Vertu buys Vans Direct

Well, here's an interesting way to start the day - Vertu has bought Vans Direct. Wow! Who saw that coming?  Key points: 

Vertu has acquired entire share capital of LCV broker Vans Direct Ltd for ￡7.5m.

Business brings significant know-how and accelerates the Group's presence in multi-channel retailing 

Synergy opportunities with existing Vertu LCV businesses.

Immediately earnings enhancing.

Vans Direct has built a successful on-line, van retailing business, putting customers first and winning the 'Best Van Leasing Broker' award from the Leasing Broker Federation for the last three years (2016, 2017 and 2018).

The Vans Direct business was founded in 1999, but flourished following the appointments of Jane Pocock as Managing Director and Richard Simmonds, as Operations Director, of the business in 2009. Simmonds will be joining the Group along with their team of 42 colleagues; Pocock will remain a non-exec director.

For the year ended 31 October 2017, Vans Direct reported revenues of ￡34.6m, a gross margin of 11.7% and EBITDA of ￡1.2m. The Board expects this acquisition to be immediately earnings enhancing.

Robert Forrester, CEO of Vertu Motors said:

"This is an exciting development in a growing space, which is synergistic and parallel to our core motor retail business and which strengthens our multi-channel offering. We expect Vans Direct to generate an earnings stream with higher gross and net margins than those typically earned by the Group, and we believe that the future growth prospects for this new business are significant. By working with the complementary skills of the Vans Direct team and the Group's existing operations, we believe that we can build a significant business which will meet the needs of a wider range of customers."