Farnell integration on track for Vertu

Vertu Motors, the company that bought the Yorkshire-based Farnell partnership for £31m in May, said market conditions are good and it has seen growth in new car sales and stability in used car prices.

The group said it is pleased with the pace of integration and the performance of the Farnell Land Rover business and said the firm will make a significant contribution to the group this year.

Farnell is a long-established Land Rover dealership with sites in Leeds, Bradford and Guiseley.

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Vertu said it is confident further progress will be made during the remainder of the financial year.

Chief executive Robert Forrester said: “Service operations in the group continue to exhibit growth as a consequence of higher levels of customer retention.”

The group will announce its half year results on October 16.

The Farnell acquisition was Vertu’s biggest to date and the company is on the hunt for further deals.

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Mr Forrester, the former finance director and managing director of Reg Vardy, described the deal as the most significant moment in the company’s history after its acquisition of Bristol Street Motors.

“Farnells is such a strong proposition because it offers a great product and values customer service,” he said.

Farnell’s Leeds dealership won the best Land Rover dealership in 2012 and in 2011, the accolade went to Farnell’s Bradford dealership.

In the year to February 28, Vertu said total revenue increased by 15.7 per cent year-on-year, to £1,259m, with like-for-like revenue up six per cent.

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During this period it sold around 95,000 new and used vehicles, opened 20 new outlets and closed 12.

Vertu is the sixth largest automotive retailer in the UK with a network of 97 sales and aftersales outlets across the UK. Its dealerships operate under the Bristol Street Motors, Vertu Honda, Vertu Volkswagen, Farnell Land Rover and Macklin Motors brand names.

It was set up in 2006 with a strategy to consolidate the motor retail sector.