Property Disposal

RNS Number : 7361W

Vertu Motors PLC

03 August 2009

 



3 August 2009            

Vertu Motors plc 

('Vertu Motors' or the 'Group')

Property Disposal

Vertu Motors plc, the 9th largest UK motor retailer, announces that the Group exchanged contracts on the 31 July 2009 for the disposal of a surplus freehold property held within properties for resale. The disposal of the property in Newcastle upon Tyne for £3.9m will complete on 28 August 2009; a cash deposit of £390,000 was received on exchange with the remainder of consideration receivable on completion. The book value of the property was £5.0m and hence an exceptional loss on disposal will arise of approximately £1.1m. The net proceeds from the sale will be utilised to reduce bank loans in line with the Group's banking arrangements.

Robert Forrester, CEO of Vertu Motors plc said:

'The disposal announced today reinforces the Group's very strong Balance sheet, in particular the significant net cash position. This assists the Group in continuing with its stated growth strategy aimed at delivering material shareholder returns in the future.'

- Ends -

For further information please contact:

Vertu Motors plc
Robert Forrester, CEO	Tel: [phone]
Karen Anderson, FD	Tel: [phone]
Brewin Dolphin Investment Banking
Andrew Kitchingman	Tel: [phone]
Sean Wyndham-Quin
Panmure Gordon (UK) Limited
Andrew Burnett	Tel: [phone]
Stuart Gledhill
Financial Dynamics
Caroline Stewart	Tel: [phone]
Edward Westropp

Notes to editors

Vertu Motors is the 9th largest motor retailer in the United Kingdom with 52 dealerships forming a national network across England, operating under the Bristol Street Motors and Bristol Street Motor Nation brand names. Manufacturing partners include Citroen, Ford, Iveco, Honda, Hyundai, Mazda, Peugeot, Renault, Vauxhall and Chevrolet. 

Vertu Motors was established in November 2006 with the aim of consolidating the UK motor retail sector. The company listed on AIM in December 2006. In March 2007, the Group acquired the 13th largest motor retailer in the United Kingdom, Bristol Street Motors. 

Senior management are experienced within the sector, having previously held senior positions within Reg Vardy and CD Bramall. The Group has consistently outperformed the market since its first acquisition.

The Group currently operates 48 franchised sales outlets, 4 non-franchised sales operations and 2 stand alone service operations from 48 locations. It is intended that the Company will continue to acquire motor retail operations to grow a scaled dealership group. The Company's acquisition strategy is supplemented by a focused organic growth strategy to drive operational efficiencies through the national network.

www.vertumotors.com 

www.bristolstreet.co.uk

www.vertuhonda.com

www.motornation.co.uk

 

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