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Vertu Motors shares slump following profit warning<!-- wp:html --><p><a href="https://whatsnew2day.com/">WhatsNew2Day - Latest News And Breaking Headlines</a></p> <div> <p><strong>Shares in the owner of Bristol Street Motors had fallen 23.8% by late afternoon.</strong><br /> <strong>The company attributed the forecasts to “a series of negative factors in the external market.” </strong><br /> <strong>The value of used cars in the UK fell by an average of 4.2% in both October and November </strong></p> <p class="author-section byline-plain">By Harry Wise <a target="_blank" href="https://twitter.com/intent/follow?screen_name=harrywisey&tw_p=followbutton" class="twitter-follow-author" rel="noopener"><span class="follow-author"></span></a> </p> <p class="byline-section"><span class="article-timestamp article-timestamp-updated"> <span class="article-timestamp-label">Updated:</span> 08:56 EST, December 7, 2023 </span> </p> <p> <!-- ad: https://mads.dailymail.co.uk/v8/us/money/moneymarkets/article/other/para_top.html --> <!-- CWV --><!--[if !IE]>>--> <!-- <!--[if IE]>--></p> <p> <!--[if !IE]>>--> <!--<!--[if IE]>--></p> <p> <!--[if !IE]>>--> <!--<!--[if gte IE 8]>>--> <!-- <!--[if IE 8]>--></p> <p> <!--[if IE 9]>--></p> <p> <!--[if IE]>--></p> <p> <!--[if !IE]> --> <!--</p> <p> <!-- SiteCatalyst code version: H.20.3. Copyright 1997-2009 Omniture, Inc. More info available at http://www.omniture.com --> </p> <p> <!-- End SiteCatalyst code version: H.20.3. --> <!--[if IE]>--></p> <p> <!--[if !IE]> --> <!--<!--[if IE]>--></p> <p> <!--[if !IE]> --> <!-- <!-- CWV --></p> <div> <p class="mol-para-with-font"><a target="_blank" class="class" href="https://investing.thisismoney.co.uk/quote/VTU" rel="noopener">Vertu Motors Stock </a>plunged on Thursday after the retailer warned that annual profits would likely fall short of market expectations.</p> <p class="mol-para-with-font">Shares in the owner of Bristol Street Motors had fallen 23.8 per cent to 64.6p by early afternoon, making it one of the five biggest fallers on the Aim All-Share index.</p> <p class="mol-para-with-font">The Gateshead-based company attributed the lowering of its guidance to a “number of negative external market factors” that affected the group during the three months to the end of November.</p> <div class="artSplitter mol-img-group"> <div class="mol-img"> <div class="image-wrap"> </div> </div> <p class="imageCaption">Watch out: Shares in Vertu Motors plunged on Thursday after the retailer warned that annual profits would likely fall short of market expectations.</p> </div> <p class="mol-para-with-font">UK used car values ​​fell by an average of 4.2 per cent in both October and November, a record monthly drop, with the biggest drop seen in the premium brand segment.</p> <p class="mol-para-with-font">Vertu blamed rising inventory in the wholesale market as well as sluggish retail demand caused by continued high vehicle prices and interest rates, which test customer affordability.</p> <p class="mol-para-with-font">Its comparable used vehicle volumes contracted 2 percent, although this was an improvement from the 5.7 percent drop from the previous six months.</p> <p class="mol-para-with-font">Britain’s fourth-largest car retailer also said it was hit by new vehicle margins, which continued to trend downward as supply volumes began to “exceed natural levels of demand”.</p> <p class="mol-para-with-font">Robert Forrester, chief executive of Vertu, said: “The current consumer environment remains volatile and recent trends of sluggish retail demand for new cars and weakness in used car prices are likely to persist for some months.”</p> <p class="mol-para-with-font">But he added that the group “has a solid balance sheet and a long track record of operational excellence and financial discipline.”</p> <p class="mol-para-with-font">“These attributes mean we remain very confident in our ability to take advantage of these challenging market conditions and the resulting increased opportunities in the sector,” Forrester said. </p> <p class="mol-para-with-font">Like other car dealers, Vertu’s trading took off when Britons started buying more second-hand cars again after Covid-related restrictions were gradually eased two years ago.</p> <p class="mol-para-with-font">Used vehicle prices rose significantly as a semiconductor shortage forced motor manufacturers to reduce production and limited the volume of new vehicles coming to market.</p> <p class="mol-para-with-font">While remaining above pre-pandemic levels, second-hand vehicle prices have fallen about 18 percent since April due to slowing demand, according to figures from trade pricing experts Cap HPI.</p> <p class="mol-para-with-font">Vertu said second-hand vehicle values ​​”will likely continue to weaken above historical norms in the near term.”</p> <p class="mol-para-with-font">The group said lowering interest rates over the medium term would help improve affordability and provide “additional stimulus” to a market seeing increased supply.</p> <p class="mol-para-with-font">Russ Mould, chief investment officer at AJ Bell, said the “delayed impact” of higher interest rates means appetite for major purchases will likely be pressured for some time and could make Vertu’s path to recovery difficult. hilly.</p> </div> <p> <!-- ad: https://mads.dailymail.co.uk/v8/us/money/moneymarkets/article/other/inread_player.html --></p> <div class="column-content cleared"> <div class="shareArticles"> <h3 class="social-links-title">Share or comment on this article: Vertu Motors shares plunge after profit warning</h3> </div> </div> <p class="mol-style-italic byline-section justify">Some links in this article may be affiliate links. If you click on them, we may earn a small commission. That helps us fund This Is Money and keep it free to use. We do not write articles to promote products. We do not allow any commercial relationship to affect our editorial independence.</p> </div> <p><a href="https://whatsnew2day.com/vertu-motors-shares-slump-following-profit-warning/">Vertu Motors shares slump following profit warning</a></p><!-- /wp:html -->

WhatsNew2Day – Latest News And Breaking Headlines

Shares in the owner of Bristol Street Motors had fallen 23.8% by late afternoon.
The company attributed the forecasts to “a series of negative factors in the external market.”
The value of used cars in the UK fell by an average of 4.2% in both October and November

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Vertu Motors Stock plunged on Thursday after the retailer warned that annual profits would likely fall short of market expectations.

Shares in the owner of Bristol Street Motors had fallen 23.8 per cent to 64.6p by early afternoon, making it one of the five biggest fallers on the Aim All-Share index.

The Gateshead-based company attributed the lowering of its guidance to a “number of negative external market factors” that affected the group during the three months to the end of November.

Watch out: Shares in Vertu Motors plunged on Thursday after the retailer warned that annual profits would likely fall short of market expectations.

UK used car values ​​fell by an average of 4.2 per cent in both October and November, a record monthly drop, with the biggest drop seen in the premium brand segment.

Vertu blamed rising inventory in the wholesale market as well as sluggish retail demand caused by continued high vehicle prices and interest rates, which test customer affordability.

Its comparable used vehicle volumes contracted 2 percent, although this was an improvement from the 5.7 percent drop from the previous six months.

Britain’s fourth-largest car retailer also said it was hit by new vehicle margins, which continued to trend downward as supply volumes began to “exceed natural levels of demand”.

Robert Forrester, chief executive of Vertu, said: “The current consumer environment remains volatile and recent trends of sluggish retail demand for new cars and weakness in used car prices are likely to persist for some months.”

But he added that the group “has a solid balance sheet and a long track record of operational excellence and financial discipline.”

“These attributes mean we remain very confident in our ability to take advantage of these challenging market conditions and the resulting increased opportunities in the sector,” Forrester said.

Like other car dealers, Vertu’s trading took off when Britons started buying more second-hand cars again after Covid-related restrictions were gradually eased two years ago.

Used vehicle prices rose significantly as a semiconductor shortage forced motor manufacturers to reduce production and limited the volume of new vehicles coming to market.

While remaining above pre-pandemic levels, second-hand vehicle prices have fallen about 18 percent since April due to slowing demand, according to figures from trade pricing experts Cap HPI.

Vertu said second-hand vehicle values ​​”will likely continue to weaken above historical norms in the near term.”

The group said lowering interest rates over the medium term would help improve affordability and provide “additional stimulus” to a market seeing increased supply.

Russ Mould, chief investment officer at AJ Bell, said the “delayed impact” of higher interest rates means appetite for major purchases will likely be pressured for some time and could make Vertu’s path to recovery difficult. hilly.

Vertu Motors shares slump following profit warning

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