Vertu Motors Share Discussion Threads

[grabster] 18/12/2024 12:21

Thursday 7 December last year, yes. And it was a disappointing one covering the spell to e/o November. They're not obliged to issue one. But if they do are they leaving it longer this time for some specific event to be included?

No real clues among the local coverage of particular dealerships. They did shut down their BMW outlet in Dorchester on Dec 6 as costs were making it unviable. But that's nothing exceptional. October they announced they would no longer be opening dealerships on Sundays.

This report was a week ago. It has no bearing on the trading period to e/o November, but might impact what they were going to be saying in their 'Outlook' section:

"Vertu Motors has brand new sold petrol cars stuck in compounds and cannot deliver them to customers in time for Christmas because of the ZEV Mandate, its boss has said."

[robmcelf2] 07/12/2024 23:43

Are we due a market update from VTU next week? I think there was one 7th Dec last year...

[mortimer7] 05/12/2024 10:56

This morning SMMT announced the total for new cars regd in the UK in the month of November being 153,610. Which is a 1.9% decrease on November last year total of 156,525.

SMMT Commentary:-
"market demand for EVs remains weak and below the levels expected when the regulation was drawn up by the previous government. The industry now expects the UK’s BEV market share to be 18.7% in 2024, although a strong December performance could raise that to 19% – still, however, short of the 22% mandated target for the year"

[buffalobillnuts] 28/11/2024 05:29

Someone bought 7 million shares yesterday. Clearly they know it is undervalued!!!

[wad collector] 27/11/2024 21:22

The green shoots today?

[woodwards26] 20/11/2024 17:11

Then it's not a lease , it will most likely be a purchase scheme with payment pattern of a lease and potentially attract benefit in kind taxation

[dennisbergkamp] 19/11/2024 08:58

Strangely tusker allow you to buy the car at the lease end

Never had that choice before

Although can only see that as an arbitrage call. If there’s a delta then worth a buy and sell
D

[my retirement fund] 19/11/2024 08:30

Even company leases are being priced in the expectation the thing will be near worthless when it's handed back, I'm not an accountant but it must make more sense to pay an employee on the Fixed cost MAPs scheme now verses the savings that can be written off against profits or the corporation tax.

[dennisbergkamp] 18/11/2024 17:35

I wouldn’t buy one - company lease and then return it at the end - salary sacrifice - it’s becoming a huge thing

D

[my retirement fund] 18/11/2024 16:03

Years ago, dealers used to try and wind the clocks backwards to make money, now the reverse is happening. Some are actually purposely winding them forward just to try and sell them on as huge discounts second hand, when really they are still new. You can go on Autotrader and filter cars with under 500 miles and under 12 months old and there are loads of them. Not only that, there are loads more sitting in compounds waiting to be sold on a stupid discounts over the guide price. Total insanity. This is what happens when manufacturers are forced to make things that no one really wants.

[baldy45] 18/11/2024 15:58

Brought for £80+K, manufaturers recall for battery/circuitry problems.
Cost to Porsche £45K, current value of car about £30K.

Who in their right mind would wast their money on a milk float?

[my retirement fund] 18/11/2024 15:57

What's happening is that manufacturers are being forced to pre register brand new bevs that nobody wants, then the dealers are forced to sell them on as second hand. Another reason there is no value in secondhand bev's. You can basically buy a brand new bev that's under a year old for as if it were a 2/3 year old model with 20K miles on the clock. Anyone buying a bev and expecting any future residual value in it after a few years needs to understand that's not going to happen. The pace of devaluation of these things is off the chart and getting worse. How long can manufacturers keep building these things when no one wants them and everyone they built losses them money?

[dennisbergkamp] 18/11/2024 15:19

Unless it’s through a company scheme which is tax bene

Btw, if you’re going petrol/diesel - buy a jag. It’ll hold its value as tata are about to bin all jags - and relaunch with just 3 electric ones

D

[wad collector] 18/11/2024 13:27

The CEO was on Radio 4 this morning pointing out the carnage that EV mandates are causing the industry. Demand is not there and a £15k per car fine for exceeding the 22% target is distorting the market.
I suppose the end point is a reduced price for EVs and increase for the others, but the playing field is not flat and unintended consequences are a result. Without more financial incentives and the EV infrastructure improvements necessary, most of us are not willing to pay for EVs yet.

[niklol] 14/11/2024 20:44

Appreciate the responses
Thanks

[jonandjane1] 14/11/2024 15:51

The relative loss of business will be offset by the improved quality of applications for sales positions. The wage saving is negligible as it is generally only the sales department open on Sundays, and the earnings are mainly dependent on sales, no sales - no commission. The improved productivity over the six days and quality of staff recruitment will far outstrip the downside of Sunday opening. This is a very progressive move by Vertu and will give them a competitive advantage recruiting sales talent, which in turn leads to increased sales.

[microscope] 14/11/2024 11:27

Sunday closing creating negative sentiment, but it'll have been based on hard-nosed look at the books and presumably they've concluded, as others have indicated, it really wasn't worth the effort. Market over-reaction as usual, all imho.

[niklol] 14/11/2024 10:24

Opinions on why the share price keeps dropping please?
Thanks

[woodwards26] 14/11/2024 09:03

They are just following the trend of many car dealerships closing on Sundays over the last few years

[pete160] 13/11/2024 22:53

Closing at least one day a week to save labour costs will be the way that many businesses will have to go, retail included.Would there be much (genuine) uproar if Tesco said it was no longer going to open on a Wednesday, or Weatherspoons was not opening on Mondays, because they can't afford the staff costs?

[grabster] 13/11/2024 21:15

Although Vertu are (in a bit of virtue-signalling) presenting the Sunday closure plan as being for the benefit of an improved work/life balance for their staff, I doubt if they'd do so if it's going to lose them money. Far more likely it's a cost saving measure dressed up as a favour. And there will be some salesmen cursing the loss of Sundays which, for some, was their best day.

[niklol] 13/11/2024 18:16

I suppose many families only have Sundays free together so if that is the case they will go elsewhere

[grabster] 12/11/2024 14:21

With Vertu ditching Sunday trading at all dealerships from Dec 1, including the ones they just acquired, what impact do folks reckon this will have? Presumably less of an immediate impact than if they did so from a Spring date. And if staff pay is higher on a Sunday, whereas vehicle sale profit isn't, the effects will be muted.

[davebowler] 07/11/2024 10:01

Progressive Research note -
Vertu Motors’ acquisition of Burrows Motor Company Ltd (Burrows), announced on 29 October, builds exposure to several target brands and increases its presence in an attractive geography. Burrows is a wellestablished business and is expected to be earnings enhancing in its first full year of ownership. It is encouraging to see Vertu continue its acquisition growth path. Visibility on growth, cash generation and returns is improving. ▪ Good brands and geography. The transaction adds five Toyota, two Mazda and one Kia dealership along with one used-car outlet, located across Yorkshire and Nottinghamshire, to Vertu’s existing network of 193 sales and aftermarket outlets. These are targeted brands and locations. ▪ Financially attractive deal. In 2023, Burrows generated sales of £168.9m and operating profits of £1.4m. It is expected to be earnings enhancing in the first full year of ownership, although due to the seasonality of the business, across the remainder of the financial year the impact will be to reduce profits. The consideration is, subject to finalisation, around £12.5m net of cash, with a deferral of £1.0m for 12 months. Vertu is also taking on Burrows’ debt of c.£10.5m. We expect that the majority is mortgage finance given the £17.6m of freehold property. ▪ Revised forecasts show growth. We adjust our estimates for FY25 to reflect this deal, adding to the top line and taking a touch off the bottom, as shown overleaf. We also introduce forecasts for FY26, where we see organic growth and incremental improvements to operating performance against a more normal, but still not easy, market environment. ▪ UK motor finance ruling. The 25 October Court of Appeal ruling on car finance commissions put the industry into a very short-term muddle. Vertu has amended its paperwork and processes accordingly, and all the key lenders are back in the market. Normal service has been resumed, with no significant impact on customers or dealers yet. ▪ Time to value Vertu as a more normal compounder story? It is encouraging to see Vertu make further acquisitions, and we would expect to see the group increase its network further in due course. The UK motor retail industry is now settling back to more normal behaviour and, while issues remain, Vertu is clearly on a growth path and looks to be performing well against the wider market. In our view, this growth path, along with cash generation, an intelligent approach to capital allocation and management’s focus on delivering returns, contrasts with the group’s relatively lowly valuation multiples.

[buffalobillnuts] 07/11/2024 08:58

A good broker update on research tree until FY2026