Vertu to sell £12m surplus property

The AIM-listed group, number 11 in the Motor Trader Top 200, held its first AGM on Thursday (30 August 2007) where chief executive Robert Forrester reported strong new and used volumes in the business.

“We have a surplus of properties with estimated proceeds and book value of around £12m. A number of these properties are conditionally contracted for sale,” said Forrester, adding that he hoped their disposal would be finalised by the first half of 2008.

He said the money raised would be used for debt reduction and could pay for more acquisitions. Forrester said shutting the old Bristol Street and Blakes Group head offices, together with economies of scale, had resulted in cost savings.

He said internet facilities for Bristol Street and Motor Nation had been improved.

“A new internet offering will be launched in September and a contact centre is being created in Sunderland to handle all the contacts generated.

“The board envisages that this new centralised internet strategy will help the group to achieve its objective of increasing the level of new and used car sales.”

From April to July he said Bristol Street dealerships enjoyed a 7.8 per cent rise in private new car sales, whilst used car volumes were up 8 per cent over the same period, despite flat volumes in the wider used sector.

Forrester said that the “significant management changes” brought in at some “under performing” dealerships, meant that this process was now largely complete.

The group, which has 46 sites, sells Citroen, Ford, Honda, Peugeot, Renault and Vauxhall models, along with Iveco commercials.