Reg Vardy profits rocket

Cheaper cars have driven sales higher

A massive boom in UK car sales, fuelled by lower prices, sent the car dealer Reg Vardy's profits soaring last year.

The group is well placed to take advantage of acquisition opportunities

Sir Peter Vardy
Chairman

"Cars are cheaper and folks are buying new cars rather than used cars because interest rates are low and they have more spending power," said chairman Sir Peter Vardy.

Reg Vardy said its pre-tax profits rose 61% to £15.2m ($21.9; 24.6 euros) during the six months to 31 October.

And the company says the future is looking bright too, as it expects new anti-pollution laws to convince many drivers to ditch their company cars because new taxes would mean they would be better off buying private cars.

Expansion plans

Reg Vardy's recent sales success helped convince Sir Peter and his staff to aim high going forward.

Reg Vardy aims to double its size in the UK, possibly by buying a major car dealer, Sir Peter said.

"The group is well placed to take advantage of acquisition opportunities as our industry looks forward to a period of further consolidation," Sir Peter said.

Currently, the group has a 3-7% market share for Ford, Vauxhall, Renault, Fiat, Nissan, Citroen and Volkswagen.

Reg Vardy is aiming to boost its market share to 10%.

Reg Vardy's share price, which has doubled in three years, fell 2.5% in early trading as investors cashed in on a pre-statement rise in the stock.