AN impressive year from North East car dealer Vertu Motors has seen it post record profits and sales as it prepares to clock up revenues of £1 billon.

Annual results from the Gateshead-based company showed revenues up 22% to £999m. Pre-tax profits also rose by a fifth to £8.4m, and the company instituted a share dividend for the first time in its four-year existence.

Vertu said it will open two more dealerships in Glasgow and Peterlee, County Durham, on July 1, bringing its portfolio of sites to 79.

It now has more than 2,600 staff nationwide and created around 50 jobs in the North East in the financial year to the end of February.

Vertu chief executive Robert Forrester said: “I believe dividends are an important component of shareholder value. We are a cash-generative business and we will be looking for further improvements on dividends as we grow.”

Forrester said the company would pass through the £1 billion sales barrier for the first time in the current financial year, up to February 2012.

Since March 1 last year it has increased its dealership roster from 59 to 77 and is a strong position for further acquisitions with £13.6m of cash and a debt capacity of £35m.

Forrester continued: “We will continue with the strategy of growing through acquiring new dealerships.”

He said he was in discussions about a number of new transactions and expected to add a “handful” of new dealerships before the end of the year. The chief executive said volumes were down so far this year as the boost the industry received from the scrappage was included in the previous year’s figures.

He said March was always going to be down but we were down by 1.2% compared to the industry average of 10%. He remains optimistic.

He said: “The UK is coming out of recession. The availability of finance for consumers and business is better. There has been a 12% increase in van sales. Things are getting better and we are confident enough to invest.”