Vertu Motors Investors - VTU

Vertu Motors Investors - VTU

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Stock Name Stock Symbol Market Stock Type Stock ISIN Stock Description
Vertu Motors Plc VTU London Ordinary Share GB00B1GK4645 ORD 10P
  Price Change Price Change % Stock Price Last Trade
-1.10 -3.36% 31.60 16:35:06
Open Price Low Price High Price Close Price Previous Close
34.20 31.50 34.20 31.60 32.70
more quote information »
Industry Sector

Top Investor Posts

viking24: Interesting buy orders, more stake building from the major investor Auto sales booming
davebowler: Zeus; Systems capability teach in We had the opportunity to look at Vertu’s bespoke systems capability, which have been built from scratch and evolved since inception of the Group in 2006. We believe this is a powerful part of the investment case and key differentiating factor from its competitors, as such systems collate powerful data that can ultimately deliver enhanced scalability, decision making, focus and compliance. Overall, we remain happy with the long-term investment case, and continue to believe Vertu will emerge as one of the sector winners given its infrastructure, focus on compliance and strong balance sheet. We remain confident in our medium-term intrinsic value of 77p (see note from 9 Oct 2019 ) § Systems teach in: Vertu hosted a Systems Capability teach in yesterday for analysts and investors. The development of bespoke systems has been a feature since inception for Vertu in 2006. We believe this gives the Group enhanced scalability, and has also aided the acquisition integration process, which remains a key part of its growth strategy. The most recent acquisition of four VW dealerships from Sytner was integrated onto the Group’s systems within 36 hours. The internal data collected is used for performance monitoring, focus and compliance, allowing Vertu to maintain its competitive edge in a fragmented market. § Key themes: There were three key sections to the day encompassing Showroom (Point of Sale, sales process, CRM and compliance), Management Information and Financial Analysis. Showroom highlighted to us the consistent sales process Vertu has, which is something we believe the FCA is monitoring closely at present across the industry. What struck us here was the simplicity for staff to follow, and while covering all of the key issues for compliance, also balanced a relatively seamless journey for the customer. Management Information was a one stop shop for all key information in the business. Again the focus here is compliance, but also to focus on the business drivers, which also gives flexibility to changing market conditions. The final segment was Financial Analytics, which gives quick access from Group wide KPI trends right down to the detail of individual transactions at a single dealership level. This gives management reporting consistency across the Group allowing quick and effective decision making to be made. § Next catalyst: We anticipate a detailed pre close trading update during the first week of March. Final results are expected on 6th May. § Investment view: We believe the long-term valuation remains compelling at a 2020E P/E of 7.2x falling to 6.7x in 2021E and an EV/EBITDA of 3.5x falling to 3.2x with a dividend yield approaching 5% backed up by our intrinsic value per share of in excess of 77p and net tangible assets per share of 45p.
hsduk101: Yep agree, the 0 debt is very good business along with the decent cash flow. So i reckon (not an expert) there will be a small short term gain. But investors will still realistically look at the uk industry picture which will be affected by brexit fall out. Some will sell and others will hesitate from buying. Thats why im hesitant myself here
zoolook: No one is doubting that there are negatives it is whether that general sentiment has provided a golden opportunity for investors by driving the share price to an illogically low level given the virtues of Vertu - no debt, 44.9p NTAV, end of CapEx programme, increased cash generation, history of good management, good spread of business, alert to changes of customer behaviour, investment in digital as part of a holistic approach to the customer journey yada yada
zoolook: Is cash limiting their stock of used cars?. I doubt it. Buying back shares at a low share price is an efficient way of rewarding investors and reducing their dividend bill.
kpwf: You can trace the decline of this share right back to a Trading Statement on 8th March when the Board informed shareholders that it was "considering options" to raise further capital which may include a "potential equity issue". That was followed by a discounted placing to institutional investors announced the following day! I think private shareholders are now a bit wary about the possibility of future discounted placings which they are excluded from.
daddy2010: This is a nice video posted today by Investors Chronicle on Vertu. The info is a little out of date (for example it's talks about having 60,000 aftersales customers on service plans giving the business substantial annuity income when the figure is now closer to 95,000) but it gives a good insight into the business and the strength of the management team. have met Robert forester and cfo Michael Sherwin on a number of occasions and they know their onions. More importantly they are focused on maximising returns for shareholders (unlike most of the management on Aim) which is perhaps not too surprising as they also have significant shining the game.D
grahamburn: Investors Chronicle congratulates itself this morning on recommending VTU as oversold following the rout after the referendum (as well as Cambria), pointing to the 20% rise since then.
daddy2010: Cracking and very detailed 40 page sector review note out from Zeus capital this morning outlining the value. Vertu and cambria are their top picks.Also confirmed my numbers are spot on ;-)A must read for all investors and potential investors here.D
ferries5: Vertu Motors stuck in reverse gear By Harriet Mann | Wed, 11th May 2016 - 17:45 Share this car dealerships supply EU referendum Germany Mercedes-Benz Audi Jaguar With its acquisitions team picking top-quality assets and record profit growth, Vertu Motors (VTU) should be in the fast lane. However, concerns about the EU referendum and sustainability of economic growth have wiped out 26% of the car dealer's value in the past five months, and the shares are now worth less than they listed at a decade ago. Sales jumped 17% to £2.4 billion in the year to 29 February, but tighter control of costs means profit is growing faster and the pre-tax measure jumped 24% to a record £27.4 million, giving earnings per share (EPS) of 6.06p. Operating inflow was up 150% at £65.8 million thanks to lots more reclaimed VAT. Vertu ended the period with £23.1 million of net cash, up by nearly half and supporting a 24% jump in the dividend to 1.3p. Vertu's business model revolves around acquisitive growth: Vertu spent around £25 million on 16 dealerships last year. Expanding its premium business, Audi, Mercedes-Benz and Jaguar dealerships were added to its portfolio, although it still has a strong foothold in the less expensive brands like Ford, Hyundai and Honda. With the UK car retail sector still heavily fragmented, there are lots of opportunities for Vertu to spend the £35 million it raised in March's share placing at 62.5p - one buy is in the bag, expect some news in the next couple of weeks. graph 1 No flash in the pan Growth at the aftersales business - including car service and MOT - has accelerated, with the number of customers paying each month rocketing from 9,000 five years ago to 90,000 today. As retention has grown from 20% to 45%, it generates a 77% margin. Accounting for just 7.8% of revenue at £189 million, it generated 39% of gross profit at £103 million. "This isn't just a flash in the pan, this growth has been like this for four or five years," chief executive Robert Forrester explained to Interactive Investor Wednesday. “That provides us with great resilience, because that growth in aftersales will continue - it's baked in, basically.” Used cars is the second most profitable part of the group, generating nearly 32% of gross profit, and while new car sales bring in the highest proportion of revenue at £1.4 billion, £76.9 million of profit is just 29.2% of the group total. A new marketing drive focusing on TV rather than print is also paying off. Although the group spent £2 million more on advertising than last year, it made an extra £3.8 million on used cars, a good chunk of which was made in the second half: "we did well", qualifies the boss. Liberum has pencilled in sales growth to £2.7 billion in 2017, with adjusted pre-tax profit leaping to £31 million, both up 12%. The shares are still trading below their 60p IPO price and Liberum reckons EPS of 8p is possible. That would put the shares on a price/earnings (PE) multiple of under 8 times, a 20% discount to its peers. Cheap, then. Non-executive director Ken Lever certainly thinks so. He wasted no time in picking up £25,000 worth of Vertu shares at 61.23p a pop. With another record year under its belt and with promising start to the new year, Vertu is proving that it can deliver. So why did the shares fall as much as 4% Wednesday? Impact of Brexit Acknowledging the uncertainty surrounding next month's EU referendum, Vertu stays tight-lipped over any potential impact a 'Leave' decision would have on the business. Clearly, the vote is weighing on investor’s minds, though. "I think it's a combination of [Brexit] uncertainty and the fact that the industry has come so far that creates nervousness with investors," Zeus Capital analyst Mike Allen told us. "Some investors like it, they can see the business delivering and supported, but there are investors out there that are nervous about the cyclical nature of the market." While aftersales are a good defensive play to guarantee customers return in two or three years, the negative impact leaving the EU could have on currency could leave the car market in tatters. If sterling plunged against the euro, European manufacturers would be deterred from selling stock in the UK market as it wouldn't be as profitable. On the other hand, a vote to 'remain' could cause the pound to rocket, which may lead to a flood of stock on the market due to its high profitability. Still, if the UK does turn its back on the continent, the hundreds of thousands of cars German manufacturers ship to the UK each year will not dry up overnight. Allen reckons trade agreements would be signed pretty quickly, too. "I don't think it would be good for the industry but that doesn't mean that the 700,000 German cars alone that come to the UK would turn to zero," he adds. This article is for information and discussion purposes only and does not form a recommendation to invest or otherwise. The value of an investment may fall. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser. Share this
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