Last checked at 1 Sep 2017 07:00
1 September 2017
Vertu Motors plc
("Vertu Motors" or the "Company")
Pre-close trading update
Vertu Motors, the automotive retailer with a network of 124 sales and aftersales outlets across the UK, is pleased to provide an update on trading before entering a close period.
Since the trading update provided at the Annual General Meeting held on 26 July 2017, the Group has continued to trade in line with the trends set out in that update and in line with market expectations.
On 31 August 2017 the Group disposed of its freehold Jaguar Land Rover dealership property in Leeds ("the Property") to a client of Aberdeen Standard Investments, and entered into a sale and leaseback commitment for 15 years on the Property. The consideration for the sale of the Property, settled in cash, was £14m and the book value of the Property was £10m. The profit on the sale will be accounted for as an exceptional profit in the Group's financial statements.
The Group's Chief Executive Officer, Robert Forrester, commented as follows:
"Our trading continues as expected. The sale and leaseback transaction realises a significant gain on a flagship dealership property and releases additional funds for investment in growth opportunities. We continue to ensure efficient allocation of capital through the share buy-back programme and strategic management of our property portfolio, which was stated at £182m in the Group balance sheet at 28 February 2017, realising value where it is appropriate to do so."
The Group will announce its results for the six months ended 31 August 2017 on 11 October 2017.
For further information please contact:
Vertu Motors plcRobert Forrester, CEOMichael Sherwin, CFO | Tel: 0191 491 2111Tel: 0191 491 2112 |
Canaccord Genuity Limited Bruce GarrowChris ConnorsRichard Andrews | Tel: 020 7523 8000 |
Zeus Capital LimitedDominic King | Tel: 020 3829 5000 |
Camarco Billy Clegg Tom Huddart | Tel: 020 3757 4983 |
Notes to Editors
Vertu Motors, the UK automotive retailer with a proven growth strategy, is the sixth largest automotive retailer in the UK with a network of 124 sales outlets across the UK. Its dealerships operate predominantly under the Bristol Street Motors, Vertu, Farnell 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 121 franchised sales outlets and 3 non-franchised sales operations from 104 locations across the UK.
Vertu Motors Group websites - www.vertumotors.com / www.vertucareers.com
Vertu brand websites - www.bristolstreet.co.uk / www.vertuhonda.com / www.vertutoyota.com / www.macklinmotors.co.uk / www.farnelllandrover.com / www.farnelljaguar.com / www.vertuvolkswagen.com / www.vertumercedes-benz.com