Vertu Motors PLC Pre-close trading update (5146P)

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RNS Number : 5146P

Vertu Motors PLC

01 September 2017

1 September 2017

Vertu Motors plc

("Vertu Motors" or the "Company")

Pre-close trading update

Vertu Motors, the automotive retailer with a network of 124 sales and aftersales outlets across the UK, is pleased to provide an update on trading before entering a close period.

Since the trading update provided at the Annual General Meeting held on 26 July 2017, the Group has continued to trade in line with the trends set out in that update and in line with market expectations.

On 31 August 2017 the Group disposed of its freehold Jaguar Land Rover dealership property in Leeds ("the Property") to a client of Aberdeen Standard Investments, and entered into a sale and leaseback commitment for 15 years on the Property. The consideration for the sale of the Property, settled in cash, was GBP14m and the book value of the Property was GBP10m. The profit on the sale will be accounted for as an exceptional profit in the Group's financial statements.

The Group's Chief Executive Officer, Robert Forrester, commented as follows:

"Our trading continues as expected. The sale and leaseback transaction realises a significant gain on a flagship dealership property and releases additional funds for investment in growth opportunities. We continue to ensure efficient allocation of capital through the share buy-back programme and strategic management of our property portfolio, which was stated at GBP182m in the Group balance sheet at 28 February 2017, realising value where it is appropriate to do so."

The Group will announce its results for the six months ended 31 August 2017 on 11 October 2017.

For further information please contact:

 
 Vertu Motors plc            Tel: [phone] 
  Robert Forrester, CEO       Tel: [phone] 
  Michael Sherwin, CFO 
 Canaccord Genuity Limited   Tel: [phone] 
  Bruce Garrow 
  Chris Connors 
  Richard Andrews 
                             Tel: [phone] 
   Zeus Capital Limited 
   Dominic King 
                             Tel: [phone] 
   Camarco 
   Billy Clegg 
   Tom Huddart 
 

Notes to Editors

Vertu Motors, the UK automotive retailer with a proven growth strategy, is the sixth largest automotive retailer in the UK with a network of 124 sales outlets across the UK. Its dealerships operate predominantly under the Bristol Street Motors, Vertu, Farnell 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 121 franchised sales outlets and 3 non-franchised sales operations from 104 locations across the UK.

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

Vertu brand websites - 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

This information is provided by RNS

The company news service from the London Stock Exchange

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September 01, 2017 02:00 ET (06:00 GMT)