Car sector driving forward says Bristol Street Motors boss

BRITAIN’S car industry, a key sector with more than 800,000 employees, is poised for a rapid bounce back from the Covid-19 malaise according to one of its leading lights.

Robert Forrester, the chief executive of the business behind Bristol Street Motors, says business has boomed this week.

He told the Evening Standard: “If I had opened the doors and no one had turned up I would have been concerned. But there have been more bookings in last few days than I have ever seen before.”

In particular he said he was “amazed” at how many older people have been looking to buy a new car.

Vertu Motors, the car dealership that has 133 sales forecourts in the UK, today said it made profit of £23.5 million in the year to February before the virus truly struck.

It has made a loss of £20 million for April and May but is confident the business will thrive, partly thanks to conservative management that sees it carrying little debt.

Forrester said: “I have spent the best part of 20 years getting people into motor dealerships and the last two months effectively keeping them out. We entered the lockdown with a strong balance sheet, minimal use of used car stocking loans and excellent relationships with our banks, all of which means we have sufficient liquidity to weather this crisis.”

Vertu has sold 400 cars already this week. Forrester said: “People need cars unless they live in Central London. People want cars, they are fundamental to freedom.”

Revenues for the year rose nearly 3% to £3.1 billion. Like-for-like sales are up 1.2%.

Vertu is not paying a divi this year but Forrester sounds confident that payouts can resume before long despite staff being furloughed. The business has debt of less than £3 million and cash of nearly £23 million.

Vertu is the biggest Hyundai dealer and sells many other big brands including Ford.

Forrester insists staff morale is high and that his people were “itching to get back to work”.

Vertu shares were steady today at 30.2p.

Vertu hinted it could be in the mood for takeovers, saying it is in a good position to "take a larger role in the sector through consolidation and growth opportunities".