Vertu begins to scratch the surface

AIM traded Vertu Motors, the motor dealership consolidator launched at the end of 2006 by a team of ex-Reg Vardy executives, has this week announced the acquisition Blake Holdings and with it gained three dealerships and a servicing centre in the Midlands. The deal follows on from Vertu’s reverse takeover of Bristol Street Motors.

Makis Kaketsis, manager of the F&C UK Dynamic Fund, who has backed the company since its IPO, said: “Acquiring Bristol Motors was necessary to attain scale. The interesting stage in the company life cycle begins now - as the group starts using its size to consolidate small sub-scale dealerships and skewing the business towards the used car market where sales are more resilient throughout the economic cycle. This is where the real long term opportunity lies and Vertu is beginning to scratch the surface."

The F&C UK Dynamic Fund is 3.86% invested in Vertu Motors.