FAST-GROWING motor dealership group Vertu today announced a fall in profits during what it said has been a challenging half-year with subdued consumer spending.

The Newcastle-based business, which has 82 branches nationwide mainly trading under the Bristol Street Motors name, said pre-tax profits dipped by 16% to £4.1m in the six months to the end of August from £4.9m a year earlier.

However, revenues were up by 7% to £547m from £511.1m, reflecting the “substantial” growth in the business over the last 12 months.

Chief executive Robert Forrester said: “I am pleased to report that against the backdrop of continued pressure on the UK consumer, the Group has continued to deliver and invest in its growth strategy.

“We have opened a further seven sales outlets since March 1 2011 taking the total to 82.  In addition, our new like-for-like retail car volumes were 10% better than the market and after sales continues to be robust.  The group continues to generate substantial amounts of cash.”

Vertu said that duew to “market challenges”, its full year results are likely to be at lower end of the range of market expectations.