Last checked at 13 Jun 2023 07:00
13 June 2023
Vertu Motors plc
("Vertu Motors" or the "Company")
Additional Share buyback programme
Following the success of the £3 million buyback programme announced in May 2023, which has so far resulted in the purchase and cancellation of 4,394,332 ordinary shares of 10p each ("Ordinary Shares") at a total cost of £2,703,108, the Company announces that it has agreed a further £3 million share buyback programme (the "Buyback Programme").
Under the Buyback Programme, the Company will seek to buy back its Ordinary Shares using the Company's existing cash resources for a further amount up to £3 million. The debt capacity of the Company, current net cash position and positive cash flow is such that we will also continue to pay dividends and consider acquisition and investment opportunities as part of its ongoing capital allocation.
The Company will seek to buy back its Ordinary Shares at appropriate times and considers, at the present time, the Buyback Programme to be in the best interests of all shareholders.
The Company has entered into an agreement for its broker Zeus Capital Limited ("Zeus Capital") to carry out purchases of its Ordinary Shares under the Buyback Programme on its behalf. As and when requested to do so by the Company, Zeus Capital will then seek to purchase Ordinary Shares with total purchases over the programme up to a maximum value of £3 million (the "Maximum Amount").
The share repurchases will be carried out on the London Stock Exchange and will be effected within certain pre-set parameters and in accordance with the Company's general authority to purchase its Ordinary Shares granted by its shareholders. The total maximum number of Ordinary Shares to be purchased under the Buyback Programme is 30 million. Share repurchases may be undertaken until the earlier of the Maximum Amount being repurchased and 22 September 2023. Any Ordinary Shares repurchased will be cancelled.
The Company will make further announcements in due course following the completion of any share repurchases.
The Buyback Programme, the purpose of which is to reduce the Ordinary Share capital of the Company, will also be effected within the parameters of the Market Abuse Regulation 596/2014/EU and the Commission Delegated Regulation 2016/1052/EU, each as incorporated into UK domestic law by the European Union (Withdrawal) Act 2018.
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For further information please contact:
Vertu Motors plc | |
Robert Forrester, CEO | Tel: 0191 491 2121 |
Karen Anderson, CFO Phil Clark, Investor relations | Tel: 0191 491 2121 PClark@vertumotors.com |
Zeus Capital Limited | |
Jamie Peel Andrew Jones Dominic King | Tel: 020 3829 5000 |
Camarco | |
Billy Clegg Tom Huddart | Tel: 020 3757 4983 |
Notes to Editors
Vertu Motors is the fourth largest automotive retailer in the UK with a network of 189 sales outlets across the UK. Its dealerships operate predominantly under the Bristol Street Motors, Vertu and Macklin Motors brand names.
Vertu Motors was established in November 2006 with the strategy to consolidate the UK motor retail sector. It is intended that the Group will continue to acquire motor retail operations to grow a scaled dealership group. The Group's acquisition strategy is supplemented by a focused organic growth strategy to drive operational efficiencies through its national dealership network. The Group currently operates 185 franchised sales outlets and 4 non-franchised sales operations from 141 locations across the UK.
Vertu's Mission Statement is to "deliver an outstanding customer motoring experience through honesty and trust".
Vertu Motors Group websites - https://investors.vertumotors.com/ /www.vertucareers.com
Vertu brand websites - www.vertumotors.com / www.bristolstreet.co.uk / www.vertuhonda.com / www.vertutoyota.com / www.macklinmotors.co.uk / www.vertumotorcyles.com