Vardy wants new dealer in clutches

Robert Lea12 April 2012

MOTOR dealer groups are on the alert after leading player Reg Vardy gave its strongest indication yet that it is close to a significant takeover.

Chairman Sir Peter Vardy said his preferred option is the acquisition of a group with £500m of sales from up to 30 dealerships. 'We have one or two in mind,' he said, with the trigger for a deal likely to be confirmation of new Europe-wide motor dealing rules expected from Brussels in a fortnight.

Three quoted dealers - Dixon Motors, Sytner and Quicks - have fallen into other hands this year. 'That has pushed up prices and is upsetting for us as a buyer,' said Vardy.

With net debt of just £39 million, Vardy has plenty of headroom to gear up for expansion after another strong year on the forecourt.

Strong sales of the BMW Mini and Jaguar Xtype helped sales of upmarket marques soar by 56%. Pre-tax profits for the year to end-April rose a third to £32m on turnover of £1.4bn. The dividend rises 1p to 13p.

WHITE van hire group Northgate is within months of expanding onto the Continent with an acquisition of a rental operator in France or Spain. Northgate reported a 17% leap in profits to £31m in the year to end-April. The dividend is up 1p at 15p.

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