Vertu Motors Share Discussion Threads

[dimknaf] 28/1/2023 11:50

This is the part that Stephen Gamble presents Vertu Motors at the London Value Investing Club:
https://www.youtube.com/watch?v=o6R_RaJ6YIA&t=975s

[clive7878] 27/1/2023 12:16

Profit taking today.

[jeff h] 25/1/2023 12:25

Echoing what dave posted above:-

"....The appraisal comes as Cambria Automobiles chairman and chief executive Mark Lavery told an interview with AM published today (January 25) that he expects there to be no car retail PLCs in existence by 2025.

Speaking exclusively to AM as a recently re-privatised Cambria prepared to launch “chapter two” of its development, Lavery said: “By 2025 I don’t think we will see any because, put simply, the investment opportunity that’s there isn’t seen by the investment community.

“Look at the value attributed to businesses like Vertu and Lookers. It is in no way reflective of their scale or of the two absolutely cracking years that the sector has just had.....”

Https://www.am-online.com/news/market-insight/2023/01/25/lithia-motors-jardine-takeover-talks-highlight-uk-s-undervalued-car-retail-plcs

[davebowler] 25/1/2023 08:12

Zeus Motor sector report-Potential US entrant highlights sector valueUS franchised dealer group Lithia Motors Inc (LAD US) is reported to be in negotiations to buy a 50-site UK dealer business, Jardine Motors, for c. £300m. If the deal goes ahead, we think it highlights how undervalued the UK listed franchised dealer groups are at current levels.¨        Lithia strategy: In its 2025 plan, first announced in early 2021, Lithia set out its ambition to become a $50bn turnover retailer, quadrupling its sales from FY20 levels ($13.1bn). The Group's strategy includes achieving $20bn of this growth via acquisition. Last year, it was reported that Lithia was the bidder for Pendragon plc at 29p per share, which was ultimately blocked by the target's largest shareholder (Hedin Group). Lithia, which currently operates c. 300 sites in the US in 26 states, is still planning a strategic move into the UK market to satisfy its growth ambitions, this time via an investment in Jardine Motors, owned by conglomerate Jardine Matheson Holdings. Acquisition discussions are reportedly ongoing.¨        Target business: Jardine Motors Group operates 50 sites across the UK, employs c. 2,700 people, and is estimated to be the ninth largest dealer group in the UK, according to AM Online. Its brands are primarily luxury OEMs, including Audi, JLR, Mercedes, Porsche, McLaren, Ferrari and Aston Martin. According to latest accounts filed at Companies House for the year to 31 December 2021, the Group earned revenue of £1.6bn and underlying PBT of £24.5m (adjusting for £4.4m exceptional profit on asset disposals). At the FY21 year end, it had freehold and long-leasehold property assets of £103m and net debt (cash less bank loans) of £79.5m.¨        Relative valuation: For many of the UK listed franchised dealer Groups, 2021 was a year of record profits due to the unprecedented rises in used car values throughout the year. However, Jardine's FY21 underlying PBT of £24.5m was much lower than £84.4m for Pendragon, £80.7m for Vertu (year to 28 Feb 2022), and £90.7m for Lookers. Therefore, for the relative level of historic profitability, the reported £300m valuation for Jardine makes the UK listed dealer Group's current market capitalisations (Pendragon: £274m, Vertu: £199m, Lookers: £329m) look materially undervalued. A fairer comparison would be against FY22 performance for Jardine, or forecasts for future years, but this information is unavailable. Nonetheless, we think it is unlikely that Jardine has materially improved its profitability relative to the listed dealers since FY21, as these dealer groups have continued to trade well. In our view, the reported £300m takeover makes the UK listed dealers appear good value at current levels. This deal could spark further international entrants and sector consolidation.

[clive7878] 24/1/2023 21:14

Cazoo to cut 100s of job as online sales fall !

[wad collector] 24/1/2023 11:11

A further mixed message on the Diesel/Petrol/ EV front is the road tax . I pay £30 for my diesel , £230 for my similar size petrol car thanks to the CO2 emissions ratings.
This is an encouragement to buy diesel not petrol. It needs changing. Ultimately the incentive to buy EVs has to be financial, not enough people will pay a lot extra, now the most virtuous drivers have bought them , the less virtuous majority are a harder sell.
HMG needs to decide if the bigger problem is CO2 or particulates. There is an argument that the CO2 is the bigger problem and the more efficient diesel should trump the petrol . But fuel prices and road tax point the other way.

[kevph] 24/1/2023 09:01

Just saw this. Cazoo shutting 15 of its 22 car dealership centres.Start up money must have burned out and the volume isn't there to support. Good for VTU. https://cardealermagazine.co.uk/publish/all-cazoo-staff-will-get-redundancy-payouts-if-they-lose-their-jobs-says-online-used-car-dealer/278138

[c_k] 24/1/2023 08:23

Further possible acquisitions in the car dealer sector https://news.sky.com/story/amp/us-giant-lithia-revs-up-deal-to-buy-ferrari-dealer-jardine-motors-for-300m-12793442

[davebowler] 22/1/2023 17:21

BuffalobillNuts, it's on Research Tree and can't be copied and pasted, unfortunately.

[dimknaf] 22/1/2023 14:02

It appears cheap. I don't know it well, and I haven't bought yet, but it's going to be presented on London Value Investing Club in a few days from now.

[buffalobillnuts] 11/1/2023 10:25

hTTps://cardealermagazine.co.uk/publish/broker-upgrades-forecasts-for-vertu-off-back-excellent-helston-garage-acquisition/277499

[microscope] 11/1/2023 08:41

Profit upgrade from Lookers this morning, very strong last three months of 2022.Augurs well for holders here too.

[buffalobillnuts] 10/1/2023 08:17

Can anyone post? It's a subscription only link, Should be some good information.

VTU - RSRCH: Liberum "LIBERUM: Vertu Motors - Helston acquisition an excellent strategic fit.

[davebowler] 06/1/2023 14:07

Video on Helston purchase-HTtps://zeuscapital.co.uk/exclusives/2737839090/

[santangello] 05/1/2023 16:40

I can assure you (as someone close to the motor trade), our planned production numbers for 2023 are way up on 2022, purchase prices are way up and we cannot keep up with dealer demand.

I do hold here and have been topping up on recent overdone weakness at 45p, 46.5p and 47.75p respectively.

[mortimer7] 05/1/2023 16:27

This mornings new car registration numbers for December: 128,462. Dec 2021 was 108,596. 2022 year UK total 1,614,063. 2021 1,647,181.
Individually, last 5 months of 2022 were all higher than 2021.

[alter ego] 05/1/2023 16:19

Comparing EV costs to ICE you also need to remember:

- servicing costs , EV's don't need oil change/filters, no anti freeze, brakes last longer 'cos regenerative braking slows the car without braking, no clutch - no clutch wear, no spark plugs, no engine parts that wear out, no fan belt, timing chain etc.
- no road tax at least until 2025

Plus EV's are fast and quiet. Maybe that's some of the reasons why people are buying them.

[santangello] 05/1/2023 15:58

Looking like the price wants to test the resistance around 60p in the short term.

[dennisbergkamp] 05/1/2023 15:38

Add to the difference in price to purchase a similar electric v conventional…

Eg consider a lease deal and compare the difference - probably similar for a straight purchase too

D

[alter ego] 05/1/2023 12:54

depends on how many miles you drive. My EV costs 8p per mile. my ICE costs 30p. Not difficult to work out the economics.

[dennisbergkamp] 05/1/2023 12:49

Electric cars don’t seem to add up financially based on their price over conventionals

D

[clive7878] 05/1/2023 12:35

New car sales at 30 year low - of which a fifth were electric.
Society of Motor Traders says that new charging points were not keeping up with demand

[clive7878] 30/12/2022 16:44

One has to remember that because of the new emmision zone being introduced next year - by the motorist friend Major Savid - many people will either have to change their car or pay £12.50 per day.
Could be a lot more people looking for cars.
Not everyone has £ 70k to spend on a Tesla !
Not everyone has a computer degree to understand how to drive one either.

[microscope] 28/12/2022 17:34

Cracking volume to the upside and another surge around 2.30pm.The well-versed among you are unlikely to miss the point.....