Vertu secures £70m expansion funding
Vertu Motors will accelerate expansion plans after securing a banking facility worth up to £70m.
Already the fourth-largest company in the north east by takeover, with 125 sales and aftersales outlets across the UK, Vertu has not revealed acquisition targets.
The deal with Barclays and The Royal Bank of Scotland includes £40m up front with the potential for a further £30m. Vertu said it would ‘provide the group with the financial capacity to continue to expand the group’s dealership portfolio as opportunities arise.’
Vertu reported a revenue increase of 16.6% last year, after acquiring five outlets in Derbyshire for £18.7m. The deal involved acquiring the entire issued share capital of Gordon Lamb Group Ltd, which operated Toyota, Land Rover, Skoda and Nissan outlets in Chesterfield and the Skoda outlet in Derby.
Robert Forrester, chief executive of Vertu said, ‘We are delighted with the Group’s performance during the period, particularly in used vehicles and our high margin aftersales business and we expect our full year results to show continued growth in revenues and profits.
‘Vertu has an excellent team, a strong balance sheet and a proven growth strategy, and as such the board is confident of the group’s future prospects.’