Vertu Motors to drive up profit with Taxi Centre dealBy Matthew Ord, Digital Staff Writer
Vertu Motors has acquired a Scottish taxi company in a move which is expected to drive profit growth at the group.
The Gateshead-headquartered company acquired The Taxi Centre and Easy Vehicle Finance (together known as the 'Taxi Centre') for a total consideration of an estimated £700,000, of which £200,000 will be settled by the issue of 343,053 ordinary shares in Vertu, as well as £1.1m of goodwill.
For the year end 31 December 2013, the Taxi Centre reported revenue of £9.7m and EBITDA of £400,000. The board said it expects the acquisition to be "earnings enhancing in its first full year of ownership and is confident the Vertu Group will drive future profit growth".
Robert Forrester, chief executive of Vertu, said: "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."
Vertu Motors recently reported a record trading performance in its half year results, with revenue topping £1bn and pre-tax profit almost doubling.