Vertu Regulatory News (VTU)

11 Apr 2008 07:00

Vertu Motors PLC11 April 2008 11th April 2008 Vertu Motors plc ("Vertu" or the "Company") Notice of General Meeting Vertu, the 10th largest UK motor retail business, has today sent a circular toshareholders providing formal notice of a general meeting to propose a SpecialResolution for the grant of authority to enable the Company to purchase up to10% of its own ordinary shares of 10 pence each in the market. The directors consider that the current share price of Vertu Motors plcundervalues the Company. This presents an opportunity for the Company toenhance its earnings per share through the purchase of its own shares. It is thedirectors' intention only to exercise the authority to purchase the Company'sown shares where they believe that it would increase the earnings per share ofthose shares that are not re-purchased. In the interim results announcement released on 7 November 2007, the Companystated it had surplus properties with an estimated book value of £12 million andthat proceeds from the disposal of these properties would be used to both reducedebt levels and to fund the further expansion of the Company. It is nowintended that a small proportion of these property disposal proceeds, togetherwith some of the operating cash inflow from the underlying businesses, may beutilised to fund a share buy back programme. This proposal does not change the Company's stated strategies of pursuingfurther acquisitions, in the form of franchised motor dealerships and used caronly operations, together with the focused organic growth of its existingbusinesses. The general meeting will take place at 10:00am on Friday 9th May 2008 at theoffices of Muckle LLP, Time Central, 32 Gallowgate, Newcastle upon Tyne, NE14BF. Ends For further information, call: Vertu Motors plc Robert Forrester, CEO Karen Anderson, FD 0191 206 4617 0191 298 6514 Brewin Dolphin Investment Banking Andrew Kitchingman/Sean Wyndham-Quin 0845 270 8613 Financial Dynamics Jonathon Brill/Billy Clegg/Edward Westropp/Alex Beagley 020 7831 3113 Notes to editors Vertu Motors is the 10th largest motor retailer in the United Kingdom with 47dealerships forming a national network across England, operating under theBristol Street Motors and Bristol Street Motor Nation brands. Manufacturingpartners include Citroen, Ford, Iveco, Honda, Peugeot, Renault, Vauxhall, FiatCommercials and Hyundai. Vertu Motors was established in November 2006 with the aim of consolidating theUK motor retail sector. The company listed on AIM in December 2006 and raised£25m. The Executive Directors are experienced within the sector, havingpreviously held senior positions within Reg Vardy. In March 2007, the Group acquired the 13th largest motor retailer in the UnitedKingdom, Bristol Street Motors. In the summer of 2007, Vertu acquired BlakeHoldings Limited, Grantham Motor Company Limited and a Ford dealership inMorpeth, Northumberland. In March 2008 the Group opened a new Bristol StreetMotor Nation outlet in Doncaster. It is intended that the Company will continue to acquire motor retail operationsin the form of franchised dealerships and used car only operations. TheCompany's acquisition strategy is supplemented by a focused organic growthstrategy to drive operational efficiencies through the national network. www.vertumotors.com This information is provided by RNS The company news service from the London Stock Exchange