Vertu Motors forecast trimmed
Motor distributor Vertu Motors has published a trading statement for the first five months of the financial year showing a weak new vehicle market. However, the used car market is more stable. The forecast for the current year has been trimmed.
Pricing of used vehicles has returned to normal trends and Vertu Motors has grown volumes and margins. There should be an improved performance in the second half. Vertu Motors believes that it is increasing its share of the new car market. The electric vehicle segment of the market is particularly weak. Aftersales business continues to grow. It contributed more than two-fifths of gross profit last year.
The full year pre-tax profit forecast has been cut from £42.2m to £40.2m, up from £37.1m last year.
Jet2 expectations upgraded
Canaccord Genuity has upgraded its forecasts for airline and tour operator Jet2 following its trading update.
There was strong late booking activity in the summer and the prices of holidays increased. Repeat package holidays customers account for more than three-fifths of numbers. Canaccord Genuity raised its 2024-25 pre-tax profit forecast from £523m to £535.5m -based on a 6% improvement in holiday prices. The dividend is expected to rise to 15.5p/share. The net debt forecast has been cut from £2.02bn to £1.99bn. Debt is on a rising trend due to investment in aeroplanes.
Next year, pre-tax profit could be £549.4m. The dividend may be 17p/share.
Kitwave on course this year
Groceries and catering distributor Kitwave Group trading has been strong in the four months to August 2024, which is an important trading period. Ice cream is an important component of sales during the summer.
The new south west England distribution facility should be completed by the year-end. This will improve efficiency and reduce costs in the region. There is plenty of scope for further acquisitions.
Canaccord Genuity still expects pre-tax profit to improve from £27.5m to £29m in the year to October 2024. It estimates an improvement in 2023-24 pre-tax profit from £27.5m to £29m. A total dividend of 11.3p/share is expected.
