7:18 am, November 6, 2021
The price of shares in Vertu Motors shot up by around three per cent yesterday after the dealer group announced a new £3m stock buyback programme.
The firm, led by CEO Robert Forrester, launched a similar scheme in August, which has seen the purchase and cancellation of 4,739,240 ordinary shares.
The scheme has proved such a success, that the Gateshead-based company has now confirmed another programme once the current one has concluded.
In a statement to the London Stock Exchange, the dealer group said it would move forward with the plans following the remaining balance of £243,782 being utilised.
The company also told the stock market that it will continue to consider acquisition and investment opportunities.
The Vertu statement said: ‘Following the success of the £3m buyback programme announced in August 2021, which has so far resulted in the purchase and cancellation of 4,739,240 ordinary shares of 10p each at a total cost of £2,756,218, the company announces that, following the remaining balance of £243,782 being utilised, it intends to commence a further share 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 £3.0m, between the end of the August programme and 28 February 2022.
‘The debt capacity of the Company and positive cash flow is such that we will continue to 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.’
Announced another £3m share buyback programme today having nearly completed first £3m tranche. #buyback #outsiders
— Robert Forrester (@vertumotorsCEO) November 5, 2021
Elsewhere, Vertu boss Forrester also confirmed the dealer group has ended its sponsorship of Yorkshire County Cricket Club.
The Headingley-based outfit is currently embroiled in a high-profile racism case after former captain Azeem Rafiq claimed he had been racially bullied during his two stints at the club.
The club has been heavily criticised for its investigation into the claims, which described racist language used towards Rafiq as ‘banter’.
The likes of Nike, Yorkshire Tea, Tetley’s and Emerald Group have also cut ties with the disgraced county.
We ended our sponsorship yesterday given obvious concerns over Values. See @yorkshirepost
— Robert Forrester (@vertumotorsCEO) November 5, 2021
