North East motor retailer Vertu Motors has announced the launch of a new share-buyback programme of up to £3m.
The firm announced a buyback programme in March, which has so far resulted in the purchase and cancellation of more than five million shares at a cost of £2.98m – a programme which followed a similar buyback last November which saw the firm purchase £2.99m of its shares.
Vertu says it will now seek to buy back more of its ordinary shares, using the company’s existing cash resources, for a further amount up to £3m. It said the firm’s debt capacity, net cash position and positive cash flow means it will also continue to pay dividends and consider acquisition and investment opportunities.
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The stock market announcement added: “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.”
Last month the firm announced on the Stock Market that directors had strengthened their holdings in the Gateshead business.
CEO Robert Forrester acquired a further 39,297 shares, taking his total shares to 7,483,478 equating to 2.09% of its share capital. Chief financial officer Karen Anderson and chief operations officer David Crane also each exercised options over 30,000 ordinary shares last month, under the Vertu Company Share Option Plan.
The continuation of the share buyback programme follows the firm hailing “unprecedented” trading conditions, resulting in record full year results driven by well-publicised sector tailwinds, which has seen demand far outstrip supply in both the new and used car markets.
Vertu posted record full year sales of £3.6bn and pre-tax profits of £80.7m – a rise of 228% – for the year to February 28, 2022.
The firm – which trades under the Bristol Street Motors, Vertu Motors and Macklin Motors banners – now runs 160 franchised dealerships and aftersales outlets across the country.
