REG - Vertu Motors PLC - Share Buyback Programme

Vertu MotorsAnnouncement

02/03/2022 07:16

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RNS Number : 2827D  Vertu Motors PLC  02 March 2022

2 March 2022

Vertu Motors plc

 

("Vertu Motors" or the "Company")

 

Share buyback programme

 

Following the success of the £3m buyback programme announced in November
2021, which has so far resulted in the purchase and cancellation of 4,622,057
ordinary shares of 10p each ("Ordinary Shares") at a total cost of
£2,999,116, the Company announces that it intends to commence a further £3m
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
£3.0 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 the pursuit of
the ongoing growth of the business.

 

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. Zeus Capital will seek to purchase Ordinary
Shares up to the value of £3.0 million (the "Maximum Amount").  The total
maximum number of Ordinary Shares to be purchased is capped at 30 million,
based upon the nominal value of the Company's Ordinary Shares.

 

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). Share repurchases will 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 159 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 155 franchised sales outlets and 4
non-franchised sales operations from 120 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
(http://www.vertucareers.com)

 

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

 

 

 

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