26 July 2017 – agm statement
A detailed trading update has been released to coincide with the company’s AGM. There was strong performance in the plate change month of March followed by softer trading in April, May and June due to less favourable market conditions. The company attributes this weakness to the Vehicle Excise Duty increase in April, the impact of sterling depreciation on new vehicle pricing and customer uncertainty regarding the General Election and the macroeconomic environment. However, like-for-like profits increased in the four months to 30 June. At this stage, trading performance for the year ending 28 February 2018 is set to be in line with market expectations. The company is looking to use up to £3.0m to buy back shares and this should offer some support. We continue to believe that the shares are fundamentally undervalued. BUY.