Vertu Motors relies on aftersales growth as ZEV rules continue to pressure new-car profitability (VTU)

VTU Vertu Motors (LSE:VTU) reported revenue of £4.83 billion and adjusted pre-tax profit of £24.5 million for the year ended 28 February 2026, with results coming in slightly ahead of market expectations despite challenging conditions in the new vehicle market and margin pressure linked to the UK’s zero-emission vehicle (ZEV) mandate. The company said strong aftersales performance, disciplined cost management and healthy free cash flow helped support a maintained full-year dividend, continued share buybacks and lower net debt levels. The disposal of surplus property assets at premiums to book value also highlighted the strength of the group’s tangible asset base.

Management noted that trading momentum has carried into the new financial year, with profits for March and April exceeding the comparable period last year. Record aftersales gross profit continued to provide earnings support, helping offset weaker conditions in vehicle retailing. Vertu is also expanding its exposure to the older used-car market through its recently launched Value Cars by Vertu operation while broadening its franchise portfolio with additional Chinese automotive brands. The company cautioned that the ZEV mandate and wider geopolitical uncertainty are continuing to distort new-car demand and profitability, although management believes Vertu remains well positioned to benefit from ongoing consolidation across the automotive retail sector.

Vertu Motors’ outlook is driven by a stable financial foundation with solid revenue growth, supported by positive technical trends and a reasonable valuation. The strategic share buyback program further enhances shareholder value. However, profitability pressures and operational challenges, such as the cyber-attack, present risks that temper the outlook.

More about Vertu Motors

Vertu Motors is a major UK automotive retailer operating 191 sales and aftersales locations focused on new and used vehicle sales alongside servicing, maintenance and parts operations. The group has been consolidating its business under the single Vertu brand while expanding its franchise relationships to include rapidly growing Chinese car manufacturers. The company aims to leverage scale, digital capabilities and its property-backed balance sheet to compete within an evolving automotive retail market.