty Electrification Tariffs & Chinese Entrants Finance Commission • VETS (Vehicle Emissions Trading • Increasing number of new Chinese • FCA review into automotive finance, Scheme) from January 2024 manufacturers entering the UK in the with a focus on Discretio
Slide 9: Digitalisation, Efficiency & AI
Digitalisation, Efficiency & AI Finance Efficiency Data and AI Customer Data Platform Over 9,000 vehicles transferred between dealerships via automated % of used vehicles sold accounting process in first 6 with discount months 83 • Use of API and Robotics to drive process efficiency and cost savings
Slide 10: Brand and Marketing - One retail brand delivered
Brand and Marketing - One retail brand delivered Rebrand Partnerships TV Community • Full rebrand of all Scottish • EFL Trophy headline • “We are Vertu”, Nationwide • New partnership with dealerships from Macklin sponsor TV marketing campaign Birmingham Primary Motors to Vertu Schools for city wide
Slide 11: Financial Performance
Financial Performance Karen Anderson CFO
Slide 12: Income Statement
Income Statement Revenue: £123.9m rise in revenues Year Ended 28 February driven by acquired businesses, and start-ups. Core Group revenues saw a £’m (unless otherwise stated) 2025 2024 % Change small decline of 0.1% due to lower new 1.7% retail vehicle sales Revenue3 4,763.9 4,686.3 Gross profit 53
Slide 13: Profit Bridge – Adjusted PBT
Profit Bridge – Adjusted PBT Core Group Gross Profit Movement: +7.0m 12.3 (10.0) (10.9) (1.6) (0.9) 5.7 (0.1) 34.8 29.3 FY24 Adjusted New vehicles New fleet & Used vehicles Aftersales Core Group Finance costs Acquisitions, FY25 Adjusted PBT commercial operating start-ups and PBT vehicles expenses di
Slide 14: Management of Cost Headwinds
Management of Cost Headwinds 12 months ended 28 February Autumn Budget Changes: • Impact of changes to National Minimum £’m 2025 2024 Variance Variance % Wage and Company NIC on the Group is £10m annualised from 1 April 2025 Salary cost 260.0 248.4 11.6 4.7% • Group has delivered savings sufficient
Slide 15: Balance Sheet
Balance Sheet 28 Feb 2025 29 Feb 2024 • Tangible net assets per share at 72.9p, up from £’m £’m 70.5p Intangible assets 137.2 131.2 • Freehold and long leasehold property portfolio Retirement benefit asset 3.9 2.5 at depreciated historic cost of £330.9m Right-of-use (ROU) assets 83.7 72.9 • Cash of
Slide 16: Free Cash Flow, Net Debt and Gearing
Free Cash Flow, Net Debt and Gearing Cash Flow 12 Months Ended 28 February 2025 £’m Operating profit 47.8 Strong H2 Working Capital inflow: £45.8m Depreciation, amortisation and impairment 39.5 Profit on sale of assets (1.2) Net Debt: £66.6m (FY24: £54.0m) Working capital 7.0 Lower than market expec
Slide 17: Portfolio Development - Acquisitions and Start-ups
Portfolio Development - Acquisitions and Start-ups Acquisitions New outlets and start-ups • Acquisition of Burrows Motor Company Limited in October 2024 • New franchises of BYD and Ducati commenced in the Year • 5 Toyota, 2 Mazda and 1 Kia dealerships • Newly constructed dealership opened in Ayr for
Slide 18: Capital Allocation
Capital Allocation Pruning Share Buyback Dividends • The Group ceased operations in • 7.5m shares (2.2% of share capital • Dividend cover on adjusted diluted several locations as part of pruning in issue at 1 March 2024) EPS adjusted to 2.5-3.5 times activity following a review of repurchased for £4
Slide 19: Trading and Operational Update
Trading and Operational Update
Slide 20: Group Vehicle Sales Performance
Group Vehicle Sales Performance Like-for-Like Vehicle Volumes year to 28 February 2025 Total Group Gross Profit Per Unit £ 2,205 FY25 Group Like-for- UK % Change Group Like-for-like 1,984 1 Volume2 like % Change (SMMT) v SMMT % New retail car and bikes3 35,784 (3.9%) (7.4%) 3.5% 1,844 1,455 Motabili
Slide 21: UK BEV Market
UK BEV Market SMMT H1 FY25 H2 FY25 Full Year FY25 • Like-for-like BEV sales growth ahead of market Private BEV +/- % v prior year (7.0%) 35.5% 12.9% trends in private channel • Vertu market share of private BEV market increased in H2 and was broadly in-line with Vertu Like-for-like equivalent share
Slide 22: Group Aftersales Performance
Group Aftersales Performance Gross profit up in all major channels (L4L) Like-for-like Accident & Service Parts Fuel Forecourt Total FY25 v FY24 Smart Repair Revenue1 (£’m) 208.7 268.8 27.5 11.0 516.0 Revenue1 Change % 6.3% 6.2% 3.8% (6.8%) 5.8% Gross profit (£’m) 151.5 57.4 16.7 0.9 226.5 Gross pro
Slide 23: Service
Service Growing revenues Resource Benefits of Retention Pay Later per customer Number of Technicians < 3 years > 3 years Employed (L4L) 914 919 916 885 38% 62% 829 831 835 832 806 £285 £366 Feb Aug Feb Aug Feb Aug Feb Aug Feb Mix of work and 21 21 22 22 23 23 24 24 25 • Deferred payment solution for
Slide 24: Group Well Positioned
Group Well Positioned Group stable, well-capitalised and asset backed Firepower to further expand operations and scale Digitalisation gathering pace in impact, benefiting customers and productivity People-focus provides talented, motivated colleagues to serve customers Capital allocation and shareho
Slide 25: Definitions of Key Terminology
Definitions of Key Terminology Core: Comparison against FY2024 Dealerships that have traded for the full period of March 2023 to February 2024 and March 2024 to February 2025 Like-for-like: Dealerships that have comparable trading periods in two consecutive financial years, only the comparable perio
Slide 26: New Vehicle Trends (Retail and Motability)
New Vehicle Trends (Retail and Motability) H1 H2 H1 H2 H1 H2 H1 H2 FY2022 FY2022 FY2023 FY2023 FY2024 FY2024 FY2025 FY2025 Selling price per unit [1] (£) 21,423 22,539 24,062 24,191 25,906 25,338 26,180 26,064 Gross profit per unit [1] (£) 1,688 2,205 2,105 2,246 2,170 2,019 1,965 1,984 Margin (Grou
Slide 27: Fleet and Commercial Vehicle Trends
Fleet and Commercial Vehicle Trends H1 H2 H1 H2 H1 H2 H1 H2 FY2022 FY2022 FY2023 FY2023 FY2024 FY2024 FY2025 FY2025 Selling price per unit (£) 23,850 24,874 24,109 25,730 27,085 28,196 29,288 29,806 Gross profit per unit (£) 878 1,046 988 1,049 1,160 1,296 1,272 1,194 Margin (Group) 4.2% 4.8% 4.7% 4
Slide 28: Used Vehicle Trends
Used Vehicle Trends H1 H2 H1 H2 H1 H2 H1 H2 FY2022 FY2022 FY2023 FY2023 FY2024 FY2024 FY2025 FY2025 Selling price per unit (£) 16,194 19,951 19,861 20,328 21,580 20,425 20,634 21,057 Gross profit per unit (£) 1,657 1,844 1,560 1,468 1,535 1,296 1,490 1,455 Margin (Group) 10.2% 9.2% 7.9% 7.2% 7.1% 6.
Slide 29: Vehicle Volumes Sold
Vehicle Volumes Sold FY25 vs FY24 FY25 vs FY24 +/- % +/- % Total units sold Like-for-like units sold 30,581 29,611 +0.3% Used Trade +2.1% Used Trade 31,220 29,709 86,437 85,176 +0.7% Used Retail +2.8% Used Retail 88,851 85,769 27,144 +3.1% 27,800 New Fleet & Agency Car +2.6% New Fleet & Agency Car S
Slide 30: Net Debt & Borrowing Facilities
Net Debt & Borrowing Facilities Facilities Drawn Net Debt at 28 February 2025 £’m £’m 5 year acquisition facility (from December 2022) 93.0 55.4 20 year mortgage facility (from December 2020) 10.1 10.1 20 year mortgage facility (from December 2022) 66.3 66.3 20 year mortgage facility (from December
Slide 31: Dealership Portfolio
Dealership Portfolio 198 sales outlets Sales Sales Outlets Outlets Vauxhall 16 Land Rover 10 JLR Stellantis Peugeot 11 Jaguar 1 Citroen 7 Toyota 11 BMW 7 Mercedes-Benz 5 Mercedes BMW MINI 7 Mercedes-Benz Commercial Vehicles 1 BMW Motorcycles 4 Volvo 6 Ford 21 MG 4 Nissan 12 Mazda 4 Renault Nissan Re
Slide 32: Disclaimer
Disclaimer This presentation contains forward looking statements. Although the Group believes that the estimates and assumptions on which such statements are based are reasonable, they are inherently uncertain and involve a number of risks and uncertainties that are beyond the Group’s control. The G