Vertu Motors trading in line as is counts property disposal cash

Automotive retailer Vertu Motors updated the market on its trading on Friday, before entering a close period.

The AIM-traded firm said that since the trading update provided at the annual general meeting on 26 July, the group had continued to trade in line with the trends set out in that update and in line with market expectations.

On 31 August, the group disposed of its freehold Jaguar Land Rover dealership property in Leeds to a client of Aberdeen Standard Investments, and entered into a sale and leaseback commitment for 15 years on the property.

The board said the consideration for the sale of the property, settled in cash, was £14m and the book value of the property was £10m.

It claimed the profit on the sale would be accounted for as an exceptional profit in the group's financial statements.

“Our trading continues as expected,” said group CEO Robert Forrester.

“The sale and leaseback transaction realises a significant gain on a flagship dealership property and releases additional funds for investment in growth opportunities.

“We continue to ensure efficient allocation of capital through the share buy-back programme and strategic management of our property portfolio, which was stated at £182m in the group balance sheet at 28 February 2017, realising value where it is appropriate to do so.”

Vertu Motors’ board said it would announce its results for the six months ended 31 August on 11 October.