**Summary of Vertu Motors PLC Interim Results for H1 FY26 (Ended 31 August 2025)**
**Financial Performance**
**Revenue Growth** Vertu Motors reported record H1 revenues of £2,510.0 million, a 1.4% increase from H1 FY25 (£2,474.6 million), driven by the acquisition of the Burrows group in October 2024.
**Adjusted Profit Before Tax** Adjusted profit before tax decreased to £20.0 million from £22.1 million in H1 FY25, reflecting the relative strength of comparative profits in the prior year.
**Free Cash Flow** Improved to £0.4 million from a negative £14.3 million in H1 FY25.
**Net Debt** Reduced to £78.3 million from £83.9 million in H1 FY25.
**Operational Highlights**
**Market Share Gains** The Group grew its total market share in all new vehicle channels (retail, fleet, and commercial vehicles) to 4.5%, up from 4.4% in H1 FY25.
**BEV Retail Market Share** Like-for-like retail sales volumes of Battery Electric Vehicles (BEV) grew by 82.4%, significantly outpacing the UK BEV retail sales growth of 55.2%.
**Aftersales and Used Car Performance** High-margin aftersales and used car channels delivered strong performances, with like-for-like gross profit increases of £4.0 million and £0.6 million, respectively.
**Cost Control** Operating expenses increased by only 0.3% like-for-like, demonstrating tight cost control despite inflationary pressures.
**Strategic Initiatives**
**Brand Unification** Completed the rebranding of all outlets (except Ferrari) under the Vertu brand, enhancing national brand awareness from 11% to 19%.
**Portfolio Expansion** Opened three new BYD sales outlets, bringing the total to five, as part of the strategy to capitalize on the growing Chinese brand market share.
**Property Sales** Sold three surplus properties for £3.3 million, 10.7% above book value.
**Share Buyback Program** Repurchased 9.4 million shares at a cost of £5.6 million, continuing the share buyback program to drive shareholder value.
**Challenges**
**JLR Cyber-Attack** A cyber-attack on Jaguar Land Rover (JLR) in September 2025 significantly disrupted operations in the Groups 10 JLR dealerships, impacting September trading profit by £2.0 million. The Board anticipates a one-off reduction in adjusted profit before tax for FY26 of up to £5.5 million.
**New Car Market Conditions** The UK new car market remains subdued due to the Governments Zero Emission Vehicle (ZEV) mandate and general consumer environment.
**Outlook**
**Underlying Profit** Excluding the impact of the JLR cyber-attack, the underlying profit before tax for the full year is expected to be in line with market expectations.
**Government BEV Grants** Recent government announcements of BEV grants are expected to improve demand for new BEV cars in H2.
**Management Strengthening** Two new Managing Director roles have been created and filled internally to oversee dealership operations, enhancing management focus and efficiency.
**Conclusion**
Vertu Motors PLC demonstrated resilience in H1 FY26, achieving record revenues and market share gains despite challenges in the new car market and the JLR cyber-attack. The Groups strategic focus on cost control, brand unification, and portfolio expansion positions it well for future growth, with a cautious but optimistic outlook for the remainder of FY26.
| Metric | H1 FY26 | H1 FY25 | FY25 | Change H1 FY26 vs H1 FY25 |
|---|---|---|---|---|
| Revenue (£m) | 2,510.0 | 2,474.6 | 4,763.9 | +1.4% |
| Adjusted Profit Before Tax (£m) | 20.0 | 22.1 | 29.3 | -9.5% |
| Basic Adjusted EPS (p) | 4.57 | 4.77 | 6.58 | -4.2% |
| Dividends per share (p) | 0.90 | 0.90 | 2.05 | 0.0% |
| Free Cash Flow (£m) | 0.4 | -14.3 | 37.3 | +102.8% |
| Net Debt (£m) | 78.3 | 83.9 | 66.6 | -6.7% |
Key Observations:
- Revenue Growth: Revenue increased by 1.4% year-on-year, driven by acquisitions, particularly the Burrows acquisition in October 2024.
- Profit Decline: Adjusted profit before tax decreased by 9.5%, primarily due to the relative strength of H1 FY25 and challenges in the new car market.
- Debt Reduction: Net debt decreased by 6.7% compared to H1 FY25, reflecting improved cash flow management.
- Free Cash Flow Improvement: Free cash flow turned positive, significantly improving from a negative £14.3m in H1 FY25 to £0.4m in H1 FY26.