Vertu Motors Share Discussion Threads

[c_k] 24/4/2024 08:24

Agreed. With 20 dealerships in Ireland they are much smaller than VTU so I can only see their stake as an investment.

[davebowler] 24/4/2024 08:16

The Times: About 250 staff are expected to be laid off at the Pendragon motor dealership group just weeks after the former listed company was bought out by a US company.

[woodwards26] 23/4/2024 20:28

Whatever Duffy Motors are a well run company and will know what they are doing so it's a vote of confidence .

[bridggar] 23/4/2024 17:31

I guess we will see so enough

[rabiddog] 23/4/2024 14:26

The question is..why would Navig continue to buy ? They aren’t acquiring(directly) so investment or perhaps on behalf of someone else

[bridggar] 23/4/2024 14:25

Possible, I guess.....

[c_k] 22/4/2024 14:59

There was an RNS earlier due to Nivag Holdjngs increasing their stake. It's possible they are continuing to buy.

[bridggar] 22/4/2024 13:41

Fair bit of volume traded today. Wonder why?

[daneswooddynamo] 15/4/2024 08:29

Quite surprised it was Group 1 as they seemed to be throttling back in q1 with some lay offs across their sites. Anyway Autonation still very much on the outside as far as the UK is concerned and versus their US competitors, if they want to enter vtu remains the obvious choice

[c_k] 15/4/2024 08:12

Group 1 Automotive of the US is the winning bidder for Inchcape's UK retailer business. I thought that AutoNation would be the likely winner. As there are likely to have been other bidders which will have carried out due diligence on Inchcape and have assessed the UK market will any of them now look at VTU as the only listed car dealership that hasn't been acquired?

[buffalobillnuts] 04/4/2024 14:17

JPMorgan Asset Management slowly selling their short position, now only 0.58%.

[mortimer7] 04/4/2024 09:38

UK New Car registrations total for month of March was 317,786. Last March was 287,825.
Increase once again due entirely to Fleet market sales being up 30% as the sector catches up with the last two years supply shortages. Private sales down 7.7%.

[jaf111] 01/4/2024 16:24

Penske also could still be looking to increase its UK exposure….they were looking at Pendragon of course…..

[daneswooddynamo] 01/4/2024 15:07

I think Hedin is now focused on the smaller piecemeal acquisition strategy. Every chance if Autonation does go for Inchcape’s UK ops they add vtu in due course. Lithia has spent over 700m buying up Jardine and Pendragon retail. In any event it seems highly unlikely that vtu remains the sole quoted UK car dealer of scale

[buffalobillnuts] 01/4/2024 13:43

That just leaves Hedin then!

Sky News has learned that AutoNation, which has a market capitalisation of nearly $7bn (£5.5bn), is among the suitors circling the business since Inchcape confirmed in January it was conducting a strategic review.

AutoNation is said to be at the early stages of considering an offer and may yet not decide to proceed with one, according to industry sources.

If it does go ahead, it would represent a first step into the UK for AutoNation after it withdrew six months ago from a bidding war for Pendragon, another London-listed car dealer.

A deal could be worth in the region of £350m, insiders said.

AutoNation failed to respond to several emailed and telephoned requests for comment.

The sale of Inchcape's UK operations would mark another stage in the industry's ownership shake-up.

[davebowler] 26/3/2024 08:51

....In our view, Vertu’s P/E multiples are far from challenging for a business that has shown itself able to grow across the cycle and to generate cash. We also note that the forecasts do not include acquisitions even though it might be reasonable to expect more than the handful of sites added every year that the forecasts assume. Although not all acquisitions will necessarily be earnings enhancing in their first year. The market might appear too pessimistic on the short-term prospects and to be drawing only the easy negative conclusions regarding the structural and technical challenges and opportunities that face the automotive market over the medium term. Given management’s focus on assets, it is natural to also look to Vertu’s asset value as an indicator of value per share. The shares currently stand at a discount to Vertu’s net tangible asset per share. On our estimates, the expected FY24 year-end net tangible asset per share is 70.5p, building to 80.8p at the end of FY25. We also forecast 1.9p of dividend payable for FY24.

[davebowler] 26/3/2024 08:49

Progressive Equity Research
-Vertu is the fourth largest automotive retailer in the UK, with 188 sales outlets and a track record of cross-cycle growth, principally through businesses it has acquired, funded by equity, debt and most importantly cash generation. Vertu operates across the entire vehicle lifecycle, including new and used vehicle sales, and vehicle servicing, repair and parts. Service and repair is a 40+% gross margin repeating business. With economic headwinds, the transition to electric vehicles, recent overseas investment in the UK market and noise about new business models, the next few years should be interesting. Vertu is well placed to be a winner on several fronts. ▪ Well-placed buyer and seller. Recent takeover activity has highlighted the value in the sector and, for a major international buyer, we believe that Vertu could be an attractive target. More importantly, with a strong balance sheet and proven, well-regarded management team, Vertu can continue to grow value through acquisitions of its own. We estimate that Vertu has firepower of £70m based on current net debt guidance. ▪ New and used markets stabilised. While the pandemic and its fallout led to several turbulent years, the industry has now moved into a more normal supply push driven new vehicle market, where dealers are still fundamental to the success of manufacturers. ▪ Electric vehicles (EVs). The transition to EVs will lead to adjustments across the retail market, but there is no evidence the distribution model will change from being dealership based. Volatility and changes in the market are likely to be best handled, and exploited, by the larger retailers such as Vertu that are focused on margins, returns and customer service. ▪ Clearer picture on the business model and value. Vertu is now the only motor retailer of scale listed on the LSE, following the recent takeovers of Lookers, Pendragon and Marshalls. In our view, this allows investors to focus on what Vertu is, rather than what it isn’t. As this note describes, selling cars isn’t even where Vertu makes the highest margins – aftersales service is, and that is a repeating income stream. ▪ Valuation and forecasts. The shares trade on undemanding multiples, in our view, and forecast FY24 net tangible asset value per share of 70.4p could provide significant support or even upside. We note that our forecasts do not incorporate assumptions of significant acquisitions or major capex on new dealership sites, both of which could add significantly to earnings.

[woodwards26] 24/3/2024 16:17

Jan Feb March and usually April since records began used car values have mainly increased around 1% average a month with declines starting in May and continuing the rest of the year with November and December often being around 4%.I kept records of this since 1972 till I retired in 2010 and these seasonal changes didn't vary much except in extreme conditions like the 4 day week etc .For years the clever guys destocked ready to buy from late November til Christmas with that stock making great profits as the year rolled over

[rabiddog] 22/3/2024 13:31

Been putting my car details into webuyanycar for last few months and its value has continued to keep going up. Anecdotal evidence that used car prices have rebound-it’s a diesel crv so suspect it may be a reflection of the anti electric consumer mood ?

[neilunderwood] 20/3/2024 20:50

Cinch are the top shareholder, but only own just over 9%.

[finkie] 20/3/2024 17:56

what percentage have cinch sat on so far here, are they close to 30%?

[robmcelf2] 17/3/2024 12:06

I wonder what it will take for VTU to close the gap on the analysts Target share price of c90p. Takeover noise seems to have quietened down for now, but it's such a well run business that value will out in due course I'm sure! Just a matter of time

[mortimer7] 07/3/2024 11:52

UK New Car registrations total for month of February was 84,886. Last Feb was 74,441.
Increase due entirely to Fleet market sales being up 25%. Private sales down 2.6%.

Expect VTU increased focus on Used market & Aftersales as their Gross Profit for the 3 main elements of the business will revert back to pre 2020 percentage mix.
EG Approximately: Aftersales 40%, Used Vehs 34% New Vehs 26%.

[blackhorse23] 04/3/2024 07:08

New cars sell down