Vertu now Honda's largest 05 | 12 | 2012

GATESHEAD-BASED VERTU MOTORS, which operates operates seven dealerships in Scotland under its Macklin banner, has become Honda's largest retailer for the brand in the UK after completing the purchase of a number of new dealerships.

The company has bought the trade and assets of leasehold Honda dealerships in Newcastle, Durham and Sunderland, from Springfield Cars, for £3.7m.

A figure of £800,000 is included in the total consideration for goodwill. Springfield has also invested £300,000 cash in 797,872 Vertu Motors shares at 37.6p per share, under an undertaking not to sell these within 12 months.

According to Vertu, the 2011 accounts for the acquired businesses showed a turnover of £29.2m and operating profit before tax and interest of £0.3m.

Vertu continues Scottish expansion

The dealerships, simply due to the timing of the purchase, are expected to make a small loss in the three months to the end of the Group’s current financial year. They are forecast to become earnings enhancing in the year to February 2014.

The Durham and Sunderland dealerships will be leased from Springfield.

"We are pleased to have acquired these Honda dealerships in the North East," Robert Forrester, CEO of Vertu Motors, said.

"We will integrate these new sites into our existing portfolio of Honda dealerships which is already well established in the East Midlands and Yorkshire, with a strong operational management team.”

"We are delighted to be growing our representation with Honda, and in so doing, becoming their most significant franchise partner in the UK.

"These are well established businesses, and we are confident that they will quickly generate a positive return for the Group."

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Jim McGill