Vertu Motors Leeds dealershipVertu Motors Leeds dealership

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Investment company CIP Merchant Capital buys 1.5m shares in Vertu Motors

  • Purchase amounts to about 0.42 per cent of share capital
  • New and used car dealership group seen as ‘strong opportunity’ for shareholders
  • Transformation of business model is praised

 

Time 6 months ago

An investment company has snapped up more than 1.5m shares in Vertu Motors, it was revealed today (May 4).

Guernsey-based CIP Merchant Capital said in announcement issued via the London Stock Exchange that it had bought 1,549,924 ordinary 10p shares in the new and used car dealership group.

That gives it about 0.42 per cent. of Vertu’s issued share capital. The purchase cost it approximately £625,553.

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In the announcement, CIP highlighted how quickly Vertu had developed an omni-channel approach to sales to private customers, adding that it was at the sector’s forefront.

‘The CIP board believes that this transformation of its business model puts Vertu in a strong position to benefit from the UK economy’s recovery phase,’ it said.

‘For this reason, whilst it is noted that Vertu operates outside of the core target investment sectors stated within the company’s investing policy, Vertu nevertheless meets a number of the company’s other key investment criteria in line with its investing policy.’

Because of that, Vertu was ‘a strong opportunity to create shareholder value’.


CIP reflected on Vertu’s £334m.1 gross profit and £16.5m operating profit on £3.1bn revenue for the financial year ending February 29, 2020.

Vertu has predicted that its full-year results for the financial year to February 28, 2021 will see it make a pre-tax profit of around £23m.

Those results are due out on May 12.

Vertu Motors poised to grow even further as update reveals £23m profit target despite three national lockdowns

John Bowman's avatar

John has been with Car Dealer since 2013 after spending 25 years in the newspaper industry as a reporter then a sub-editor/assistant chief sub-editor on regional and national titles. John is chief sub-editor in the editorial department, working on Car Dealer, as well as handling social media.

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