Strong trading drives forecast upgrade

The trading update released today provides encouraging news. Both new and used vehicles are performing well and ‘Value Cars by Vertu’ has been launched successfully. The portfolio exposure to leading Chinese brands is building; the focus on costs is a constant. Management welcomes the government consultation on the ZEV mandate, albeit with a note of caution. Orders for the July-September quarter ahead of the September plate change give management the confidence to anticipate FY27 results ahead of market expectations, and we raise our FY27 adjusted PBT estimate accordingly.