18:00 Mon 07 Dec 2020
Vertu Motors PLC - Acquisition and Trading Update
Vertu Motors plc ("Vertu" or the "Group")
Acquisition and Trading Update
Vertu gains significant BMW and MINI presence through acquisition
Group's trading performance ahead of prior year and original budget
Highlights
· Significant BMW and MINI market area in
· Introduction of the BMW and MINI franchises into the Group's portfolio, with the Group set to benefit from these brands' strong pipeline of electric vehicles
· The businesses will be rebranded to trade as Vertu and the dealerships will be supported by the increasingly successful website, vertumotors.com
· Acquisition adds a total of 12 sales outlets in five locations to the Group's network of
· Asset backed with no significant goodwill
· Estimated cash consideration funded through existing cash resources and a new
· New, brand-experienced management team recruited to drive performance over a three-year period. Group systems and processes are being implemented immediately
· Following record trading results in September, Group's trading performance has remained ahead of prior year and original budget
ACQUISITION
Vertu, the
The
The Business was acquired from The Cooper Group Limited, part of Inchcape plc for total cash consideration of
For the year ended
The acquisition is expected to be at least earnings neutral by the year ending
TRADING UPDATE
Following record trading results in September, the Group's trading performance has remained ahead of prior year and original budget levels. For the financial year to date (being the nine months ended
Overall profit performance has benefited significantly from the continued business rates holiday on showrooms, grants claimed for colleagues furloughed and the impact of cost savings from the previously announced cost reduction programme. It remains uncertain as to whether trading performance for the remainder of the financial year will continue at the level seen year to date, particularly given the potential impact on trading of further COVID-19 restrictions and the impact of Brexit from
"We are delighted to announce the introduction of the much sought after BMW, MINI and Motorrad franchises to the Group, previously a gap in our portfolio of manufacturer partners. The addition of these franchises has long been a strategic objective of the Group. The acquisition achieves immediate scale in a region where the Group is headquartered and already has strong representation.
"The business has previously performed at a high level and it is our intention to ensure that it returns to this previous success delivering both for customers and financially.
"As the Group enters its 15th year of trading, this acquisition reflects a further milestone in both its scale and maturity." The Group now represents 32 franchises in the
"Vertu has been working with BMW Group over a number of years as a potential partner and we are delighted to be able to bring their professionalism and energy into our retailer network. We very much look forward to working closely with Vertu, to ensure customers in the North East and
This announcement contains inside information for the purposes of Article 7 of Regulation (EU) No 596/2014.
For further information please contact:
Vertu Motors plc |
Tel: 0191 491 2121
|
Zeus Capital Limited |
Tel: 020 3829 5000 |
Camarco |
Tel: 020 3757 4983 |
Notes to Editors
Vertu Motors is the fifth largest automotive retailer in the
Vertu Motors was established in
Vertu's Mission Statement is to "deliver an outstanding customer motoring experience through honesty and trust".
Vertu Motors Group websites - www.investors.vertumotors.com / www.vertucareers.com
Vertu brand websites - www.vertumotors.com / 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
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