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Vardy(Reg) PLC (VDY)

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Wednesday 22 September, 2004

Vardy(Reg) PLC

AGM Statement

Vardy(Reg) PLC
22 September 2004

22 September 2004

                          Reg Vardy plc ("Reg Vardy")

                                AGM Statement

Reg Vardy plc is today providing the following update on current trading at its
Annual General Meeting:

"New vehicle registrations in the United Kingdom in the first quarter of 2004
had been at record levels, with a peak in March.  We reported in July that
retail registrations had declined year on year from April to June.  It is clear
that many retail customers brought forward their purchases to March, the month
of the registration letter change. Retail sales, particularly of small cars,
where Reg Vardy has a strong market share, have continued to fall year on year
in the subsequent period to August.  The market to date for the month of
September is ahead overall with retail registrations broadly similar to last
year's levels.  The final week of the month remains crucial in terms of overall
registrations. These market conditions have affected our performance in the
first few months of the financial year.

Further as we enter the fourth year of the bi-annual registration change, March
is becoming increasingly dominant and this will affect the seasonality of the
Group's profitability.

The Group, which now has 93 dealerships, undertook the acquisition of 24
businesses over the last eighteen months.  Reg Vardy's strategy is to purchase
under-performing dealerships, paying little or no goodwill for them.  The Group
has proved that it is able to significantly improve the returns from these
dealerships using its management and marketing formulae, particularly in regard
to increasing sales of used vehicles. We have previously stated that full
assimilation of new dealerships takes between three and four years to complete,
especially where reorganisations into market areas are required.  Overall
margins have been diluted in the short term but should build going forward as
the new dealerships reach maturity.

The Group's strategy of delivering enhanced shareholder value through
acquisition and organic growth is supplemented by an ongoing share buy back
programme.  This approach is underpinned by strong operating cashflows and
significant balance sheet strength, which will be further enhanced by the
receipt of the VAT claim and proceeds from the previously disclosed property

Whilst we are cautious about the new retail car market in the current year, we
are pleased to report good performances from our fleet sales, contract hire,
used vehicle and aftermarket service businesses.  This, together with the widely
held view that interest rates may have or soon will reach their peak, means that
we remain optimistic of building significant shareholder value in the medium


For further information:

Sir Peter Vardy, Chief Executive, Reg Vardy plc                 0191 525 3000
Robert Forrester, Finance Director, Reg Vardy plc               0191 525 3000
Jonathon Brill/Billy Clegg, Financial Dynamics                  020 7269 7157

                      This information is provided by RNS
            The company news service from the London Stock Exchange