Vertu Motors Share Discussion Threads

[daneswooddynamo] 29/11/2023 12:58

The message from their takeover of Marshall’s was that several manufacturers were not too happy. Toyota in particular who forced them to sell off all their Toyota/lexus sites.

[riverman77] 29/11/2023 11:06

If Cinch want to buy it, why not make offer now instead of waiting to build 20% position? If they had bid a year ago, the share price was 47p and they probably could have got it for 75p. The longer they wait the more it will cost them. Or perhaps they have no intention of making a bid and just looking to make a profitable trade.

[c_k] 29/11/2023 10:54

They are in no rush, I could see it taking 6 months to get to 20% if the shares are available. They have picked up another 2% in the last 20 days without moving the share price. They will keep mopping up at this level. I am sure there will be sellers while the second hand car market values drop.

[daneswooddynamo] 29/11/2023 10:17

They will never get to 20 percent without pushing the price up to the kind of level a takeout would come at. The shareholder base is too diverse. I am hoping their recent increases just push Autonation to get on with it, they are clearly keen to establish a UK position given their preliminary approach for pendragon

[c_k] 29/11/2023 09:46

I think Cinch will continue to buy up to 20% of the business over time so they do not push the share price up. Their previous tactic in the sector is to have a stake which allows them to have a say in who buys the company and make a profit. I can't see much downside here while Cinch are buying but there are reports of second hand prices reducing and consumer demand dropping which I think will put pressure on profits asVertu take a hit on their stock vehicles.

[riverman77] 29/11/2023 08:35

Cinch just increased holding again - could be preparing for a bid?

[buffalobillnuts] 29/11/2023 08:26

Cinch up thier stake to 6%!!
Someone knows something.

[buffalobillnuts] 24/11/2023 08:31

Just been looking at the PDG RNS's. Heddin are slowly reducing their stake, from what was 27% to now 23%.
Started on the 15th of November.
They will be spending money in the UK, the question is, where??

[thorpematt] 21/11/2023 19:27

Dan,

There is no high 5 button...so I gave you a thumbs up instead.

[dan_the_epic] 21/11/2023 10:49

What a fantastic stock in a bear market. High five to all other holders!

[jonnyno1] 17/11/2023 13:42

Cheeky wee tree shake

[microscope] 10/11/2023 08:29

If it ever turns out the the fruitloop doing that junk at Companies House regards VTU was hoping to manipulate the shareprice downwards, well they've already got some of what they deserved!Long said I thought this company was astonishingly undervalued.Whether this is simply a re-rating, or bid speculation fuelled by major shareholder interests increasing, or most likely both, it's thoroughly merited.

[leadersoffice] 10/11/2023 01:45

Worth 1 pound 8p according to one broker

[leadersoffice] 10/11/2023 01:42

https://cardealermagazine.co.uk/publish/cinch-and-we-buy-any-car-owner-increases-its-stake-in-vertu-motors-again/292787

[leadersoffice] 10/11/2023 01:39

Motor Trader. Com 09.11.23

[leadersoffice] 10/11/2023 01:38

Vertu Motors said yesterday that its Companies House records now accurately record the current directors of the Company.The incorrect filings will be removed from the record by Companies House in due course.Vertu had been made aware that its Companies House record showed two directors had been terminated and one new director added.

[jonnyno1] 09/11/2023 19:24

Guessing bid coming tomorrow or Monday given volume and interest.

[davebowler] 09/11/2023 17:22

True, they have established his occupation -he's a malicious 'actor' !!!

[wad collector] 09/11/2023 17:17

Which presumably has not yet happened . Is this the worst kept secret in the city , or wishful thinking and rumour ?
From the RNS it appears that they know the identity of the idiot sending false info to companies house.
Interesting times....

[daneswooddynamo] 09/11/2023 13:51

Now up 10 percent on day requiring an rns if they have had formal approach

[riverman77] 09/11/2023 13:08

If the bidders don't get a move on they're going to have to pay a much higher price - share price up 75% over last year and continuing to rise. This time last year I'm sure they would have got it for 75p, would now need at least 110p.

[dennisbergkamp] 09/11/2023 12:22

Sounds like the Glaziers 😂

[blippy3] 09/11/2023 11:58

... and loading it up with debt before flogging it back on the market with a wheel missing.

[davebowler] 09/11/2023 10:24

Liberum-

Our Strategist Joachim Klement wrote a brief comment on the current valuations of private assets vs listed assets, highlighting just how cheap UK and European markets are in particular compared to valuations within PE funds, which has driven PE to search more actively for opportunities in the listed space. Of course, plenty of debate over which of these valuation points is most accurate but thought this was an interesting snapshot.

Although not investment company specific, it does resonate given the recent buy-outs of trusts/REITs by private vehicles, who can then mark up these assets in their own portfolios.

The last sentence certainly stood out to me.

Kind regards,

Tom



Investors are increasingly moving their asset allocation toward private assets (be that private equity or private debt) at the expense of listed markets. The result is that valuations of listed markets become cheaper and cheaper, and liquidity dries up while the return prospects for private investments decline as too much money chases a limited opportunity set.

The figure shows that the median EV/Sales-ratio of private equity fund holdings is now 3.1x, about 26% higher than the EV/Sales of the S&P 500 which isn’t cheap to begin with. Compare it to European and UK equity markets and investors in private equity funds buy investments at an 85% and 144% premium to listed markets in Europe and the UK, respectively. But this is the median valuation of private equity multiples. Top quartile valuations start at a 7.0x EV/Sales and top decile valuations at 16.2x! Making a decent return on such starting valuations seems extremely difficult, to say the least.



No wonder then that private equity funds look for opportunities in listed markets. After all, these listed businesses are more attractively valued than private markets.

The net result of all this is that investors sell listed investments to hand money to private equity funds, which then recycle that money in listed investments again, of course only after taking a hefty fee for their services.

[davebowler] 09/11/2023 09:17

Zeus-
Expanding South West presence

Last week Vertu announced a complementary bolt-on acquisition of four sales outlets in the South West of England for an estimated cash consideration of £6.2m, further expanding its presence in the region. The Group is continuing its strategy of adding scale and strengthening brand partnerships. Today we make FY24 balance sheet and cash flow adjustments for the acquisition, reduce FY24 adjusted PBT by 1.5% due to the timing of the deal and acquisition costs, and add a small upgrade to adjusted PBT for FY25 and FY26.

¨ Target business: Rowes Garage Limited operates three Honda dealerships in Plymouth, Plymstock and Truro, as well as a Suzuki franchised outlet in Plymouth that Vertu intends to refranchise. Rowes is a growing retailer and one of the UK’s most successful Honda dealers that generated revenue of £30.2m and an operating profit of £745k in the year to 31 December 2022, albeit this was in a period of strong margins across the industry. With the deal completing on 31 October, Rowes will be consolidated for four months of Vertu’s FY24 period and is expected to contribute a small operating loss due to the seasonality of vehicle sales (November to February will not include either the March or September plate-change months). In the first full year of ownership, the deal is expected to be earnings enhancing.

¨ Strategic fit: The four acquired sites complement the 30 sales outlets in the South West of England that were acquired in the Helston deal in December 2022, also adding presence in Plymouth for the first time. Vertu is continuing to grow its network and fill in gaps in its national coverage, which we believe should create further scale benefits. The addition of three Honda outlets takes the Group’s total to 17. Vertu was already Honda’s largest UK retail partner and last week’s acquisition further strengthens this relationship. Finally, Rowes’ freehold property of £3.6m and the low amount of acquired goodwill (c. £0.9m) means that we still expect Vertu to have strong tangible asset backing following the deal.

¨ Forecasts: We incorporate the estimated balance sheet and cash flow impact of the deal in our FY24 forecasts, including a £6.2m consideration cash outflow and offsetting entries for freehold property (£3.6m), goodwill (£0.9m) and other net assets (£1.7m) including inventory. We also add £0.5m of capex for site refurbishment. Closing forecast FY24 net debt (ex. leases, incl. stocking loans) is now £87.0m (£80.0m previously), which represents only c. 0.9x FY24 EBITDA. For the P&L, we add £13m to revenue and a £0.7m operating loss to FY24 (which includes transaction costs), then forecast operating profits of £0.4m in FY25 and £0.7m in FY26 once integrated. Changes to Zeus forecasts are summarised on page 2.

¨ Valuation: We continue to think Vertu is materially undervalued given its strong track record, asset backing, and growing earnings. Using Zeus forecasts, Vertu trades on a P/E of only 8.0x FY24 and yields 3.1%. We forecast closing FY24 tangible net assets per share of 73.1p, growing to 90.2p by FY26, which should provide a floor to the share price because it effectively values the business on a break-up basis. In our view, Vertu’s value has been highlighted by recent sector takeover activity. Lookers was acquired at 9.3x FY23 P/E and Pendragon’s shareholders approved a deal to dispose of the UK motor retail and leasing businesses for £367m (c. 9.0x FY23 P/E). 9.0x FY24 P/E would value Vertu at 88.4p per share, but we think the Group is worth more than this. Our average (DCF, long-run P/E, SOTP) valuation estimate is 108.0p per share, indicating 37.8% potential upside to last night’s closing price.