Reg Vardy has also sold its Leicester Audi dealership to John Fox Limited for £1.1 million in cash. The sale enables Audi to complete a market area in the East Midlands. It is the Group's intention to look at other opportunities with Audi as it seeks to increase its representation with luxury marques.
As previously disclosed in its interim results on 8 January 2003, the Group has disposed of a property at Castle Marina, Nottingham to Co-operative Insurance Society Limited for £10.1 million in cash. The group will record a profit after costs of £4.5 million on the disposal. The Reg Vardy board expects further profits of approximately £3 million to be generated in 2004 under related site development agreements.
As a result of this transaction, the group has relocated its Vauxhall dealership from this property to a newly constructed dealership in the city. The net proceeds from these transactions will be applied to reduce borrowings. Taking into account these transactions, Reg Vardy plcnow holds 81 dealerships.
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