BUSINESS LIVE: Vertu eyes UK zero emissions boost; Landsec ups Bluewater stake; Saga insurance challenges

Derren Nathan equity research, Hargreaves Lansdown:

‘With few UK corporate or economic releases scheduled for today, the FTSE 100 is expected has opened flat.

‘One British company that has updated on trading, however, is car dealership network Vertu Motors. New vehicle volumes were up 6.8%, but margins were down, reflecting increased discounting.

‘Softness in auto pricing is another sign that inflation is receding and will provide some comfort for those hoping for interest rate cuts in the near future.

‘Used vehicle volumes also grew strongly, with prices remaining stable. The Group also noted that regulatory support for electric vehicles may lead to the strengthening of petrol and diesel used car values as supply dwindles. Overall, Vertu expects that results for the year ending February 2025 will be in line with market expectations.’

Over 50s specialist Saga has said its cruise business has seen an ‘exceptional’ level of bookings this year, but cautioned over a challenging market squeezing its insurance division.

The London-listed firm, which specialises in products and services for people over 50, highlighted a buoyant start to the year for its ocean and river cruises.

Bookings are ahead of the same time last year, with revenues 14 per cent higher as more passengers secured their holidays, Saga said.

However, the company flagged that conditions have remained challenging in the insurance sector, with inflation continuing to put pressure on its business costs.

Atom Bank will become the latest lender to abandon its offices because so many employees are working from home.

Chief executive Mark Mullen said attendance at the app-based bank’s headquarters in Durham is only at a third of previous levels and it will look for a new location in the North East of England.

Vertu Motors expects Britain’s zero emissions vehicle mandate to create ‘volatility’ in the new car market, reducing the supply of new petrol and diesel vehicles and driving second-hand prices higher.

The zero emission vehiclemandate sets out the percentage of new zero emission cars and vans manufacturers will be required to produce each year up to 2030.

Government targets want 80 per cent of new cars and 70 per cent of new vans sold in Britain to be zero emission by 2030, increasing to 100 per cent by 2035.

It came as Vertu reported solid new and used car sales volumes growth ahead of its annual general meeting, with the dearlership group on track to meet full-year expectations.

Boss Robert Forrester said:

‘I am pleased to report that trading remains positive. 

‘Used car pricing has remained stable and we have gained market share in the new retail and Motability car market and delivered strong like-for-like volume growth in used vehicles. 

‘The performance of our high margin aftersales business has remained strong.’