Vertu Motors speeds off

Vertu Motors saw its share price rise to 77.5p today, up almost 25% since its IPO on AIM on the 20th December.

The F&C UK Dynamic fund, managed by Makis Kaketsis, took a large stake in the company back in December. Kaketsis said he expected the company to grow significantly in size under the management of chief executive Robert Forrester, former managing director and finance director at Reg Vardy, and non-executive chairman William Teasdale, who was a former non-executive director of Reg Vardy.

"There have been many acquisitions in the motor retail sector but if you consider that Pendragon, which is by far the largest motor retailer in the UK, only has 6% market share, there is still room for greater consolidation of the market. With the backing and expertise of former Vardy management, Vertu Motors is in a great position to do that," said Kaketsis.

"In addition, Vertu Motors' key strength is its focus which is not limited to new car sales but used car sales and the after sales market as well. This could potentially provide more stable margins over the medium term as they act as a safety net in the event of an economic downturn. When times are hard, people are more likely to buy used cars and all cars, whether brand new or old, will at some point need to be serviced. "We look forward to supporting the management in expanding the company," concluded Kaketsis.