5th Nov 2014 09:20
LONDON (Alliance News) - Vertu Motors PLC on Wednesday said it has struck a deal to buy The Taxi Centre Ltd and Easy Vehicle Finance Ltd for around GBP700,000.
Vertu said the acquisition of the two businesses, based in Paisley in Scotland and which source vehicles for private taxi operators in the UK, would include GBP1.1 million of goodwill.
The GBP700,000 consideration for the business will include GBP200,000 settled through a share issue by Vertu. The company will issue 343,053 shares at 58.3 pence per share.
Vertu said The Taxi Centre made earnings before income, taxation, depreciation and amortisation of GBP400,000 in calendar 2013, on revenue of GBP9.7 million.
"The group is confident that the acquisition of this cash generative business will produce profit enhancing synergy opportunities in the supply of new and used vehicles. We look forward to welcoming the experienced Taxi Centre team into the growing Vertu Group," said Vertu Chief Executive Officer Robert Forrester.
Vertu shares were down 1.7% to 56.75 pence on Wednesday.
By Sam Unsted; [email protected]; @SamUAtAlliance
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