Vertu Motors Investors - VTU

Vertu Motors Investors - VTU

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Stock Name Stock Symbol Market Stock Type
Vertu Motors Plc VTU London Ordinary Share
  Price Change Price Change % Stock Price Last Trade
0.00 0.0% 63.60 00:00:00
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pj84: hTTps:// Click on calendar tab Interim results 13 October 21 Final results May 22
theisland: Well these are all legitimate concerns / “known unknowns” and we are probably all speculating on an unknown future when you come to this very long term trends. What I would point out is that 1) it will take more than ten years before EV will be a meaningful part of the mix and by that time Vertu will likely have earned more than two times it’s market capitalization already given the absurdly low P/E we are paying; 2) it’s not clear at all if EV will have a negative impact on the after sale segment, as you seem to suggest in your comment, since EV need less service but at the same time you have a higher value added kind of job and higher clients retention; 3) all studies show that an omni-channel model is needed - only an insignificant part of sales will be carried on exclusively online: most clients still want a kind of contact with the physical world and test drive. Even in general retail it’s quite clear that physical retail won’t go away (look at the recent news about Amazon moving into physical retail) - online retail have a low penetration even in smaller items consumer products, let alone when you think about a big purchase like a car... “pure online” penetration will stay very low IMO. And Vertu is building his online sale channel anyway, which coupled with its physical store footprint will grant the best value proposition for customers IMO. I think that manufacturers may be interested in selling cars online in the future just because they want direct access to customers data - it is not a move to disintermediate car dealers. To what pro? Would you throw away a business model (car dealership) that has worked pretty efficiently fo more than 100 years to save a ridiculous 0.8% in net margin? Personally, I don’t think so. If this was the risk, why car dealers in US are trading at 2 to 3 time book value if they are in the same business and share similar risks? I think the reason for UK car dealers to trade on such low valuation is because they suffered some years of UK specific car oversupply before 2019, they suffered for Brexit and then were expected to suffer again with covid... Too many years of underperformance and investors have lost their patience... I don’t see manufacturers renounce to car dealers at all to save a tiny margin and then risk that a competitor, that may keep using car dealers, may gain market share. Omni-channel is the way to go IMO. Still think Vertu is extremely cheap and despite several uncertainties, risk-reward is very compelling - knowing nothing, you are still well protected by the value of its real estate property portfolio and the upside is meaningful. There is also the possibility that margins for car dealers will stay abnormally high for longer than the market is assuming given that it won’t be easy to satisfy in a short fashion the pent-up demand accumulated during these years - the average age of cars in UK is at historical high and at the same time you had a year lost for covid and the lack of semiconductors. Once the semiconductors shortage is resolved and under control, a couple of years with strong margins would be enough to earn half the market cap of Vertu. I don’t know of many stocks in this market that has still such a strong set-up - both fundamentally and technically.
mw8156: a/c to investors' champion website the share has declined from 75p since 2007 and the CEO has been rewarded with £590K and 690K in the last 2 years, not bad for a plc with a cap of less than £200m, and dividends have been absent. To be fair, Vertu is not alone, the CEO of Cambria has also been handsomely rewarded though Cambria's share price has a better record. BoD should realise that the owners are the shareholders.
mw8156: investors are wary, having seen poor returns these last few years while Directors have been taking out very large salaries, very difficult to access the precise figures or the Annual Report on their website. Granted this is a business with a large turnover. Have to hope the business owners, ie shareholders, will now be rewarded with promised dividends and may be capital appreciation.
ih_676530: Today's announcements will be covered in the news over the weekend(Already trending via The Evening Standard , Yorkshire Post, Business Live, Proactive Investors) and I'd expect more City's brokers to issue new price targets (City Confidential new PT is 74p) . It looks like the share price broke the 50p's barrier this morning, nicely settled above that line& traders bagged their 5-10% profit so I'd expect the share price to gain more strength next week and continue to climb up on Monday
ih_761262: Have you listened to the CEO's comment on H2 yesterday? From Twitter (incl. video): "Oh we are very busy .. very very busy. Our booking levels are very very strong” CEO of #VertuMotors #VTU $VTU -Investors presentation, 19 Aug 2021 "
tomps2: Vertu Motors (VTU) Investor Presentation August 2021 Robert Forrester, CEO & Karen Anderson, CFO present the company, the financials, the current market dynamics and the outlook, followed by an extensive Q&A with no questions unanswered. Straight, direct and informative. Watch the video here: Https:// Or listen to the podcast here: Https://
bigbertie1: Presentation was straightforward, summarising last year results, current trading and business methods. They are continuing to exploit a very strong market and are trying to raise brand awareness. Asked about future growth Robert said they were not planning to raise equity for acquisitions at present as the strong market would mean prices would be high - given the share price discount to tangible net assets buy-backs look a more sensible use of cash. I had to leave before end of questions, but I remain a happy investor. By the way I am the same person as "bigbertie" - I had to reregister when I used Google to access ADVFN and it wouldn't allow me to use my existing username!
bigbertie: So what is this presentation going to reveal? Is it just a bit of communication with investors or is there some great strategy (which needs money)?
dros1: FT today New ventures focused on selling used cars online have struck deals to raise almost $6bn so far this year, as investors bet big that the last major category of consumer spending to escape ecommerce disruption will finally go digital. Start-ups that barely existed before the pandemic and decades-old automotive trading groups alike are racing to build out the online marketplaces, consumer brands and costly logistics infrastructure needed to tap into a global used car market that is worth almost $1tn a year. “The automotive space is lagging the online shift versus almost all other retail spaces, but it’s now playing catch-up,” said Alex Chesterman, founder and chief executive of UK-based Cazoo, which is forecasting revenues to grow by more than 300 per cent to almost $1bn this year. Chesterman’s digital automotive retailer is set to go public through an $8bn deal with a US special purpose acquisition company this summer, generating proceeds of almost $1bn. Cazoo’s biggest UK competitor Cinch raised £1bn ($1.4bn) in new capital in May. Cinch and Cazoo are just two of the largest examples of how much fuel is pouring into used-car sites around the world, from India to Mexico. “It feels like the last major holdout in the shift to a digital economy,” said Tom Leathes, co-founder of Motorway, another UK automotive start-up. “It’s about time that this industry was disrupted and became more efficient. It’s been bad for consumers for decades.” Companies across Europe, Latin America and Asia are looking to replicate the success of Arizona-based trailblazer Carvana, which was founded in 2012 and is now worth more than $50bn. Carvana’s shares have more than doubled over the past 12 months, after growing annual revenues by 42 per cent in 2020. Yet its share of the fragmented US used-cars market is estimated at less than 1 per cent, which bulls see as showing huge growth potential. Consumers have researched their next car purchase online for many years. But the transaction has usually been completed offline, even if it was arranged through a website such as Auto Trader. The pandemic’s lockdowns created fertile conditions to convince more car buyers to look online for the first time, as well as for dealers to shift their focus from the forecourt to the web. “There’s been a seismic shift in the industry’s view of online business,” said Leathes, after Motorway raised $68m last month to build out its online marketplace, where dealers bid for privately owned cars. “In the past 12 months, all car dealers have had to become online car dealers.” At the same time, the chip shortage triggered by Covid-19’s manufacturing disruption has cascaded through the global automotive supply chain. Constrained production of new cars has pushed up prices in the second-hand market, intensifying competition for used vehicles and becoming a key driver of rising inflation across developed economies. Used cars were already a £480bn ($660bn) market across the UK and Europe in 2019, according to data cited by Cazoo in its investor presentation, far larger than ecommerce mainstays such as clothing or consumer electronics. But going into the pandemic, less than 1 per cent of all used car sales were conducted online. By contrast, digital channels account for a third of clothing sales and half of electronics retail. “Three years ago, it was a big call to get people to spend £20,000 on an ecommerce purchase,” said Will Turner, partner at tech investor Draper Esprit and a Cazoo investor. To get car shoppers more comfortable with buying online, digital platforms such as Cazoo, Cinch and Europe’s Autohero have introduced Amazon-like features, such as no-quibble seven-day returns and delivery within a few days. Chesterman predicts that within five to seven years, as much as 30 per cent of the used car market will have moved online. But unlocking this multibillion-dollar opportunity will require huge investment in acquiring inventory, building refurbishment centres and delivery infrastructure, and marketing. “Fundamentally the challenge has always been it’s an operationally heavy, complex, expensive model to get off the ground,” said Rebecca Hunt, partner at Octopus Ventures, an investor in Cazoo. “There’s no getting away from that.” For example, the costs of storing and delivering inventory — as well as handling returns — are far higher than in other categories of online retail because of the size and price of the asset. “It’s clear that there is massive demand,” said Hunt, “but nobody had been able to deliver at scale.”
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