Vertu Motors Share Discussion Threads

[my retirement fund] 08/12/2023 12:25

Indeed, the market is flooded with cheap electric cars now, clearly an oversupply issue. No one wants them ! You'd be crazy to buy a brand new one and any company that bought one thinking they were being clever with the tax break must be regretting it, not only do they book a monumental devaluation loss in such a short period, they have to pay back on the corporation tax if they sell it.

Companies have been mugged over !

[woodwards26] 08/12/2023 09:53

And company cars for tax benefit . To me the issue on electric is that currently there is no appetite for them in the used market and no amount of incentives tax breaks etc on new cars will sort that .

[davebowler] 08/12/2023 08:48

Citywire-An unscheduled update from car dealer Vertu Motors (VTU) shows a tougher trading environment but Liberum maintains the shares are still cheap.Analyst Sanjay Vidyarthi retained his 'buy' recommendation but reduced the target price from 120p to 100p on the stock, which was trading at 67p on Thursday.He said the update reflected 'more difficult conditions in the used car market, with consumer demand weakening as supply has improved'.'Vertu came into the period having built up stock and subsequently increased stock turn to trade out of the position, hitting margins,' Vidyarthi said. 'Manufacturer vehicle stocking loan costs are higher than expected and the increase in the living wage will add to costs in full-year 2025.'Vidyarthi cut his full-year 2024 forecast for profit before tax by 17% and 12% for 2025.'While this is disappointing, the balance sheet is strong and the longer-term consolidation these is intact,' he said.'A current year 2024 price/earnings of 9.2x on revised forecasts is cheap.'

[sunshine today] 07/12/2023 17:38

Oct 23


Showing results for most in america will not buy an electric car.


Most Americans still don't want an electric car — and many EV buyers end up going back to gas. Most Americans don't intend to buy an electric car in the near future, according to a new study. People who do spring for an EV often buy a gas car as their next purchase, per another study.

[sunshine today] 07/12/2023 17:35

Yep, the rate of conversion ( buying public ), has hit the buffers.

Worse is the number of previous buyers who cant handle the charging when away from home.

23% market share includes 10% of those that have to buy new tech, 10% are the green mob, and 3% fell for the sales pitch.


i predict the 23% will fall over the next two years.

[warranty] 07/12/2023 17:16

Only if people buy new cars M7 which retail wise it doesn’t look like they are. Few retail buyers will risk an EV at the moment whilst the dealerships are being forced through government intervention to sell them. You can’t force punters to buy and many are just hanging on to what they’ve already got.

[mortimer7] 07/12/2023 15:38

Won't be a problem for 12 months.
Used vehicle stock turn KPI would be around 45 days.

[sunshine today] 07/12/2023 15:00

If this is the damage from just two months trading , what will a full 12 months do to potential profits. ?

[buffalobillnuts] 07/12/2023 14:41

So, RF's valuation of 108p per share in effect should considerably less after his announcement of doom and gloom!!! I wonder if they've had offers and refused them as not being enough??

[clive7878] 07/12/2023 14:28

9.5m traded - down nearly a quarter today. Where is the bottom?

[1c3479z] 07/12/2023 14:09

also CFYN's, although only a small competitor, recent comment/results might have been a straw in the wind to which I should have paid more attention....

[essentialinvestor] 07/12/2023 13:26

Well PP if that is the case you've not being paying attention to the UK motor trade news of late.

There are multiple videos on YouTube from people in the trade saying business dropped off a cliff in October and in to November and also highlighting the fall in used prices

I mentioned this on the SHA board two weeks ago.

[tonybaloni] 07/12/2023 11:16

Correct Mortimer7, take the pain on wrong value stock as soon as possible and use the cash along with any available war chest cash, to buy well priced stock

[mortimer7] 07/12/2023 11:10

On the contrary - the biggest contributor to the profit warning is used car prices falling. Best way to counter this is to unload the stock that has fallen in value asap (market & advertise) & use the funds to replenish with units at the corrected market value.
Stock acquisition & stock turn are the two key factors.

[buffalobillnuts] 07/12/2023 11:03

Looking at the five million+ trades so far today, there is a buyer. Expect this to go up from here. RF has been a little naughty IMO, if he knew about a profit warming why did he continue with big marketing and advertising campaigns the last two months??

[davebowler] 07/12/2023 10:55

BRR interview today

Upping speed of turnover as a strategy.

[babbler] 07/12/2023 10:15

Sunshine? Perhaps a new change needed there... Not much sunshine in your commentary.

[babbler] 07/12/2023 10:14

Expect takeover offer before then

[buffalobillnuts] 07/12/2023 09:54

NAV still 75p! Nothings changed

[mortimer7] 07/12/2023 09:45

hXXps://stream.brrmedia.co.uk/broadcast/6570ab0385e1630925165f60
Robert Forrester this morning on todays unscheduled update.

Expect used car price issue to last only a few months. Effectively correcting the massive post covid rise. Vertu aiming to react quicker than competitors to reduce stock & then replace at the lower market values.

[sunshine today] 07/12/2023 09:42

Profit warnings often come like buses, in Threes.

Today was number one.

Still looking to make a large profit , but a few more months of falling prices will eat into that, rapidly.

Even if they are the best in the industry, as other dealers slash prices to stay afloat, VTU sees its own market, dry up.

Lower borrowing costs for consumers may not come good till 2025

[babbler] 07/12/2023 09:39

Yup. And cinch will probably buy more at this level to help them with their takeover votes.

[barnesian] 07/12/2023 09:32

The fall is overdone. Looking at the chart I see it coming back to 75.

[clive7878] 07/12/2023 09:17

Britishbulls slipped up yesterday having VTU as a buy!