Vertu Motors Share Discussion Threads

[mortimer7] 28/4/2020 07:39

Robert Forrester on twitter this morning:
"Step change yesterday: 2825 phone calls into dealerships, 1816 service bookings made for coming weeks. 380 internet sales enquiries and 66 retail car orders taken! Bike and van sales also strong! #backtolife"

[mortimer7] 06/4/2020 08:13

Figures just published by SMMT show the number of new cars registered in the UK in March were down 44.4% compared to March 2019.
Total units registered were 254,684 vs 458,054 last year.

SMMT Comment
"With the country locked down in crisis mode for a large part of March, this decline will come as no surprise. Despite this being the lowest March since we moved to the bi-annual plate change system, it could have been worse had the significant advanced orders placed for the new 20 plate not been delivered in the early part of the month. We should not, however, draw long term conclusions from these figures other than this being a stark realisation of what happens when economies grind to a halt.

How long the market remains stalled is uncertain, but it will reopen and the products will be there. In the meantime, we will continue to work with government to do all we can to ensure the thousands of people employed in this sector are ready for work and Britain gets back on the move"

[sphere25] 17/3/2020 16:54

You'd think the balance sheet will provide some protection, but the sheer panic out there and absolutely wreckless government policies means anything goes now. Absolute chaos out there and huge blow ups to follow. Only a handful of folk talking sense like JDW statement today.

As for VTU and the industry, Daimler statement earlier:

"Stuttgart, March 17, 2020 - Due to the worsening situation of the COVID-19 pandemic, the Daimler Group has decided today to suspend the majority of its production in Europe, as well as work in selected administrative departments, for an initial period of two weeks. By taking this action, the company is following the recommendations of international, national and local authorities. The suspension applies to Daimler's car, van and commercial vehicle plants in Europe and will start this week. Connected to this is an assessment of global supply chains, which currently cannot be maintained to their full extent"

[essentialinvestor] 17/3/2020 11:13

mrf, in terms of the entire sector - this is not a VTU specific comment,
Perhaps a case of survival now? - how this all pans out, your guess is as good as anyone's guess.

VTU look to have low debt re the rest of the sector?, So perhaps a better starting point than some?.

[my retirement fund] 16/3/2020 16:29

I'm just looking for an opinion here. I mean what's the plan. Buy when there 5p per shares which fair values the madness of the last 5 yeats of acquisitions? Or stay well clear its as insolvent as they come.

[my retirement fund] 16/3/2020 16:24

Is there a solvency issue. I admit I know sweet fa about them other than they seem to have started growing the business through persistent acquisitions clustered right at the top of the cycle and then into a decreasing but significant frenzy into the industries decline over the last 3 years or so.

[mortimer7] 05/3/2020 09:29

SMMT released unit numbers today for new cars registered in the UK in February.

Total units registered were 79,594 a decrease by 2.9% compared to February 2019 (81,969).

Not too significant though as February has been the smallest month for registrations over the last couple of years. March will be the tester.

[mortimer7] 03/3/2020 10:05

Happy with todays update. If they can keep the day job ticking over, the sector evolution over the next few years offers strategic growth opps, with Vertu well placed to exploit:-

"The strong balance sheet, experienced leadership team and strong systems capability mean the Group is well placed to capitalise on the significant opportunities for growth that exist within the UK automotive retail sector. The Board considers that scale will become an increasingly important success factor in the sector and therefore has ambitious growth plans for the Group. The current pipeline of potential acquisition opportunities is strong, with purchases only to be undertaken following an assessment of capital allocation metrics"

[sphere25] 03/3/2020 09:01

Longed a few here. Stock has been clobbered and grossly oversold in the short term. Wider market bouncing abit and plenty of oversold short term bounce plays about (also picked up TMG, RCH, RFX, RWI, CIR).

Hard to call the bottom on the wider markets, but this virus is more about human tragedy than affecting the medium-longer term trajectory of companies. How gloomy are you? Let's be gloomy and anticipate a years worth of earnings being written off and a recession (whattttt?!!!!???), I'd still expect companies which have been clobbered down to low ratings to trade higher than where they are today.

It's not a structural issue and the death rates have been stated as not being a million miles off a severe flu. Plenty of gyrations in the short term of course, but looking further out, the market rallies with individual stocks rallying even on weak statements as the market looks beyond the virus imo.

[zoolook] 03/3/2020 07:39

Solid trading update



Highlights

·The Board expects the Group's trading performance for the year ended 29 February 2020 to be in line with its overall expectations

· Application of strong margin disciplines delivered continued growth in Group operating profit in the Period

·Strong performance in service continued with like-for-like revenue growth of 5.4% achieved at increased margins

· Growth in like-for-like used vehicle margins and gross profit generation was delivered through strong pricing disciplines; tighter used car supply leading to a rebalancing between volume and margin

· Like-for-like new retail vehicle volumes were 9.4% lower with stable margins

· Strong growth in fleet car sales volumes delivered, significantly outperforming the market

· Commercial vehicle volumes were impacted by new WLTP regulations introduced in September 2019

· Fleet and commercial margins rose in the Period

[woodwards26] 26/2/2020 23:20

No matter how good the system is it can't sell cars it can only give data .I would want to see that they know how to use that data to solve both customer's and employees problems and by doing so increase loyalty .Do that and and then they will have a business model to be envied

[mortimer7] 05/2/2020 09:08

UK new car registration figures for January were published this morning by SMMT.
A total of 149,279 units were registered, compared to 161,013 last January, a drop of 7.3%. Unwelcome news particularly after yesterdays 2035 deadline announcement.

[davebowler] 04/2/2020 10:02

Zeus;
Systems capability teach in
We had the opportunity to look at Vertu’s bespoke systems capability, which have been built from scratch and evolved since inception of the Group in 2006. We believe this is a powerful part of the investment case and key differentiating factor from its competitors, as such systems collate powerful data that can ultimately deliver enhanced scalability, decision making, focus and compliance. Overall, we remain happy with the long-term investment case, and continue to believe Vertu will emerge as one of the sector winners given its infrastructure, focus on compliance and strong balance sheet. We remain confident in our medium-term intrinsic value of 77p (see note from 9 Oct 2019 )

§ Systems teach in: Vertu hosted a Systems Capability teach in yesterday for analysts and investors. The development of bespoke systems has been a feature since inception for Vertu in 2006. We believe this gives the Group enhanced scalability, and has also aided the acquisition integration process, which remains a key part of its growth strategy. The most recent acquisition of four VW dealerships from Sytner was integrated onto the Group’s systems within 36 hours. The internal data collected is used for performance monitoring, focus and compliance, allowing Vertu to maintain its competitive edge in a fragmented market.

§ Key themes: There were three key sections to the day encompassing Showroom (Point of Sale, sales process, CRM and compliance), Management Information and Financial Analysis. Showroom highlighted to us the consistent sales process Vertu has, which is something we believe the FCA is monitoring closely at present across the industry. What struck us here was the simplicity for staff to follow, and while covering all of the key issues for compliance, also balanced a relatively seamless journey for the customer. Management Information was a one stop shop for all key information in the business. Again the focus here is compliance, but also to focus on the business drivers, which also gives flexibility to changing market conditions. The final segment was Financial Analytics, which gives quick access from Group wide KPI trends right down to the detail of individual transactions at a single dealership level. This gives management reporting consistency across the Group allowing quick and effective decision making to be made.

§ Next catalyst: We anticipate a detailed pre close trading update during the first week of March. Final results are expected on 6th May.

§ Investment view: We believe the long-term valuation remains compelling at a 2020E P/E of 7.2x falling to 6.7x in 2021E and an EV/EBITDA of 3.5x falling to 3.2x with a dividend yield approaching 5% backed up by our intrinsic value per share of in excess of 77p and net tangible assets per share of 45p.

[mortimer7] 21/1/2020 12:30

Vertu have completed a deal to buy Edinburgh Kia, Suzuki and Mitsubishi from the administrators of Leven Motor Co. This expands Macklin Motors and adds three new franchises.

[mortimer7] 06/1/2020 09:18

SMMT Figures published this morning show the number of new car units registered in the UK in December increased by 3.4% compared to December 2018.
The total number registered in 2019 was 2,311,140 compared to 2,367,147 in 2018.

SMMT Commentary "Despite the overall decline in 2019, the UK car market remains the second biggest in the EU, behind Germany. It is also one of the most diverse, with buyers able to choose from some 350 different models available in various fuel types and body styles to suit all driving needs. With nearly 90 exciting new generation models – 23 of them zero emission cars and 11 plug-in hybrids – set to make their showroom debuts in 2020, and some compelling deals on offer, the industry is committed to new technology that will benefit consumers and the broader environment."

[essentialinvestor] 23/12/2019 14:58

Worth a look if it gets down to 32/33 ?.

[essentialinvestor] 21/12/2019 16:29

Will the FCA clamp down on PCP in 2020 ?.

[mortimer7] 05/12/2019 09:06

SMMT Figures published this morning show the number of new car units registered in the UK in November fell slightly by 1.3% versus November 2018. Total units registered were 156,621 versus 158,639 last November.

[mortimer7] 05/11/2019 11:40

This morning, SMMT published the unit numbers for new cars registered in the UK in October. The total was 143,251 a fall of 6.7% compared to October 2018 when the total was 153,599.

[mortimer7] 30/10/2019 12:23

For information:
The FCA consultation on Motor Finance commission closes on 15/1/2020 & they state a policy announcement will be made in Q2 2020.

[sphere25] 22/10/2019 14:22

Loitering around that 40p mark now. That's a cracking 20% move higher from the buy posted below. More to come or is it time to take some off the table.

Decisions, decisions ;-)

----------------------------------------------------------------------------------
Sphere25
10 Oct '19 - 12:07 - 1557 of 1565 Edit
0 0 0
Thanks for the post DaveBowler. I have nipped in for a few VTU at 33p and put it on the main watchlist.

......


....

[ed 123] 22/10/2019 12:17

Thanks, EI. :-)

(Apologies, going a bit off-topic.)

Directing my investments is problematic these days.

My Vertu holding is part of my positioning on the assumption there will not be 'no deal' Brexit. However, the global slowdown and the very loose monetary conditions add further layers of uncertainty/complexity to the Brexit backdrop.

Are you continuing with your cautious (my judgement!) approach?

[essentialinvestor] 22/10/2019 11:12

...I was so unimpressed I stated selling when I got home..

That made me smile Ed! ).

[ed 123] 21/10/2019 21:49

Hope it goes well for you, f15jcm. :-)

Fwiw, I'm holding some Lookers too, and MMH and CFYN. Yep, won't so much lose a finger if this goes wrong, more a full arm!

FCA are looking at the industry. The impression I have is that Lookers don't think they've done much wrong, administrative failings but not misselling. Of course, I may be wrong in this, so hope I don't mislead anyone.

Pendragon was a special case, made special by Trevor Finn. I had a little disagreement with him at an agm a couple of years back. He did me a favour in that I was so unimpressed I started selling when I got home.

At the end of the day it's all a gamble. I think I'll be ok with my current motor traders but, if it goes badly, I've sized to lose just the one arm. :-O

Good luck again. :-)