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Gavin Hydes, the chief executive of Joe Duffy Motors, has increased his stake in the UK’s fourth-largest car dealer to over 5pc. The stake is worth £10m (€12m). Filings for stock market-listed Vertu Motors show that Mr Hydes has increased his stake from 4.
1pc. He has been building his investment in the UK firm since last year. Mr Hydes holds the investment via an Irish company, Nivag Holdings, that he wholly owns.
Nivag crossed the 5pc ownership threshold in Vertu Motors on Thursday. He also controls Joe Duffy Motors via both Nivag and shares held directly in his name. The businessman initially passed a 3pc ownership threshold in Vertu in November last year, when it was reported to the stock exchange that Nivag owned 3.
3pc. Investors must notify the stock market when they pass a 3pc ownership level in a listed company. Shares in Vertu have declined just over 15pc in the year to date, and by more than 27pc in the past 12 months.
It has a market capitalisation of £201m. Vertu was formed in 2006 to acquire and consolidate UK motor retail businesses. It now has a chain across the UK of 188 franchised and non-franchised motor dealerships for cars and commercial vehicles.
They operate as Vertu Motors, Bristol Street Motors and Macklin Motors. In Scotland, it owns the Macklin Motors brand, which deals in marques including Ford, Hyundai, Kia, Mazda, Nissan, Peugeot, Vauxhall and Toyota. In its financial year to the end of February 2024, Vertu reported revenue of £4.
72bn and an adjusted pre-tax profit of £37.8m. While the revenue figure was a record for the group, the profit figure was down on 2023.
Releasing interim results last month, Vertu said its revenue for the period had declined 2.9pc to £2.49bn, while its adjusted pre-tax profit was down 25pc to £23.
5m. It said the decline in profitability was anticipated as costs rose due to inflation and an increased headcount. “We are actively pursuing value-accretive growth opportunities to enhance our portfolio, applying strict investment return metrics as well as returning cash to shareholders,” chief executive Robert Forrester said at the time.
Last year Joe Duffy Motors reported revenue of €583m and a pre-tax profit of €38m. That compared to €545m and €36.5m respectively the year before.
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