Vertu Motors Share Discussion Threads

[my retirement fund] 26/6/2016 18:55

Your welcome. For those here who are convinced you can buy value it will probably be a very expensive lesson. You can buy value you have to create it.

[essentialinvestor] 26/6/2016 15:16

my retirement fund- very good call here, you made me think twice
so owe you a big thank you.

Just noticed the price today.

[ferries5] 17/6/2016 21:16

No I am afraid you read it wrong. I stated quite clearly that there was to be a bond issue and as a poster had a query about it, I copied and pasted the general facts from a rns dated 8/3 about the Equity raise and the bond issue so he would understand,.Thinking that people would know that the section regarding the equity raise had already been done.
And another thing you are wrong about is, the bond issue it is only replacing an element of debt not debt itself. Personally I quite like the idea as hopefully it will turn out cheaper than borrowing from a bank, while still retaining ownership of there commercial property.
Hope that clears things up.

[grahamburn] 17/6/2016 18:38

Granted, ferries, but the paragraph you quote refers to REPLACING (rather than INCREASING) current debt facilities. Not quite the same as your original inference and a much more sensible (secure) method of financing.

[cockerhoop] 17/6/2016 14:48

I agree, if suitable opportunities arise it's certainly still possible that they could still be debt financed.

It's pretty clear that they were aware of the Placing on the 8th!!!!

[ferries5] 17/6/2016 13:09

grahamburn.

Looked at the two rns,s dated 9th March. I see nothing that says they have abandoned plans for a property backed bond issue.
The equity raise and the bond issue are, I think entirely separate . Taken from the bottom half of an rns. 9/3

Borrowing facilities

The Group is reviewing its borrowing facilities with a view to utilising the security of its substantial freehold property portfolio to introduce an element of long term debt into its capital structure.

The Board considers that the introduction of property backed, fixed interest, long-term debt of up to GBP50 million would enhance shareholder returns, whilst maintaining the Group's strong and conservative balance sheet. This long-term debt, if executed, would replace an element of the Group's current debt facilities.



Regards

[grahamburn] 17/6/2016 11:02

ferries.

Your link is to the announcement on the 8 March.

Try reading the announcement on 9 March (ie a day later) when the company announced that it had raised the required funds through an equity placing.

In short, no likelihood of a bond issue in the foreseeable future.

Do try to keep up with events rather than providing mis-information.

[darnoc64] 16/6/2016 14:46

Oh for f... sake!

[ferries5] 16/6/2016 14:09

gangthorpe

Surely more to it than that, It does not warrant a 30% decrease in forecasts.



Seball.

They are going to issue some sort of Bond.

The Board has identified a number of near term acquisitions comprising both premium and volume dealerships which would, if completed, augment existing franchises in key geographies and also add a new manufacturer partner. In order to finance such opportunities and the Group's on-going growth strategy, the Board is considering options to raise further capital for the Group, including a potential equity issue and a review of its borrowing facilities with a view to introducing property backed, fixed interest, long-term debt. Further announcements will be made as appropriate.

[seball] 16/6/2016 13:37

£50 million loan? They just had a placing. Where does it say they are going to loan £50 mil. Thanks

[ganthorpe] 16/6/2016 13:13

I think they are referring to the seasonal cash flows around new plate months when stock is built up in advance. This can represent a lot of money on their huge turnover. Stocking finance cost 1.2m last year and will be a lot bigger this year with two big acquisitions, so the borrowing in peak months is going to be large. Also the intention to raise a 50milliom loan in the next few weeks may worry the market. Just a few thoughts.dyor

[ferries5] 15/6/2016 15:01

What do they mean by ( capricious working capital flows.) Is that the money they are spending on Building and refurbishment of dealerships.
Apoligies for being thick .

[seball] 15/6/2016 11:11

Broker downgrade maybe reason for selling.


Factsheet Vertu Motors PLC Ord 10P (VTU)
Panmure Gordon today downgrades its investment rating on Vertu Motors PLC (LON:VTU) to hold (from buy) and cut its price target to 60p (from 87p). Story provided by Stock Market.com

[seball] 15/6/2016 10:20

Looking to buy here but waiting after brexit vote.

[manrobert] 15/6/2016 06:33

nice to see director buy even if only fairly small addition.

[essentialinvestor] 13/6/2016 12:59

Had a few more at 654.5, very small position.

[ed 123] 13/6/2016 12:49

EssentialInvestor.

Agree, INCH looks good value at its current level (656p). Current year estimates, P/E about 12, dividend 3.3%. 60% of sales are overseas, so Sterling profit is boosted by the weaker pound. Has some baked-in protection, in the event that Brexit happens. (IMO, NAI)

[ed 123] 13/6/2016 11:42

LOOK may possibly have hit some sort of low this AM.

Yes, but it would appear to have been a temporary low! ;-/

VTU is also moving to a fresh year low. Support in the high 40's?

Seems likely that FTSE100 will be under 6,000 by Referendum day. Second and third line stocks doing even worse.

[essentialinvestor] 10/6/2016 10:35

Ive added some INCH, first time back in the sector for a number of years.

LOOK may possibly have hit some sort of low this AM.

[ed 123] 10/6/2016 08:38

Triple bottom and bounce or going lower?

Trading under 56p. It's at a critical point.

[essentialinvestor] 08/6/2016 10:58

It is a case of where we are in the cycle, agree we are all aware of the
cyclicality.

[cockerhoop] 08/6/2016 10:55

The fact the motor dealership business is a cyclical business is blindingly obvious.

What is garbage with is MRFs' general statement 'Cannot buy growth at a discount' along with his general rude tone over a number of boards.

[essentialinvestor] 08/6/2016 10:35

m/f, the cyclical comment is fair.

If this is the cyclical peak then what currently appears cheap may not turn out to
be value.

Tempted by LOOK but held off for now.

Unfortunately I can remember several cycles before the last, used to hold
T Cowie many moons ago.