Vertu Motors Share Discussion Threads

[jonnyno1] 13/7/2023 16:27

These look seriously undervalued based on reventvtakeovers but what's the view on likely recession and cost of living crisis for the car market?

[davebowler] 12/7/2023 12:36

........Liberum Virtual dial-in Best Ideas

Hosted by: Joachim Klement – Strategy, Accounting and Sustainability Equity Research



Agenda:

14:00 Joachim Klement - Welcome, Housekeeping and Market Thoughts
14:20 Joe Brent - Keller Group
14:35 Sanjay Vidyarthi - Vertu Motors

[pj84] 07/7/2023 18:19

4. Vertu Motors – BUY
Symbol: VTU.L

Index: FTSE AIM UK 50 Index

Vertu Motors share price (Image: Google)

The UK car dealership has delivered a robust first-quarter trading performance and the management is optimistic about the outlook.

According to Sanjay Vidyarthi, an analyst at Liberum, the focus is on driving profitable sales growth while keeping tight control on costs.

“While there has been no approach for Vertu, the sector is in play.,” he said.

“Vertu remains our top pick.”

[santangello] 05/7/2023 12:36

Yes Mortimer, I seen that.....nice read across for VTU.

Sadly, at the current company value, you can almost see the Vultures circling overhead, waiting to steal this excellent company :(

[mortimer7] 05/7/2023 09:08

SMMT have announced the total for the month of June of new cars registered in the UK as 177,266. 25.8% up on June last year total of 140,958.
6 months YTD 949,720, vs 801,679 last year.

[buffalobillnuts] 05/7/2023 07:56

On the basis of that answer then, I think you should sell all your shares...... Why would you be invested if its not worth what other brokers or investors think it is!! Go away and de ramp somewhere else!

[wad collector] 04/7/2023 19:28

Err, Buffalonuts , I have not sold. And the fact that the IPO was 100p doesn't make this worth more .

[davebowler] 04/7/2023 09:31

Last week’s AGM Trading Update by this leading automotive retailer guided the market that the current year results to end February 2024 will be in line with market expectations.

For the first three months to end May the group delivered a trading profit above prior year levels, despite the continued inflationary-driven cost headwinds.

CEO Robert Forrester stated that:

“I am pleased to report that trading remains positive. Used car pricing has remained firm and we have gained market share in the new car market. The performance of our high margin aftersales business has remained strong.”

Analysts Carl Smith and Mike Allen at Zeus Capital have an average valuation on the shares of 108p, which offers a 50% upside on the current 70p.

Boosted by the recent Helston acquisition, they are going for revenues for the year to end February to lift 17% to £4.71bn (£4.01bn), boosting adjusted pre-tax profits some 22% to £48.0m (£39.3m), generating earnings of 9.9p (8.7p), easily covering a dividend of 2.5p (2.2p) per share.

Over at Liberum Capital analyst Sanjay Vidyarthi is reported as saying that the market supply-demand environment ‘is likely to remain favourable’ and the ‘sector is in play’.

“Vertu remains our top pick. A current-year 2024 price/earnings of 6.6 times is too cheap.”

We should be getting a further update on current year trading when the group publishes its Interim Trading Update in early September.

In the meantime, the shares could well have some climbing to do, not for chasing but heading to 80p?

(Profile 12.10.20 @ 30.5p set a Target Price of 40p*)

[santangello] 03/7/2023 16:31

So, no RNS for the 1m+ trades on the 30/06.

We now know it wasn't the company buying it's stock.

Any opinions out there ?

-------------------------------

Side note : New car registrations surging in Ireland ( up over 18% this year already).......should equate to similar across the U.K one would imagine. We, for one, are working all the hours possible to keep up with demand from the showrooms.

[buffalobillnuts] 02/7/2023 19:11

So, you've sold your shares in VTU!!!
Go and buy Pendragon!

FYI The IPO was 100p

[wad collector] 02/7/2023 10:05

Admire the broker's enthusiasm but 120 does seem rather optimistic considering the current price of 71p is close to an ATH.

[pj84] 30/6/2023 20:09

Vertu Motors is too cheap, says Liberum

Vertu Motors (VTU) remains a top pick for Liberum, which notes the ‘sector is in play’ although the auto trader has not received a bid yet.

Analyst Sanjay Vidyarthi retained his ‘buy’ recommendation and target price of 120p on the stock, which slipped 1.3%, or 0.9p, to 69.9p yesterday.

Vidyarthi said the first-quarter trading performance was ‘robust’ with ‘management optimistic about the outlook and no change to our forecasts’.

‘The focus is on driving profitable sales growth while keeping a tight control on costs,’ he said. ‘Meanwhile, there is continuing investment in the business to strengthen Vertu’s competitive advantage.’

Vidyarthi said the market supply-demand environment ‘is likely to remain favourable’ and the ‘sector is in play’. ‘Vertu remains our top pick,’ he continued. ‘A current-year 2024 price/earnings of 6.6 times is too cheap.’

[santangello] 30/6/2023 11:20

We have done well not to fall through 68.4p with us going xd yesterday. Very encouraging.

[microscope] 30/6/2023 11:16

Don't want to sound melodramatic but beginning to wonder from the share price movements and volume increases whether it's simply a (thoroughly merited) rerating, or if people are starting to sniff a bid.

[santangello] 30/6/2023 10:21

Has the T/u been covered somewhere this a.m ?Looks like the purchasing has begun again, 2 x 1m plus buys.

[mortimer7] 29/6/2023 12:33

Audit fees (PWC) in the last annual accounts leapt to £375k from £263k the previous year. in the absence of anything else, I'd guess that's the reason for the vote.

As for Pauline Best, last year there was a similar level of vote against the reappointment of Andy Goss. maybe just a theme of slight dissent with the NED's.

[effortless cool] 28/6/2023 19:59

15% against the auditors reappointment and remuneration; over 5% against the reappointment of iNED Pauline Best.

Both much higher than would normally be the case. Anyone got any insight into these votes?

[santangello] 27/6/2023 13:39

Buyers coming in before tomorrows AGM....

[leadersoffice] 22/6/2023 13:38

Just bought in here with some of my proceeds from Lookers

[microscope] 20/6/2023 15:31

Didn't Cinch recently *buy into VTU?

And they'll be getting, in the words of Peter Alliss, for those of you with long memories, 'much gold', from their Lookers stake....

.....2+2=...

[wad collector] 20/6/2023 08:29

Ah so that's the reason for a 1 yr high at opening. Early birds...

[buffalobillnuts] 20/6/2023 05:44

An offer coming in for lookers?

So who's next on the picking list?

[mortimer7] 15/6/2023 10:15

Agree on share price. Tangible NAV 65.3pps for FY 23, and share price is still below that.
Zeus Capital audio note in May valued at 108pps.

[tomtrudgian] 14/6/2023 08:36

Yes, sounds on the face of it a good point Microscope, as the forthcoming dividend yield is, depending on the share price of course, roughly 2.3% as every share cancelled means a lower dividend expense. But that expense is not allowable against corporation tax, unlike interest.

There is also the cost of paying the agent for the calculation of each dividend payment, and sometimes the withholding income tax depending on the shareholder’s nationality, and paying that separately.

In particular there is more than one dividend per year, although the total still may be just less than annual bank/mortgage loan interest. But lenders may also charge for their loan facility, whether lent or not, insurance, fees etc.

So, not much in it. What it does show is that the board believe that the share price is too cheap!

[microscope] 13/6/2023 08:22

Certainly a sign of terrific confidence that they also took of possible further acquisitions and continuing to pay dividends.I'm just a tiny bit surprised they're not using the cash to pay off the loan more quickly instead, or at least putting it aside to pay it off in the most cost effective way, whatever that is.Not a criticism just seems a more obvious route.