Car dealer Vertu Motors slammed for retaining furlough cash despite plans to pay dividends to shareholders
Car dealer Vertu Motors has been slammed for retaining furlough cash despite plans to pay dividends to shareholders.
The firm, whose brands include Bristol Street Motors, last week declared a 0.65p per share payout after profits soared due to pent-up demand fuelling rises in car prices.
In the fast lane: Vertu declared a 0.65p per share payout after profits soared due to pent-up demand fuelling rises in car prices
Vertu claimed £400,000 this financial year and £28million last, which it has retained.
One senior industry executive described the dividend decision as ‘just not acceptable’. Rivals including Inchcape and Marshall Motors have paid back Government support.
Marshall Motors boss Daksh Gupta declined to comment directly on Vertu, but said: ‘We were the first group to pay it back and others followed our lead. To make super profits by taking taxpayer money and benefiting massively from Covid-related tailwinds feels wrong. We said we would not pay a dividend without paying back the support.’
Vertu declined to comment.