9:04 am, May 4, 2021
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.
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.
