Vertu Motors’ trading update for the five-month period to 31 July, released today, confirms that FY25 adjusted PBT is expected to be broadly in line with market consensus. Profits in H1 will have been lower than in FY24, as anticipated, and H2 is expected to be better than in FY24 because of the improved used vehicle market and stable used car pricing. Although the new retail car market is soft and the BEV (battery electric vehicle) segment remains particularly weak, the used vehicle market is more stable with an improving outlook. Furthermore, the all-important Aftersales business continues to deliver good revenue and gross profit growth. We have edged our FY25 forecasts back, primarily due to the softness of the retail new car market but also to reflect some further staff cost pressures, with adjusted PBT moving from £42.2m to £40.2m. On the M&A front, H1 saw one bolt-on deal. With Vertu’s healthy balance sheet and industry position, the potential for significantly value-accretive acquisitions remains good.