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Vertu Motors PLC (VTU)

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Tuesday 07 June, 2022

Vertu Motors PLC

Share buyback programme

RNS Number : 9111N
Vertu Motors PLC
07 June 2022
 

7 June 2022

Vertu Motors plc

 

("Vertu Motors" or the "Company")

 

Share buyback programme

 

Following the success of the £3 million buyback programme announced in March 2022, which has so far resulted in the purchase and cancellation of 5,305,651 ordinary shares of 10p each ("Ordinary Shares") at a total cost of £2,987,610, the Company announces that it intends to commence a further £3 million share buyback programme (the "Buyback Programme"). 

 

Under the Buyback Programme, the Company will seek to buy back its Ordinary Shares using the Company's existing cash resources for a further amount up to £3 million. The debt capacity of the Company, current net cash position and positive cash flow is such that we will also continue to pay dividends and consider acquisition and investment opportunities as part of its ongoing capital allocation.

 

The Company will seek to buy back its Ordinary Shares at appropriate times and considers, at the present time, the Buyback Programme to be in the best interests of all shareholders. 

 

The Company has entered into an agreement for its broker Zeus Capital Limited ("Zeus Capital") to carry out purchases of its Ordinary Shares under the Buyback Programme on its behalf. As and when requested to do so by the Company, Zeus Capital will then seek to purchase Ordinary Shares with total purchases over the programme up to a maximum value of £3 million (the "Maximum Amount").

 

The share repurchases will be carried out on the London Stock Exchange and will be effected within certain pre-set parameters and in accordance with the Company's general authority to purchase its Ordinary Shares granted by its shareholders (subject to renewal at the 2022 AGM). The total maximum number of Ordinary Shares to be purchased under the Buyback Programme is 15 million. Share repurchases may be undertaken until the earlier of the Maximum Amount being repurchased and 28 February 2023. Any Ordinary Shares repurchased will be cancelled.

 

The Company will make further announcements in due course following the completion of any share repurchases.

 

The Buyback Programme, the purpose of which is to reduce the Ordinary Share capital of the Company, will also be effected within the parameters of the Market Abuse Regulation 596/2014/EU and the Commission Delegated Regulation 2016/1052/EU, each as incorporated into UK domestic law by the European Union (Withdrawal) Act 2018. 

- Ends -

For further information please contact:

 

Vertu Motors plc

Tel: 0191 491 2121

Robert Forrester, CEO

 

Karen Anderson, CFO


Zeus Capital Limited

Tel: 020 3829 5000

Jamie Peel

Andrew Jones

Dominic King


Camarco

Tel: 020 3757 4983

Billy Clegg

Tom Huddart


 

Notes to Editors

Vertu Motors is the fifth largest automotive retailer in the UK with a network of 160 sales outlets across the UK. Its dealerships operate predominantly under the Bristol Street Motors, Vertu 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 156 franchised sales outlets and 4 non-franchised sales operations from 121 locations across the UK.

 

Vertu's Mission Statement is to "deliver an outstanding customer motoring experience through honesty and trust".

 

Vertu Motors Group websites - investors . vertumotors . com / www.vertucareers.com

 

Vertu brand websites - www.vertumotors.com / www.bristolstreet.co.uk / www.macklinmotors.co.uk / www.vertumotorcycles.com

 

 

 

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