Vertu Regulatory News (VTU)

2 May 2007 07:02

Vertu Motors PLC02 May 2007 2 May 2007 Vertu Motors plc ("Vertu Motors" or the "Company") Acquisition of Blake Holdings Limited ("Blakes") Vertu Motors plc, the acquirer and consolidator of UK motor retail businesses,announces that on 2 May 2007, its subsidiary Vertu Motors (Property) Limitedacquired 100% of the issued share capital of Blake Holdings Limited (the "Acquisition") which comprises three dealerships and a vehicle service centre,for an estimated consideration of £4.9 million. The Blakes operations include a Vauxhall dealership in Chesterfield, a Vauxhallservice centre in Matlock and Peugeot dealerships located in Chesterfield andWorksop. Following completion of the Acquisition it is intended that thebusinesses will assume the Bristol Street Motors brand name, taking the numberof outlets in the Vertu Motors group to 39. The consideration for the Acquisition will be funded from the existing cashresources and banking facilities of the Company together with the issue of up to292,397 ordinary shares in Vertu Motors plc at a price of 85.5p per share with atotal value of up to £250,000. This issue is dependent on the finalisation ofthe level of the net assets at completion. The Directors believe that the Acquisition is a strong strategic and geographicfit with the existing Vertu Motors operations and will complement its existingoperations trading under the Bristol Street Motors brand. The Acquisition is inline with the Company's stated acquisition strategy set out at the time of theIPO in December 2006. Post completion, the Vertu Motors team will work to drive integration andimprovement in margins through the: • roll out of the Bristol Street brand name• improvement of used car sales to improve the used to new car ratio• further development of the internet retail presence• integration of procurement and marketing into the Group In the 12 month period ended 31 December 2006, Blakes reported turnover of £59.7million, with operating profit of £0.4m and profit before taxation of £0.04m.The audited net asset value of Blakes as at 31 December 2006 was £2.3m and as atcompletion has been estimated at £4.4m following the revaluation of threefreehold properties. Robert Forrester, CEO of Vertu Motors said: "We are pleased to have announced our second acquisition since we listed on AIMin December 2006, as we continue to consolidate the highly fragmented UK motorretail market. We continue to look at additional acquisitions and have themanagement and financial firepower to continue the consolidation process. I am confident there are significant growth synergies to be gained from theintegration of the Blakes business into Bristol Street Motors. I look forward todeveloping the business and welcoming all our new colleagues into the Group." Ends - For further information please contact: Robert Forrester, CEO, Vertu Motors plc, Tel: 0191 206 4617 Andrew Kitchingman, Brewin Dolphin Securities, Tel: 0845 270 8613 Jonathon Brill/Billy Clegg/Edward Westropp, Financial Dynamics, Tel: 020 7831 3113 This information is provided by RNS The company news service from the London Stock Exchange