Vertu Motors Share Discussion Threads

[effortless cool] 05/9/2018 11:18

Wow - any reason for such a large increase (albeit in a small month)?

[mortimer7] 05/9/2018 08:10

SMMT released the unit numbers for UK new car registrations for July 2018 this morning.
Total units registered was 94,094 an increase of 23.1% compared to August 2017 total of 76,433. The best August since before 2002.

[sao1] 13/8/2018 21:09

Quite happily ping ponging between 49 and 52 for the last month... which way will it go? And why?

[mortimer7] 06/8/2018 08:17

SMMT released the figures for UK new car registrations for July 2018 this morning.
Total number of units registered was 163,898 an increase of 1.2% compared to July 2017 total of 161,997.

[mortimer7] 26/7/2018 14:26

Reasonable AGM statement yesterday concluding with "The Board expects that trading for the year ending 28 February 2019 will be in line with market expectations".

Sector will probably be right for more acquisitions, enabling Vertu to cherry pick similarly to how they evolved the business during & since the credit crunch.

[mortimer7] 05/7/2018 08:12

SMMT released the figures for UK new car registrations for June 2018 this morning.
Total number of units registered was 234,945 a decrease of 3.5% compared to June 2017 total of 243,454.

The drop off was attributable mainly towards the Fleet Sales sector (down 6.4%), with private regns only down a notional 0.6%.

[mortimer7] 02/7/2018 08:24

Acquisition news

[effortless cool] 28/6/2018 08:38

No - 30 July.

[sao1] 28/6/2018 08:33

Div pay day tomorrow?

[mortimer7] 05/6/2018 08:07

SMMT released the figures for UK new car registrations for May 2018 this morning.
Total number of units registered was 192,649 an increase of 3.45 compared to May 2017 total of 186,265.
Private demand in the month grew by 10.1%, with more than 83,000 consumers driving home in a new car, and offsetting ongoing declines in the business and fleet sectors, down -9.6% and -0.7% respectively.

[sao1] 31/5/2018 13:25

Why the sudden jump?

[mortimer7] 21/5/2018 08:46

Positive piece on Vertu in shares magazine 17th May:
"Vertu's shares look really cheap given its very strong asset backing".
(@SHARESmag)

[mortimer7] 09/5/2018 10:21

Some trade press (and analyst) commentary on todays results:


At the same time as reiterating its 'buy' stance on Vertu, Canaccord also chose to up its target price on the firm, saying "There are no material changes to our earnings estimates, but we raise our Target Price from 57p to 66p."
"We maintain our view that this is a high-quality asset and management has built solid foundations - financial, strategic and cultural - to deliver long-term earnings growth and cash generation,"

[mortimer7] 09/5/2018 08:22

Reporting this morning & good to see share price underpinned by tangible net assets per share up 14.9% at 45.4p (2017: 39.5p).

[mortimer7] 08/5/2018 07:58

To give a little context, the combined figures for March & April registrations:
2017 714,413 Units
2018 641,980 Units

Vertu results due on Wednesday 9th May.

[woodwards26] 04/5/2018 17:13

Yes but last year March was false with changes in Road tax so lots of April purchases brought forward.Although the share price defies my expectations either I am completely wrong or the market knows more . I just don't see this over 50 and believe the buybacks were holding it up but at 50 it's more than buybacks.

[mortimer7] 04/5/2018 08:16

This morning SMMT have issued their figures for new car registrations for the month of April. Total regns were 167,911 compared to 152,076 in April last year.
A total increase of 10.4%.

[woodwards26] 12/4/2018 12:28

HiI haven't followed Cambria or marshals so would be wrong for me to comment.During my period in the motor trade there has never been a problem of values of proper used cars in fact there has always been a shortage.By proper I mean a car bought new or nearly New and then used for 2 or 3 yrs these cars are sought after even in recession.The last real problem that affected used stocks was caused by what the trade call buybacks . This was created in 1998 with the pain starting in 1999 and taking a couple of years to recover from it and it's knock on effects.What happened was a dealer would supply a car to say a rental company and agree to buy it back 6 to 12months later at an agreed mileage and price.At the time of sale everything was rosy ie new car target hit and lots of bonus money. The problem was that the guys setting the buyback price were influenced by the money for hitting target and set them too high .When they came back they were too dear for two reasons one the value had been set irresponsibly wrong and two there was a drop in used values caused by both the general economic climate and the huge number of these cars available. This is much better handled today but it is that age of car where the risk would lie .The PCP s are well handled with sensible final values and of course return at an age and mileage that is desirable .I would worry more about if people found they couldn't afford the payments whether it be mainstream or other finance institutions. Not because of the cars values more that these people would not get future finance and each one is a coin that doesn't go in our slot machine.I would not be buying any motor trade shares at present though my son has a belief in Tesla but to me that's just a gamble

[anony mous] 10/4/2018 15:44

Without the share buybacks this would be sub 20p

[mortimer7] 10/4/2018 10:39

For info: Gross profit in millions £'s for UK listed Motor Dealers, from latest reported accounts.

471.0 490.7 Pendragon (UK Motor Business only). Y/E 31/12/2017 vs 2016
504.1 504.2 Lookers Ditto
258.2 211.9 Marshalls Ditto
72.6 69.6 Cambria. Y/E 31/8/17 vs 2016
159.1 160.8 Vertu. 6 months to 31/8/17 vs 6 months to 31/8/16.

Vertu due to report their year to 28/2/18 on 9th May.

[lullabite] 10/4/2018 10:18

WoW great info ty A few points : 1. I would also love to know your thoughts on Cambria and Marshall motors aswell 2. If im not wrong the dealership has to handle a residual value Drop in used Cars (inventory impairments were made during the 2007 recession ) And the oem(bmw , mercedes etc)has to deal with morosity Risk in the pcp contract right?3. What i told you i was worried about is the subprime lending in car loans , And also it seems a Big amount of used cars are entering the market (which can drive the residual values of used Cars down ) that Will led to either impairments in used Cars inventory or a reduction in margins 4. Im not sure that vertu Lost their way , i think is still early to tell , Marshall motors for example seems to be growing despite market conditions but Cambria which in my opinion is a very well managed dealership has been slightly affected by the market downturn Thanks for your outstanding info , i would love to read a Deep. Dealership Analysis written by you , also thanks for the book recommendation i Will definetely check It out

[effortless cool] 10/4/2018 08:54

Thanks for your contributions, w26. It is very useful to get insights from some one with a deep understanding of the car dealership business.

Apologies for going off topic on a VTU thread, but do you have any views on CAMB?