Vertu Motors Share Discussion Threads

[cockerhoop] 01/6/2016 10:37

Now you're back from your cruise, perhaps you could sort the new cheap site for PRES out, as you said there's loads around :-)

[cockerhoop] 01/6/2016 09:19

Thanks for clarifying, I do think though that VTU raised the current funding with specific acquisitions in mind. I'm sure the remaining money will be spent within the next 5-6 weeks.

[cockerhoop] 01/6/2016 08:35

Mortimer,

I'm not sure the manner of funding has any bearing on the type or size of business acquired. Clearly in this case raising equity to purchase a quality business at lower multiples than VTU is rated makes sense. I'd be a little concerned if a Marshalls shareholder at the amount of debt taken on when nearer to the top of the cycle than the bottom.

[mortimer7] 01/6/2016 08:15

In terms of their acquisitions, VTU primary modus operandi has been to strategically target smaller established businesses as opposed to the top end sector deals such as Lookers acquisition of Benfield and Marshalls of Ridgeway.
The equity route gives them flexibility to be selective and these "smaller" groups are quickly and easily integrated into VTU becoming immediately earnings enhancing.
Lookers and Marshalls with their recent takeovers of large groups are taking a mix of good and under performing outlets, plus the long and disruptive process of integration.

[zoolook] 01/6/2016 08:13

Thank you for your contribution

[my retirement fund] 01/6/2016 07:49

Great purchase ?

Now watch the share price tank to muli year lows in the face of the highest car sales for decades LOL.

You lot cheering this destroyer of equity value need your heads examined imo, either that of you all have a seat on the board and are collecting big fat salaries and eye watering expenses for putting a few hours a week in and signing the odd bit of paper.

jeez !!!!!!!

one born every minute as my grandma used to say.

[cockerhoop] 01/6/2016 07:22

Quality purchase at a pretty reasonable price, Gordon Lamb already achieves strong margins so as they say will be immediately earnings enhancing (increasing EPS by >10%).

Further acquisitions to be announced using the money raised in the recent placing.

[manrobert] 01/6/2016 06:48

looks like a great acquisition for cash and extra £2m plus on profits.hope the market gives it the same positive response as marshalls recent takeover.

[cockerhoop] 26/5/2016 13:30

They've used £24m cash, extended a undrawn £75m debt facility to £120m and borrowed against the inventory to fund it.

It's very definitely >80% funded by new debt. The facility was previously negotiated but unused.

[grahamburn] 26/5/2016 13:07

If you read the MMH announcement carefully, the acquisition is not financed through additional debt. It is from existing resources, including the funds provided through the IPO only last year.

Ridgeway is a very substantial acquisition which is in a different league to Vertu's recent acquisitions and increases the size and reach of MMH considerably. It's unlikely that Ridgeway was one of Vertu's current targets given the cash consideration involved. If it was then there might be a delay in Vertu finding new targets.

Having said that Vertu is still higher up the size league table of companies in the sector than MMH and further consolidation within the sector is almost inevitable.

[cockerhoop] 26/5/2016 10:56

Interesting acquisition by MMH today of Ridgeway, lots of sector consolidation going on. MMH appear to be heading down the debt route rather than issuing shares as per VTU.

[sphere25] 24/5/2016 09:29

Being on AIM doesn't help, but this has big seller written all over it.

Buyers queuing up here, just like yesterday. Abit of buying pressure now and this will definitely confirm the bullish move yesterday.

[r ball] 23/5/2016 20:52

I doubt if a big seller has really had an impact. I suspect main drag is the fact that this is an aim stock. a full market listing would mean increased liquidity and widen the scope formandated institutional buying. with possible Fed and BOE interest rate rises I would avoid. all the best though.

[sphere25] 23/5/2016 14:25

Seller cleared at 58? Could be significant if so.

Could be a trend reversal here - looking for a pop higher back into the 60's first if the large seller is done.

[r ball] 22/5/2016 19:47

following a massive PPI led consumer windfall the shareprice has hardly budged over 3 years. undervalued- yes. value trap - yes, too.

[manrobert] 20/5/2016 07:39

bt aanother 17000 bu its down as asell on advfn.good start this morning hope the seller has finished and we can move up to reflrctrecent resukts

[essentialinvestor] 18/5/2016 12:45

Mainly because I have followed LOOK for years, however have not looked
at the sector in detail for awhile.
Paying some attention again as think this current EU uncertainty is
presenting opportunities, hopefully.

[cockerhoop] 18/5/2016 12:32

EI,

Can I ask why? Compared to VTU, CAMB or PDG?

[essentialinvestor] 18/5/2016 12:14

LOOK my sector favourite atm, however unlike VTU they have a chunk of debt.

[ferries5] 18/5/2016 12:13

Though I do not like dilution, it is better than debt.
The money they are spending on the building and refurbishment of dealerships may be a concern for some. But if they want the dealerships they have no options,( Manufacturers dictate ) And of course the emission test, which is being blown out of all proportion by the Americans.

[cockerhoop] 18/5/2016 12:12

They raised £50m in May 2013 and £35m recently through placings, I'd be surprised if there was any further dilution for at least a couple of years.