Trading Update

RNS Number : 2766L

Vertu Motors PLC

03 September 2012

 



3 September 2012

Vertu Motors plc ("the Group")

Trading Update

Continuing Growth

Vertu Motors plc, the fast growing automotive retailer with a network of 82 sales and aftersales outlets across the UK, announces the following update ahead of its Half Year results for the six month period ended 31 August 2012.

Trading Update

Since the Trading Update provided at the Annual General Meeting held on 24 July 2012, the Group has continued to trade in line with market expectations, seeing year-on-year profit growth from new and used vehicle sales and from vehicle servicing.

Portfolio Development

On 31 July 2012 the Group re-franchised the Bristol Street Motor Nation used car outlet in Doncaster to the Honda franchise. This is the Group's sixth Honda car dealership and further extends the Group's contiguous Honda territory, which now stretches from Boston to Doncaster.

On 13 August 2012 the Group introduced the Hyundai franchise to the Mansfield site acquired in June 2012.  This is the Group's fifth Hyundai car dealership and complements the existing operation in Nottingham.

In August 2012 the Group closed two unprofitable accident repair centres, in Stafford and in Dunfermline. The Group now operates eight accident repair centres, all of which are profitable despite continuing volume and margin pressure in the accident repair market.

Investment in growth remains at the top of the Board's agenda, and the Group has a strong pipeline of attractive acquisition opportunities. 

Commenting, Robert Forrester, Chief Executive said

"We are seeing like-for-like year-on-year profit growth from new and used vehicle sales and importantly from vehicle servicing. This has been further bolstered by profit progress from acquisitions we have made in the last few years as they have been integrated into the platform.  We are focused on growth and plan to use our strong balance sheet to make a number of acquisitions in the weeks and months ahead.""

The Group will announce its Half Year results on 17th October 2012.

For further information please contact:

Vertu Motors plc
Robert Forrester, CEO	Tel: [phone]
Michael Sherwin, FD	Tel: [phone]
Panmure Gordon (UK) Limited
Andrew Burnett	Tel: [phone]
Callum Stewart
Espirito Santo Investment Bank
Peter Tracey Jamie Richards	Tel: [phone]
FTI Consulting
Josephine Corbett	Tel: [phone]

Notes to Editors

Vertu Motors is a fast growing automotive retailer with a network of 82 sales and aftersales outlets across the UK.  Its dealerships operate predominantly under the Bristol Street Motors, Vertu Honda and Macklin Motors brand names. Manufacturer partners are Alfa Romeo, Citroen, Fiat, Ford, Honda, Hyundai, Iveco, Mazda, Mitsubishi, Nissan, Peugeot, Renault, SEAT, Suzuki and Vauxhall.

Vertu Motors was established in November 2006 and listed on AIM on December 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 80 franchised sales outlets, 2 non-franchised sales operations from 69 locations across the UK.

Vertu Motors group websites - www.vertumotors.com / www.vertucareers.com

Vertu Motors brand websites - www.bristolstreet.co.uk / www.vertuhonda.com / www.motornation.co.uk / www.macklinmotors.co.uk

 

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