Vertu Motors Share Discussion Threads

[coolen] 08/5/2016 23:40

Odd that an analyst downgrades the EPS and then claims the shares deserve a premium rating, or have I mis-read ?

[ferries5] 07/5/2016 12:36

Wednesday 11 May

Vertu Motors (VTU) released a trading update and executed a placing of 56 million shares in early March, leading Panmure Gordon to upgrade earnings per share guidance by 8% to 6.1p for the year to 29 February - up 20% on 2015.

With its high-margin aftersales business continuing to grow, its acquisitions integrated and outlook for the vehicle market strong in March - typically the strongest month of the year, management is confident the UK's new car market will stabilise at current levels, with the supply push from Europe likely to stay in place.

But earnings for 2017 and 2018 have been downgraded by 10% to 5.9p and 13% to 6.4p respectively.

"On our revised forecasts the shares trade on a price/earnings (PE) ratio of 11.3x (February 2017), and at our 87p target price, would trade on a PE of 14.9x, a very modest premium to the rating of the wider market that we believe to be justified given its rising Return On Capital Employed and 11% order book growth to February 2016," said analyst Michael Donnelly, rating the shares 'buy'.

Look out for our exclusive chat with Vertu Motors on results day.


[...]

[nikesh] 07/5/2016 12:21

Me too, added 120k at 59p. It's a warren buffet stock!
Looking forward to seeing their cash position next week.
Sector is down overall but vertu is the best out of the lot and oversold

[buba] 07/5/2016 12:18

Cannot understand the weakness in the share price???

[mortimer7] 06/5/2016 09:13

Motor sector keeps on going....
SMMT figures out this morning show New car registrations increased 2.0% in April to 189,505 units. The highest for April since 2003.
2% represents a levelling off versus recent months, however given the record numbers in March this was wholly expected.

[master rsi] 06/5/2016 09:09

order book keeps opening up with an "AT" at 57p, now 3er day in a row, they say never buy/sell before 9am as the spread before that is large so you will not get a good price.

[r ball] 04/5/2016 21:13

below placing price. indigestion by institutes or stock overhang?

[master rsi] 03/5/2016 15:55

Bought some 2 weeks ago ahead of results, but today have added at 59p, as things are looking better on a down market
reasons:
Results next week on the 11th and are expected to be good. the fall to 58p seems the bottom as has been bouncing from that point so support and the order book is getting stronger on the bid side with DEPTH of 31 v 25

[thomasthetank1] 03/5/2016 12:08

Read Liberum's note on VERTU MOTORS PLC (VTU), out this morning, by visiting hxxps://www.research-tree.com/company/GB00B1GK4645
"Vertu has acquired Leeds Jaguar for a consideration of £650k. There is strong growth potential, although the acquisition is small and we do not change our forecasts at this stage. Importantly, it represents the first deployment of capital from the recent £35m fundraise in March and we anticipate plenty more M&A, as Vertu continues its role as an industry consolidator. We expect a strong set of prelims (Wednesday 11th May) to be the next positive catalyst ..."

[nikesh] 03/5/2016 00:42

shares after dilution was just under 400million

[coolen] 02/5/2016 23:02

Any dilutive effect (negative or positive) from the placing shares ?

[nikesh] 02/5/2016 22:05

Sorry cash estimates may be higher:

Cash: Net Cash: £32million @ 31.8.15 Since then £26 mill acquisitions. Since that date should have cash around £16 million from operations and £32 from placing -£46-£54million cash

Property will be higher as well by circa 5mill

[nikesh] 01/5/2016 07:56

Can someone tell me if my research is correct/incorrect. Thank you.

Share price: 60p
Shares in issue: 400million
Market Cap: £240million
EPS: 7.5p
Cash: Estimated £46million. Net Cash: £32million @ 31.8.15 Since then £12.8 mill paid for SHG holdings, £22million Merecdes Benz. Since that date should have cash around £14 million from operations and £32 from placing -£46million cash

Profit before tax: £34million year
Profit after tax £26million
Property £135million
No Debt
If went bust cash and property value: £181million minimum value = 45p per share

[hitch19] 29/4/2016 08:01

Is there a need to delay tiny trades? Someone's playing....

[ed 123] 21/4/2016 10:29

Hi Joe Say

Best of a bad bunch perhaps?

Do you mean commercial garages vs car makers vs builders vs etc?

Or, Vertu garages, vs Pendragon garages vs Lookers garages vs etc?

From my own experience, I would definitely say commercial garages are worse than car makers and builders, etc.

As for Vertu vs the rest, it would not be fair of me to say, as I have only one experience of using a Vertu garage. Having said that, gut reaction - How could anyone think Vertu might be best???

I am running 4 cars and would never put any of them in a Vertu garage again. I saw enough with that first experience to put me off permanently.

[joe say] 21/4/2016 07:01

Interesting Ed - but lets face it with VW and now Mitsubushi (sp?) the whole industry seems rife with the cowboy builders, double glazing salesmen, PPI mentality

Best of a bad bunch perhaps?

[ed 123] 20/4/2016 17:51

Hi zoolook.

I took a car to a Vertu garage for a service and MoT. They didn't do the full service but still charged me for it and they failed the car on the MoT test when it should have passed (in my opinion). I paid them in full and told them not to do anything more to the car, as I was going to take the car and the fail certificate to Vosa (for an Mot appeal). When I went to collect the car they told me they had corrected the fault and gave me a pass certificate. That was counter to my instructions and meant that I was unable to make an official challenge of their 'fail' decision. I spoke to the manager about it and said I was going to write to Robert Forrester about that and about the service. He seemed completely untroubled and said I would not get a reply but he would be privately asked to sort it out. I thought he was bluffing and I sent a detailed complaint to Mr Forrester, carefully setting out all that had happened. That was about two years ago and I'm still waiting for a reply! Yes, the manager was absolutely right to say I wouldn't hear anything in reply. Following my complaint to Head Office, the manager offered to refund all the money I had paid. I told him that wouldn't be fair on his garage, as they had done some of the service work and so were entitled to part payment. However, he was insistent that he would reimburse me the full amount, and he did refund me in full.

That is why, when I read about Vertu being a good business or increasing margins or suchlike, I think back to my own experience and shake my head.

I could take the view that the manager had treated me very fairly. However, he and his staff had effectively stopped me from complaining to Vosa and (by fully reimbursing me) stopped me complaining to Trading Standards. I ask myself, "Were they being kind or clever?"

I suppose I'm unusual in checking the work done on a service and in having the knowledge and confidence to challenge an MoT decision. I don't know how widespread this sort of thing is in garages generally or in Vertu garages in particular. I suspect that most customers would accept on trust everything that was said and done.

[zoolook] 20/4/2016 14:36

>How do you suppose they are raising the margins of the businesses they buy? Do you have any experience of being a customer of theirs?

I am assuming that is a rhetorical question and you are implying some financial cleverness in the way they state their figures or short termism regardng customer service rather than economies of scale and more efficient organisation. Can you be a little clearer?

[ed 123] 20/4/2016 13:14

... once placing is completed.

The placing shares were admitted to AIM on 1 April.



The point I was making was that there appears to be a seller in size atm. Today there are plenty of shares on offer at 60.25p. Yesterday they were on offer at 61p. Someone is selling and the price is drifting down.

This is a cracking little well run company ...

How do you suppose they are raising the margins of the businesses they buy? Do you have any experience of being a customer of theirs?

[daddy2010] 20/4/2016 05:59

That was an uncrossing trade. This is a cracking little well run company in a buoyant market and Mays full years will be strong. On 11x earnings it time to fill your boots as these will be back upto late 60s early 70s once placing is completed.D

[ed 123] 19/4/2016 16:42

126k shares offered at 61p in the closing auction. Only about 1k were bought.

Placing indigestion?

If it goes through 60p, 55p next support?

No position.

[master rsi] 17/4/2016 21:12

Look at the volume last Friday and a slight bounce

[tiggertiger] 14/4/2016 17:12

Looks like something going on so I just half filled my isa allowance while shares are this low.

[miikke] 14/4/2016 14:52

Is an acquisition announcement coming soon?