- Auto dealer Vertu Motors upgraded its annual earnings guidance, though it tempered its optimism with a warning of vehicle supply constraints.

Annual adjusted pre-tax profit was now expected to be above current expectations and in the range of £28 million-to-£32 million, the company said.

Vertu Motors said it had seen a continuation of strong trading trends witnessed in March and April.

'However, there remain risks in relation to the remainder of the financial year concerning potential Covid-19 disruption and vehicle supply constraints,' it said.

'A tightening of new vehicle supply, largely reflecting component shortages flagged in the year end announcement, is increasingly apparent.'

'The expected time between order and delivery of new vehicles to customers for certain of the group's franchises is now seeing elongation.

Vertu Motors said the used car market remained very robust from a demand perspective.

'The reduction in new car supply is contributing to a reduced supply of used vehicles, with a resultant exceptional wholesale pricing environment,' it said.

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