Vertu Motors Share Discussion Threads

[joe say] 04/8/2016 08:35

You say a tiny increase but the reality is this represents very strong demand - don't forget we've had month after month of growth so any growth now is still excellent

[mortimer7] 04/8/2016 08:11

Today SMMT have released their monthly new car registration figures for the month of July. Which in the context of the british economy after the "brexit" vote are quite a significant indicator of sentiment. Pleasingly for the motor retailers such as VTU the figures show an increase (albeit tiny) vs July last year of 0.1% with total registrations of 178,523.
SMMT Commented "With low interest rates, attractive finance options and exciting new models coming to the showrooms, the market still has lots to offer customers.”

[grahamburn] 02/8/2016 15:45

Brief news item in yesterday's Times which indicated that many manufacturers are effectively forcing retailers to take more vehicles into stock in order to meet their "nominal sales" targets. If correct that is not that good for the retailers' balance sheets or cash flow if the extra stock cannot be shifted out of the showrooms.

[joe say] 02/8/2016 07:55

Isn't a car deemed as a necessity nowadays?

[mortimer7] 02/8/2016 07:37

Interesting commentary on the UK new car market from Pendragons June interims today - relevant to VTU & other motor retailers:
"Approximately 75% of all UK retail cars retailed in the UK are now sold with finance agreements in place which we believe should help to underpin the stability in the new car market as these customers typically move on to new financing arrangements when purchasing their next car"

[cockerhoop] 28/7/2016 07:25

Interesting Brexit effect?

[daddy2010] 27/7/2016 13:45

Because it's massively oversold and screaming cheap!!D

[zho] 27/7/2016 11:14

2nd quarter GDP growth better than expected?

[shahodud] 27/7/2016 10:59

Any ideas why this is going up today?

[zoolook] 20/7/2016 15:53

Down on the day. Beggars belief

[mortimer7] 20/7/2016 08:37

Very happy with the comprehensive update and commentary. Not avoiding any issues and credible views on the wider issues IMO.
"Given the performance of the Group to date and the ongoing integration and improvement of businesses acquired in recent periods, the Board expects the performance for the full year to be in line with current market expectations"

[chickenrun1] 20/7/2016 06:29

A reasonable statement I would say.

[eggbaconandbubble] 20/7/2016 06:27

From the AGM statement today.....

The UK represents the second biggest market for new vehicles in the current EU and thousands of continental European jobs are reliant on a continuation of this trade with the UK. Consequently, the Board believes that Manufacturer partners are likely to be keen to support UK retailers through any period of uncertainty. The majority of the Group's new vehicle sales are imported to the UK from the EU. Our Manufacturer partners clearly have a vital interest in ensuring continued free trade access to the key UK market and the Board will be monitoring the negotiations of the trade relations between the EU and UK. The £:€ exchange rate is important to Manufacturer profitability on the UK sales and is a factor in determining the level of supply push of vehicles into the UK market. Whilst sterling has declined against the Euro following the referendum result, it remains at levels above the lows seen in 2008/9, and more recently throughout much of 2013, and at levels which the Board believes remain attractive for European Manufacturers to export vehicles to the UK. This should help to underpin the UK new car market which is currently at record levels.

[daddy2010] 20/7/2016 06:21

Make that aftersales.... D

[daddy2010] 20/7/2016 06:20

A very positive statement with continuing strong growth in used cars and aftershaves (nearly 70% of sales) more than offsetting the expected slow down in new car sales. All in line with expectations. Good news on further margin enhancements and integrations progressing well. Reassuring take on brexit impact and a further update planned in Sept. Nice to have a management team that keep their investors regularly updated.Steady as she goes.....D

[daddy2010] 19/7/2016 20:30

I'm expecting another very strong trading update tomorrow with record revenues and profits and sector beating sales growth. Looking for eps of around 6.5p, a 10%+ increase in the dividend, a decent uplift in customers on after sales contracts and a small uptick in operating margins as the impact of refurbished lots and operational efficiencies gain traction. A lot too ask but this great little company has a habit of silencing the doomsters. On the downside, I'm expecting some impact due to currency movements and a lack of forward guidance on the world post brexit (as it's too early to tell) may hold back enthusiasm given the general downbeat sentiment towards consumer stocks.One to buy and lock away for the future.D

[mortimer7] 13/7/2016 07:34

8% uplift yesterday, positive so far today 3.5%.
Marshalls trading update today references Brexit:
"It is too early to assess any impact on the UK motor vehicle market of the result of the UK referendum on EU membership"

[daddy2010] 12/7/2016 13:58

Nice to see that the market is waking up to the value here (at last) with the shares up another 8%. Vertu remains the most undervalued stock I follow in my 'quality basket'. Communisis is also worth a look if your willing to take more risk. asthe balance sheet is not as strong. The market is also sceptical as to whether the management can deliver but with a blue-chip and sticky client base this has the potential for a massive rerating if July's trading update is positive.Renowned small cap investor Richard Griffiths has faith as he has taken his stake above 15% this morning. One to add to your watch listsD

[seball] 09/7/2016 10:29

Yes expecting a rally in share price from these oversold levels next week.

[daddy2010] 09/7/2016 06:54

Hi EdIt was actually a buy as it was a delayed trade from previous days ;-)D

[ed 123] 08/7/2016 21:32

It looks like the 38p seller was active again today. 15:48 hours, 2.6 million shares sold at 37.87p. One of the market makers was making a nice margin on that 2.6 million sale.

[daddy2010] 08/7/2016 18:35

NAV per share is at least 39p. That's the value of the property only which is very conservatively valued with a good chuck of that valued over 3 years ago which provides some cushion against downwards revisions of prices if price collapse (unlikely). They have at least £10m of net cash also. The rest of the business, net stock wtc is on for free.Most after sales revenue is also recurring as it tends to be a condition of pcp contracts which most people use to buy cars these days. These lucrative contacts have increased from 9000 to 90000 (ten fold) in only three years. Margins are also on the rise but still way below the competition hence the scope for further upward revisions as the benefits of economies of scale and investment in premium brands filter through to the bottom line. Plenty to be positive about here.D

[davidosh] 08/7/2016 15:45

Net assets are not necessarily a good indicator as they have been issuing new shares in placings to buy these assets. NAV per share would be far better. The only concern would be if they have been overpaying.

Aftersales are great but not guaranteed and they need to have good systems and staff to keep contact with customers and potential customers moving into their areas of operation. I think they trail Cambria in that respect.

[mortimer7] 08/7/2016 15:21

I originally bought VTU in Feb 2013 when coincidentally the share price was around 40p.
Net Assets for Feb 2013 y/e were around £106mill.
3 years on net assets are virtually double that, as is revenue. Many other fundamentals could be cited to bear out their progress & potential, so I have no real concerns about accumulating at these prices.