By Samuel Indyk
Investing.com – Shares in Vertu Motors (LON:VTU) were trading higher on Wednesday morning after the company upped its profit guidance following strong trading trends in the early part of the year.
The automotive retailer said the strong trading performance in the early part of the year has been driven largely by the “exceptional” used car market environment and now anticipates that full year adjusted profit before tax will be above current expectations in the range of £28mln-£32mln.
Note of caution
Although the board remains confident in the company’s prospects, they sounded a note of caution given risks related to disruption from the pandemic and vehicle supply constraints.
A tightening of supply related to the semiconductor shortage is increasingly apparent, the company said. Adding that the expected time between order and delivery of new vehicles to customers for certain franchises is seeing elongation.
The update from Vertu echoes that of Inchcape (LON:INCH) last week, where the company also highlighted that profit is likely to exceed expectations but noted the high level of uncertainty related to the pandemic and shortage of semiconductors. Other companies within the sector include Lookers (LON:LOOK) and Auto Trader (LON:AUTOA).
At 09:10BST, shares in Vertu Motors were trading higher by 1.9% at 46.78 pence per share.