Vertu Motors, a UK car retailer, experienced a significant decline in shares, dropping by 20% in early trade. The company stated that it will fail to meet the market forecasts for fiscal 2024 due to various negative external factors.
As of 8:37 AM GMT, shares had fallen by 17.30 pence, reaching 67.50 pence.
Over the three months ending on November 30, Vertu Motors reported a 2% decrease in like-for-like used car volumes, with gross profit from sales falling below expectations. However, the company emphasized that this decline was an improvement compared to the 5.7% fall experienced during the first half of the fiscal year.
Chief Executive Robert Forrester acknowledged the volatile consumer environment and highlighted recent trends of sluggish new car retail demand and weakness in used car pricing. He noted that these trends are expected to persist for several months.
While the company did not disclose specific market forecasts, revenue for the fiscal year ending on February 29 is projected to be £4.8 billion ($6.03 billion) according to FactSet and Liberum's estimate. This represents an increase from the £4.01 billion achieved in fiscal 2023.