Acquisition of Dunfermline Pe

RNS Number : 4578S

Vertu Motors PLC

10 September 2010

 



10 September 2010

Vertu Motors plc

("Vertu Motors" or the "Group")

Acquisition of Dunfermline Peugeot

Vertu Motors plc, the 8^th largest UK motor retailer, is pleased to announce that it has acquired a Peugeot business in Dunfermline through the purchase of trade and certain assets from Hardie Motor Group.  The property is leasehold and the consideration for this acquisition, representing predominantly vehicle stock, is not expected to exceed £300,000.  This will be settled in cash from existing resources. 

In the year ended 31 December 2009, the unaudited management accounts of the Dunfermline Peugeot business showed turnover of £3.5m and a small operating profit.  The Board anticipates that the acquisition will be earnings enhancing in the first full year of ownership.

This acquisition is the eighth Peugeot dealership to be added to the Group's portfolio and will bring the total number of sales outlets in operation to 69.  The Group is already represented in Dunfermline with its Dunfermline Auto Centre business.

Robert Forrester, CEO of Vertu Motors said:

"We are delighted to expand further with Peugeot, which we believe is very well positioned with its exciting and expanding product range.  This new Peugeot dealership is excellently located, and adds to our brand's presence in Scotland following our purchase of Paisley Peugeot in April. 

"The new business will trade as Macklin Motors, and represents our seventh sales outlet to be purchased in Scotland during 2010.  In addition, we will shortly be rebranding the Dunfermline Auto Centre business purchased in January 2010 to the Macklin Motors name.

"The Group has made a substantial number of acquisitions in the last year, which have been integrated into the Vertu Motors management and systems platform, and are on track to provide a significant boost to the Group's long term profitability.  The acquisition we announce today adds to our continued development."

- Ends -

For further information please contact:

Vertu Motors plc Robert Forrester, CEO Michael Sherwin, FD	Tel: [phone]
Brewin Dolphin Corporate Advisory and Broking Alexander Dewar	Tel: [phone]
Panmure Gordon (UK) Limited Andrew Burnett	Tel: [phone]
Financial Dynamics Caroline Stewart	Tel: [phone]

Notes to editors

Vertu Motors plc is the 8th largest motor retailer in the United Kingdom with 69 sales outlets forming a national network, operating predominantly under the Bristol Street Motors, Bristol Street Motor Nation, Vertu Honda and Macklin Motors brand names. Manufacturer partners are Citroen, Ford, Iveco, Honda, Hyundai, Mazda, Peugeot, Renault, Vauxhall, Chevrolet, Fiat, Alfa Romeo and SEAT.

Vertu Motors was established in November 2006 with the aim of consolidating the UK motor retail sector.  The Group listed on AIM in December 2006.

The Group currently operates 65 franchised sales outlets, 4 non-franchised sales operations and 2 stand alone service operations from 59 locations.  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.

www.vertumotors.com

www.bristolstreet.co.uk

www.vertuhonda.com

www.motornation.co.uk

www.vertucareers.com

www.macklinmotors.co.uk

 

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