Last checked at 27 Jul 2009 11:39
27 July 2009
Vertu Motors plc
("Vertu Motors" or the "Group")
Acquisition and Property Disposal
Vertu Motors plc, the 9th largest UK motor retailer, announces that the Group today acquired the trade and assets of Ilford Vauxhall and Chevrolet from Crown Motors (Dagenham) Limited for cash consideration of approximately £0.08m. The premises are leasehold and no capital expenditure is required, however, further working capital will be injected. The Ilford business complements the newly opened Vauxhall operation in Waltham Cross and brings the total number of Vauxhall dealerships operated by the Group to six. This transaction also brings the Chevrolet franchise to the Group for the first time.
In addition, the Group today announces the sale of a vehicle storage compound in Tewkesbury, Gloucestershire for a cash consideration of £800,000. The compound is a non-core freehold property. This fixed asset has a book value of £945,000 and consequently a loss of £145,000 will arise on the transaction. The net proceeds from the sale will be utilised to reduce bank loans in line with the Group's banking arrangements.
Robert Forrester, CEO of Vertu Motors plc said:
"We are pleased to add a further business to the Group bringing our total number of dealerships up to 52. The Ilford Vauxhall business fits in well with the newly opened Vauxhall dealership in Waltham Cross. In addition, we are delighted to introduce the Chevrolet franchise to the Group for the first time.
"The acquisition strengthens the regional concentration of the Bristol Street Motors brand in the London area and complements our existing businesses in Waltham Cross, Harlow, Bromley and Orpington."
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For further information please contact:
| Vertu Motors plc | |
| Robert Forrester, CEO | Tel: 0191 206 4617 |
| Karen Anderson, FD | Tel: 0191 298 6514 |
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| Brewin Dolphin Investment Banking |
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| Andrew Kitchingman | Tel: 0845 270 8613 |
| Sean Wyndham-Quin |
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| Panmure Gordon (UK) Limited |
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| Andrew Burnett | Tel: 020 7459 3600 |
| Stuart Gledhill |
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| Financial Dynamics |
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| Caroline Stewart | Tel: 020 7831 3113 |
| Edward Westropp |
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Notes to editors
Vertu Motors is the 9th largest motor retailer in the United Kingdom with 52 dealerships forming a national network across England, operating under the Bristol Street Motors and Bristol Street Motor Nation brand names. Manufacturing partners include Citroen, Ford, Iveco, Honda, Hyundai, Mazda, Peugeot, Renault, Vauxhall and Chevrolet.
Vertu Motors was established in November 2006 with the aim of consolidating the UK motor retail sector. The company listed on AIM in December 2006. In March 2007, the Group acquired the 13th largest motor retailer in the United Kingdom, Bristol Street Motors.
Senior management are experienced within the sector, having previously held senior positions within Reg Vardy and CD Bramall. The Group has consistently outperformed the market since its first acquisition.
The Group currently operates 48 franchised sales outlets, 4 non-franchised sales operations and 2 stand alone service operations from 48 locations. It is intended that the Company will continue to acquire motor retail operations to grow a scaled dealership group. The Company's acquisition strategy is supplemented by a focused organic growth strategy to drive operational efficiencies through the national network.
www.vertumotors.com
www.bristolstreet.co.uk
www.vertuhonda.com
www.motornation.co.uk