Vertu Motors Share Discussion Threads

[britstox] 20/10/2017 15:57

Just bought in. Thoughts on this share? I remember reading a while back there's a bit in the pipeline over this next year.

[eggbaconandbubble] 16/10/2017 16:37

Daimler recalls 400,000 Mercs going back to 2011 models!! Minor adjustment to airbag settings. No one injured since "faulty" product first installed 6 years ago. A good ruse to get punters back to the showroom and whilst they wait one hour for the fix a quick test drive in the latest model that will only set you back x hundred quid a month on the strap. Or am I being a cynic?

[cockerhoop] 11/10/2017 12:50

Ferries5, I agree very interesting points made on Connected and Electric Vehicles along with their unique online offering. Also fascinating references to competitors pre-registration tactics and the treatment of vehicle funding. Clearly waiting (15 months with no acq) for a bit more distress before picking up further dealers.

[eggbaconandbubble] 11/10/2017 10:54

All the eloquence of a used car salesman!

[ferries5] 11/10/2017 09:33

A very polished and professional presentation, money in the bank and a pension surplus, plus a management team thinking, well ahead.

[mortimer7] 11/10/2017 09:25

This mornings commentary on the interim results by CEO... hXXps://www.brrmedia.co.uk/broadcasts/59dcfe9fcb88740a8d8ff40d/vertu-motors-interim-results

[welsheagle] 11/10/2017 08:20

Looks undervalued on fundamentals - Low PE, good dividend, cash in bank.

[mortimer7] 11/10/2017 07:43

Decent set of interim results out this morning. Any other sector & I think these shares would be valued far more highly. And as is the current norm on mid cap co. results days, the share price down this morning.

[boofay] 07/10/2017 15:00

back to share value...this looks good apart from margins.. why is it only trading at x7 mkt cap? also is 1% a healthy enough margin or does this explain x7. cheers

[cockerhoop] 05/10/2017 11:21

Below the belt? I was trying to be helpful. It's clear your accountancy skills aren't up to much so I was pointing you in the right direction to gain a little knowledge. Can't help some people!

[my retirement fund] 05/10/2017 11:12

The supplier has to be paid before the bank, the bank don't own those nice shiny new cars you see on their forecourts.Your comment was unnecessary and below the belt. You ought to be ashamed and have certainly shown what a that you are.

[cockerhoop] 05/10/2017 11:05

MRF, You stated they had poor cash flow, they haven't. You're asking about banking facilities when they've net cash. You're suggesting they book revenue from service plans up front - they don't. Accounts for Dummies sounds a great gift for you :-)

[eggbaconandbubble] 05/10/2017 10:59

Just wait till all those East European builders in the home counties feel the need to flash their apparent wealth and success by getting a flash car on the never never. It's only a matter of time before they catch the English habit!

[my retirement fund] 05/10/2017 10:55

That's pretty simple though for a franchised dealer, after paying the manufacturers inventory flooring it's up to the dealer to manage short term cash flow from sales. Do you know much about the franchise motor trade then?

[cockerhoop] 05/10/2017 09:49

Operational cash flow has been running ahead of profits for the last 4 years. MRF, you really need to pop a book on understanding accounts on your Christmas list!

[my retirement fund] 05/10/2017 09:38

I almost put a short on but decided i dont have spare risk capital gonna probably be kicking myself.Anyone know when their banking facilities need renewing?

[mortimer7] 05/10/2017 09:07

They won't have forward booked profit. As far as I'm aware the revenue from the increasing number of customers who take out service plans for their vehicles is booked as the vehicles are serviced. Agree that cash flow could be improved, but very difficult in the motor sector with high cash values required for working capital & low profit margins, plus the seasonal spikes in cash requirements. Should be interesting to read their interims reported next week.

[my retirement fund] 05/10/2017 08:42

Indeed but aint VTU forward booked all that profit?Is this not the reason they are showing excellent earnings but poor cash flow?I ×as thinking future bookings.

[mortimer7] 05/10/2017 08:39

Exactly the point - aftersales is linked to new car sales and also on a time delayed basis. Those vehicles registered in 2015 or 2016 when the new car market was achieving all time highs are all due for servicing.

[my retirement fund] 05/10/2017 08:30

Except aftersales is proportionally linked to new sales!You've gotta get your dealer book stamped for the 3 or 5 or 7 year warranty.Also when you order a new car people often get accessories.Second hand cars can be serviced anywhere.

[mortimer7] 05/10/2017 08:26

No doubt the headline writers will be focusing on the new car sales fall. But the reality for Vertu is they are far more reliant on profit from Used vehicles & Aftersales. Gross Profit, margin mix by percentage for Year ended 28 February 2017: 32.1% Used Vehicles 39.4% Aftersales 28.5% New Vehicles Interims due out 11th October.

[mortimer7] 05/10/2017 08:06

The UK new car market declined in September, with 426,170 new units registered, according to figures released today by the SMMT. Registrations fell by 9.3% vs September 2016. Looks like the Motor retailers will be reliant on the Aftersales & Used car revenue for the forthcoming months.

[gargleblaster] 07/9/2017 20:08

Valuation exceptionally low, the are buying back their shares, now possibly some confidence returning - let's hope for a decent "melt-up"!

[eggbaconandbubble] 07/9/2017 17:49

Well, let's hope you are right!

[rimmy2000] 07/9/2017 15:15

looking to rise.