Vertu snaps up regional dealer in £6m deal

The AIM-listed automotive retailer, which has 193 sales and after-sales outlets across the UK, said on Wednesday that it is buying Honda specialist Rowes Garage in a £6.2m deal.

The 90-year old dealership has outlets in Plymouth, Plymstock and Truro as well as a Suzuki franchised outlet in Plymouth. Vertu said the Suzuki garage would continue as an authorised repairer for the marque upon acquisition but would be refranchised "in due course".

Robert Forrester, chief executive, said: "I am delighted to deliver further expansion for the group in the south west of England. The long-standing, successful Rowes business is a great addition to the group’s 14 existing Honda sales outlets, and increases scale in the south west."

In the year to 31 December 2022, Rowes posted operating profits of £745,000 on revenues of £30.2m. Vertu said the deal, which is being funded by existing cash resources, was expected to be earnings per share accretive in the first full year of ownership. A small trading loss was, however, expected in the financial year to February 2024, due to seasonality.

Separately, Vertu also said on Wednesday that its Companies House records had been falsely amended by a "malicious actor".

The records currently state that several directors have resigned and that two new ones have been appointed. But Vertu said none of the changes had happened, with the board remaining unchanged

It continued: "The company is in the process of liaising with Companies House to have the public record corrected, is seeking a court injunction to prevent any further changes being made to its public records by the malicious actor and is working with Companies House to establish how the malicious actor was able to access Companies House systems to make these changes."