Reg Vardy plans an M4 advance

NORTHERN motor dealer Reg Vardy is to launch an acquisitions push in a bid to become a major player along the M4 corridor.

Group chief executive Sir Peter Vardy today unveiled plans to expand from the group's Reading, Berks outpost through Swindon and Bristol to Cardiff.

'We are talking with a number of manufacturers both on the volume and specialist, luxury side,' said Vardy.

Fuelled by record car sales, a near-20% rise in profits and shrinking debt levels, the big push comes on the eve of the scrapping of rules that allow manufacturers to determine who sells their cars and where.

'It will herald a new platform for our industry and in this environment Reg Vardy will be at the forefront of retailer consolidation,' said Vardy.

Vardy said another car sales record is likely this year and the group's own sales are 11% ahead.

'We are seeing a lot of trading up, especially when people see prices like the £16,000 BMW 3-series or a Jaguar X-type for £19,000.'

Pre-tax profits for the year to the end of April came in at £38m. The dividend is up by nearly 10% at 14.25p a share, £2.2m of which goes to Vardy.

The shares roared ahead 12 1/2p to 443 1/2p.