Vertu Motors Executes Purchase of 166,551 Shares in Latest Phase of Capital Return Program

Details of July 2026 Share Repurchase Transactions

Between 20 July and 24 July 2026, Vertu Motors plc purchased 166,551 ordinary shares of 10 pence each under its share buyback programme announced on 5 March 2026. The purchases were executed solely through Shore Capital Stockbrokers Limited on the London Stock Exchange in compliance with Market Abuse Regulation (EU) No 596/2014.

Buyback activity occurred mainly on two dates: 22 July 2026 saw 83,551 shares acquired at a volume-weighted average price of 79.25 pence per share, while on 24 July 2026, an additional 83,000 shares were bought at a volume-weighted average price of 78.506 pence. The 24 July purchases comprised five separate transactions at varying times, with prices ranging between 78.0 and 79.0 pence per share, illustrating a measured approach to capital deployment.

Effect on Share Capital and Voting Rights Post-Cancellation

Following cancellation of the repurchased shares, Vertu Motors' total ordinary shares with voting rights will reduce to 310,730,236. This figure will serve as the denominator for shareholder notification calculations under the FCA's Disclosure Guidance and Transparency Rules. The company confirmed it holds no treasury shares, meaning all repurchased shares are permanently cancelled, enhancing earnings per share and capital efficiency for remaining shareholders.

This permanent cancellation strategy differs from treasury share retention used by some companies, signaling management's confidence in the company's capital strength and ability to generate returns without needing a reserve of shares for acquisitions or incentive schemes. The adjusted share count will underpin all future shareholder disclosure thresholds and reporting requirements.

Long-Term Capital Return Strategy and Shareholder Value Since 2017

Since initiating share buybacks in July 2017, Vertu Motors has returned more than a347.7 million to shareholders and reduced its shares in issue by 21.8%. This sustained capital management effort reflects a strategic preference to return surplus cash to investors rather than alternative uses such as debt repayment or acquisitions.

The 21.8% reduction in shares outstanding has mechanically increased earnings per share for remaining investors, assuming stable or growing profits. This accretive strategy demonstrates disciplined capital allocation and consistent cash generation over varying market conditions. The company has not indicated an end date for the buyback programme, suggesting continuation subject to available resources and market factors.

Vertu Motors' Position as the UK's Fourth Largest Automotive Retailer

Operating 190 sales outlets across the UK, Vertu Motors holds a significant position within the fragmented UK motor retail sector. This extensive dealership network supports revenue generation and provides operational leverage across regional markets. Founded in November 2006, the company has pursued a consolidation strategy combining acquisitions and organic growth to become a leading national retailer.

Vertu Motors aims to "deliver an outstanding customer motoring experience through honesty and trust," leveraging scale advantages such as procurement efficiencies and standardized operations. The ongoing buyback programme reflects confidence in the group's competitive position and ability to fund growth without excessive debt or equity issuance.

Compliance with Market Abuse Regulation and Disclosure Requirements

The company’s announcement complies with Market Abuse Regulation (EU) No 596/2014, providing detailed disclosure of share purchases, including dates, volumes, prices, and trading venues. All transactions were executed through Shore Capital Stockbrokers Limited, ensuring transparency and auditability. The staged purchases on 24 July demonstrate adherence to best execution practices and efforts to minimize market impact.

Disclosure of highest, lowest, and volume-weighted average prices enables stakeholders to assess buyback execution quality. Confirmation that shares will be cancelled and not held in treasury addresses potential concerns about capital structure manipulation. This transparency supports strong governance standards expected of AIM-listed entities.

Share Price Range and Execution Pricing in July 2026

During the five-day buyback window, shares were acquired between 78.0 pence and 79.25 pence per share. The volume-weighted average prices of 79.25 pence on 22 July and 78.506 pence on 24 July indicate stable pricing within a narrow range. This tight spread reflects either steady market sentiment or disciplined execution to avoid price disruption.

Shore Capital’s staggered execution on 24 July, with transactions at 78.0, 78.36, and 79.0 pence, illustrates a cautious accumulation strategy designed to minimize single-trade market impact. These purchase prices provide investors with reference points for evaluating valuation and economic value creation from the buyback programme.

Outlook on Buyback Programme and Shareholder Notification Implications

Vertu Motors indicated it will provide further updates following any additional share purchases under the buyback programme, confirming the July 2026 repurchase as part of an ongoing capital return initiative. No total target value or expiry date for the programme has been disclosed.

The reduced voting share count of 310,730,236 will serve as the baseline for shareholder notification thresholds under FCA rules. As shares outstanding decline, fixed shareholdings may cross disclosure thresholds without a change in percentage ownership, affecting reporting obligations for significant shareholders.

Capital Allocation Approach and Alternative Uses of Cash

The company’s preference for share buybacks over debt reduction, dividends, or acquisitions signals confidence in its financial position and prioritizes enhancing earnings per share. The buyback programme offers flexibility to adjust purchases based on market conditions and cash flow. Sustaining this initiative alongside investment in its 190-outlet network indicates robust cash generation from automotive retail operations.

The announcement does not clarify whether buybacks offset dilution from employee share schemes or other capital adjustments. In the capital-intensive motor retail sector, management’s choice to prioritize shareholder returns reflects an assessment of growth opportunities, competitive environment, and cost of capital.

Consolidation Strategy in UK Motor Retail Sector

Founded to consolidate the fragmented UK motor retail market, Vertu Motors has expanded to 190 dealerships, ranking fourth nationally. This scale enables procurement leverage, operational standardization, centralized support, and marketing efficiencies. Returning capital through buybacks indicates successful deployment of acquisition capital and sufficient cash flow to fund returns without hindering growth.

The company’s dual growth strategy of acquisitions and organic improvements addresses sector fragmentation. Despite challenges such as the transition to electric vehicles, evolving consumer behaviors, and regulatory pressures, ongoing buybacks demonstrate management’s confidence in navigating these headwinds.