Reg Vardy upbeat despite tougher market

British motor dealer Reg Vardy today said the car buying market worsened in 2004, but insisted that its prospects remained good.

The Sunderland-based group said purchases by private buyers declined in the six months to October 31 as higher interest rates and concern about house prices took their toll.

Overall, new vehicle registrations declined by 2.9% to 1,307,814 from 1,347,287 in the same period last year, with sales at the high end of the market particularly badly hit.

The fall was reflected in the company’s half year profits, which, at £24.8m (€35.9m), were only slightly higher than last year’s £24.2m (€35m).

However, Vardy said its outlook remained strong based on its “excellent market position”.

It said acquisitions made in the last two years would grow and contribute to the significantly higher margins in its core business, while property profits and growth from other activities such as contract hire and fleet operations would also play a role.

“This, combined with the strong financial position of the group, ensures that the board is confident of sustainable growth in shareholder value,” chairman Sir Peter Vardy said.

Reg Vardy has almost 100 dealerships across the UK and sells most of the major brands including specialist marques Aston Martin, Jaguar and Land Rover.

It also has a contract hire division that leases cars to companies on 36-month deals.