REG - Vertu Motors PLC - Motorcycle Acquisition

Vertu MotorsAnnouncement

01/11/2022 07:17

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RNS Number : 8738E  Vertu Motors PLC  01 November 2022

1 November 2022

Vertu Motors plc ("Vertu Motors" or "Company")

Motorcycle Acquisition

 

Vertu expands its partnership further with BMW Group to become the largest BMW
Motorrad motorcycle retailer in the UK

 

Vertu Motors, the UK Automotive retailer with a network of 164 sales and
aftersales outlets across the UK and a sector leading online presence, is
pleased to announce that on 31 October 2022 it has acquired the business and
assets of two BMW Motorrad outlets in Yorkshire (together the "Business").

The Business has been acquired from Saltaire Motor Company Limited, which
trades as Allan Jefferies. Allan Jefferies has been trading as a family-run
business, spanning four generations over 120 years, since 1901 and has
represented the BMW brand since 1971. The outlets purchased are located in
Shipley, near Bradford, and Rotherham. The Business will be rebranded to trade
under the Vertu brand from the outset and will become part of the Vertu
Motorcycles division, which will operate six motorcycle outlets across
Motorrad and Honda.

For the year ended 29 September 2021, the Business achieved revenue of £20.5m
and an operating profit of £463,000. Total consideration is estimated at
£4.2m, subject to finalisation of completion accounts. The consideration
includes a freehold property value of £1.85m and a payment in respect of
goodwill of £0.5m. This consideration will be paid from the Group's existing
cash resources. Due to the seasonality of motorcycle sales, the Business is
expected to contribute a small loss for the remaining four months of the
financial year and is expected to be earnings enhancing in its first full year
of ownership.

BMW Motorrad is the motorcycles brand of BMW Group. In the full year 2021, it
was the UK market leader in the 'big bikes' category with a 16.6% market
share. Vertu currently operates one Motorrad outlet in Sunderland which it
acquired in 2020; adding the acquired two further outlets will make Vertu the
largest partner in the UK for BMW Motorrad.

Robert Forrester, CEO of Vertu Motors, commented: "Our business is performing
strongly and the addition of two further BMW Motorrad outlets will be
accretive both financially and strategically to the Group. Vertu becomes the
largest partner in the UK for BMW Motorrad."

Paulo Alves, Head of BMW Motorrad UK and Ireland, commented: "We are delighted
to support the acquisition of the excellent Allan Jefferies business in
Yorkshire by Vertu. The Jefferies family have built a fantastic operation and
we are confident that the business will be in good hands. As a leading brand,
our customers take priority and we share this philosophy with Vertu. We
welcome them as our largest partner in the UK."

ENDS

 

 Vertu Motors plc
 Robert Forrester, CEO  Tel: 0191 491 2121
 Karen Anderson, CFO    Tel: 0191 491 2121
 Zeus Capital Limited
 Jamie Peel             Tel: 020 3829 5000

 Andrew Jones

 Dominic King
 Camarco
 Billy Clegg            Tel: 020 3757 4983

 Tom Huddart

 

Notes to Editors

Vertu Motors is the fourth largest automotive retailer in the UK with a
network of 164 sales outlets across the UK. Its dealerships operate
predominantly under the Bristol Street Motors, Vertu, 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 160 franchised sales outlets and 4
non-franchised sales operations from 123 locations across the UK.

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

Vertu Motors Group websites - https://investors.vertumotors.com/
(https://investors.vertumotors.com/) /www.vertucareers.com
(http://www.vertucareers.com)

Vertu brand websites - www.vertumotors.com (http://www.vertumotors.com) /
www.bristolstreet.co.uk (http://www.bristolstreet.co.uk) / www.vertuhonda.com
(http://www.vertuhonda.com) / www.vertutoyota.com (http://www.vertutoyota.com)
/ www.macklinmotors.co.uk (http://www.macklinmotors.co.uk) /
www.vertumotorcyles.com (http://www.vertumotorcyles.com)

 

 

 

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