ONE of the two executives who led last year's (pounds) 40m management buy-out of luxury car dealer Glenvarigill from the Drambuie Group has quit the firm.

Gavin Manson, the former finance director, has sold his 40% stake to managing director Tim Bartlett, who now has 80% of the company, for an undisclosed sum. The Bank

of Scotland owns the other 20%.

Bartlett said the transaction was completed last month. ''Gavin came on board in 1999 and was a key part of the MBO process,'' he said.

''He subsequently decided that his interest lay in a transaction-based environment. He did not want to take on an operational role.''

Manson's departure follows the resolution of a (pounds) 1m legal dispute with Drambuie, which is owned by the MacKinnon family. The liqueur company began legal action in May to recover money it insisted Glenvarigill should have begun paying when the MBO was finalised in August 2002.

The case was settled ''amicably'' before it went to court, said Iain Graham, Drambuie's finance director.

Manson declared in February that the firm was ''on the acquisition trail'', but so far the newly-independent Glenvarigill Group has focused on consolidating its healthy market position.

The firm, one of Scotland's leading luxury car dealerships with more than 450 staff, retains dealerships for Ferrari, Maserati, Porsche, Audi, Volkswagen, Peugeot, Seat, Honda, and Renault.

Bartlett said the company has dropped a Chrysler Jeep franchise because it was not profitable.

Glenvarigill has outlets in 16 locations, including Glasgow, Edinburgh, Dundee, Perth, and Stirling.

''We have a preference to develop the business with our existing manufacturing partners but there is nothing new to report,'' said Bartlett.

Glenvarigill's trading figures from August 2002 to the end of last year show that it is managing to service hefty debt obligations and still post a healthy return. The Livingston-based firm unveiled a pre-tax profit of (pounds) 427,000 for the period on turnover of (pounds) 53m after paying (pounds) 680,000 in interest.

Bartlett said the company is budgeting for turnover of (pounds) 180m in 2004 and a pre-tax profit of (pounds) 1m.

''Last year was a record for us and 2003 has been similar,'' said Bartlett. ''Size-wise we

are a little in front of where industry forecasters thought the market would be.''

Glenvarigill returned to profit in 2001 after four straight years of losses. The firm has more than doubled its sales in the last three years.

Bartlett and Manson turned heads by paying four times more than industry watchers had expected for the firm, though it is understood that the funding included money for expansion.

Manson could not be contacted for comment.