UK's Vertu Motors forecasts upbeat annual profit, shares hit over 19-year high

Aug 27 (Reuters) - Vertu Motors said on Thursday its annual profit would come in ahead of market expectations as strong demand and increased exposure to Chinese brands lifted sales.

Shares of the company, which operates out of 194 sales outlets across the UK, jumped as much as 6.7% to their highest level in more than 19 years. 

Here are some more details:

• Vertu projected fiscal 2027 adjusted pretax profit above analysts' expectations of £25.5 million ($34.66 million), according to company-compiled data. Revenue rose 4.6% in the five months to July 31.

• The company is rapidly expanding its exposure to Chinese carmakers. It launched its first Omoda and Jaecoo and Leapmotor outlets over the past two months.

• The company now operates 18 sales outlets representing Chinese brands, including BYD and MG, and said it plans to expand that further in the coming months.

• Vertu had closed a loss-making Mazda outlet in York last month and combined its Sheffield Mazda operation with Nissan in a bid to cut costs.

• British new car sales rose last month, marking their best performance since ​2019 as battery electric vehicle (BEV) sales reached another record, ‌industry data showed. Chinese brands account for a growing share of new car sales.

• The company had struck a cautious tone in May, warning that the Iran war, the UK's electric-vehicle sales targets, and Jaguar Land Rover-related disruption could hit prices and demand.

($1 = 0.7357 pounds)

(Reporting by Amna Mariyam in Bengaluru; Editing by Devika Syamnath)