Vertu Motors Plc (LON:VTU), the AIM listed motor retailer, has acquired a Peugeot business in Dunfermline through the purchase of trade and certain assets from Hardie Motor Group. The property is leasehold and the consideration for this acquisition, representing predominantly vehicle stock, is not expected to exceed £300,000. This will be settled in cash from existing resources.

In the year ended December 31 2009, the unaudited management accounts of the Dunfermline Peugeot business showed turnover of £3.5m and a small operating profit. Vertu said it anticipated that the acquisition would be earnings enhancing in the first full year of ownership.

The latest deal is the eighth Peugeot dealership to be added to Vertu’s portfolio and will bring the total number of sales outlets in operation to 69. The group is already represented in Dunfermline with its Dunfermline Auto Centre business.

Robert Forrester, Vertu’s chief executive, said: “We are delighted to expand further with Peugeot, which we believe is very well positioned with its exciting and expanding product range. This new Peugeot dealership is excellently located, and adds to our brand's presence in Scotland following our purchase of Paisley Peugeot in April. The new business will trade as Macklin Motors, and represents our seventh sales outlet to be purchased in Scotland during 2010. In addition, we will shortly be rebranding the Dunfermline Auto Centre business purchased in January 2010 to the Macklin Motors name.”

Last week Vertu reported that trading in the six months to August 31 had been encouraging and that pre-exceptional profit was on course to be materially ahead of the same period last year. The company predicted that it would meet full year performance expectations and remained in a strong position to undertake further consolidation activity. Over the summer, Vertu exchanged contracts to acquire two dual franchised Ford and Mazda dealerships in Glasgow and Hamilton, Scotland. That was followed by two Vauxhall dealerships in Crewe and Macclesfield and later a SEAT business in Derby.

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