Vertu Motors returned to profit in July

Chief executive Robert Forrester said: "July trading continued the trends seen in June and was significantly stronger than both what we envisaged and the group's original business plan for the month.

"A robust recovery in customer demand for our vehicles and servicing has continued, aided by our investments in omnichannel retailing. A very successful zero per cent finance used vehicle sale event was executed in a majority of the group's English dealerships and this, together with strong used car margins, aided the delivery of a record month for used car profits."

The group's after sales operations also performed well, delivering year on year growth in revenue, gross profit and margin.

Vertu – the fifth largest automotive retailer in the UK with a network of 134 sales outlets – delivered an adjusted profit before tax of £7.4 million in July, significantly ahead of the previous year and original business plan reflecting customer demand.

The result included £1.3m in respect of monies received from the Job Retention Grant. Vertu expects the remaining furloughed staff to be back to work by the end of August.

The group incurred an adjusted loss before tax of £5.2m in the March to June period and has now made year to date an adjusted profit before tax of £2.2m.

It has continued to see robust retail sales demand in the new and used car and van segments in July.

In July new car sales rose 18.1 per cent, used cars 13.7 per cent and commercial vehicles 4.5 per cent, but fleet car sales were down 24.4 per cent.

After sales demand continued to be strong and is above normal levels with July delivering an 11.2 per cent rise in core group service gross profit.

The group's interim results are due to be announced on October 7.