Bristol Street Motors owner confident of continued growth

CAR dealership group Vertu Motors, which owns Bristol Street Motors, has said it remains confident strong consumer demand will fuel growth for the remainder of the financial year.

In a trading update ahead of its half year results, the group – which operates across 97 outlets around the UK – said it had seen strong year-on-year growth across its new, used and vehicle servicing divisions and this looked set to continue.

Robert Forrester, Vertu chief executive, said: “Market conditions in the automotive retail sector remain favourable with growth in new car sales and stability in used vehicle pricing, and the robust and growing platform we have built is ensuring that these trends are converted into improved profits. Service operations in the group continue to exhibit growth as a consequence of higher levels of customer retention.”

Vertu Motors is now the sixth largest automotive retailer in the UK. Its dealerships operate predominantly under the Bristol Street Motors, Vertu Honda, Vertu Volkswagen, Farnell Land Rover and Macklin Motors brands.

It strengthened its presence in Birmingham last month with the opening of a new SEAT dealership at StarCity in a move which created 20 new jobs.

However, it has said it aims to continue with its expansion and is actively targeting new acquisitions. The acquisition strategy is supplemented by a focus on organic growth.

Elsewhere, the Institute of Motor Industry has urged the retail motor sector to capitalise on the opportunity of increased new car sales with a greater commitment to apprenticeships and training in order to deliver a quality service to the motorist.

Steve Nash, CEO of the IMI, said: “It is fantastic to see improved consumer confidence in the new car market, with the SMMT significantly raising its forecast for 2013.  But September is also the time when a lot of newly qualified youngsters with GCSE’s, A Levels and degrees will be looking for work and, despite youth unemployment, the market for the best talent is still highly competitive. So employers in our sector need to be active right now, getting their offers together and making sure they are ready to recruit.

“The retail motor industry, from independent garages to national franchise dealerships, offers a wealth of opportunities for every level of experience and career ambition.

“With all the excitement of predictions for a bumper September as the 63-registration plate hits the roads, let’s hope the industry can deliver an excellent after-sales experience.”