Vertu Motors Share Discussion Threads

[mortimer7] 05/5/2021 08:06

New Car Registrations in UK for April 2020 were 141,583.

[jorns bullmarknad] 18/4/2021 08:50

I've published a short write-up on the company here: https://alexeliasson.substack.com/p/vertu-motorsI think the stock is trading on 5x PBT with potential to grow earnings considerably in the next few years when the recent acquisitions turn to profit.

[daneswooddynamo] 15/4/2021 18:59

On its way to 50 now which will prove the next obstacle as plenty of resistance there but continuing good news sector wise which I expect will see it regain the 60p area before the end of 2021 imo

[woodwards26] 15/4/2021 17:33

Agreed . Usual range is 30 to 40 it may get to 50 again as good news filters through over the next few weeks . It hasn't ever been a volatile share good or bad news it takes in its stride

[chrisb1103] 15/4/2021 16:19

50p might be a tough one to crack?

[m5] 15/4/2021 15:06

Steady as she blows here, lovely chart.

[m5] 09/4/2021 07:14

See how we go then. 👍

[daneswooddynamo] 09/4/2021 07:09

Agree, picked up another 50 myself yesterday

[m5] 08/4/2021 15:15

Took a position here yesterday. Trade seems to have held up better than anticipated and the results from LOOKERS were good, up nicely today. Confirmed break chart wise, so I am looking for the early 50's as a target. IMHO.

[mortimer7] 06/4/2021 08:16

SMMT have announced the number of new cars registered in the UK during the month of March was 283,964, an increase of 11.5% compared to March 2020 figure of 254,684.
Looking ahead, last April total units was 4,321 so the percentage increase for April 2021 could be 4000%!!

[techno20] 22/3/2021 21:46

Couple of big trades earlier this afternoon at 43p and 44p, well above other trades. Bodes well.

[woodwards26] 04/3/2021 15:00

Within reason it's neither good or bad!Let me explainIn a great market manufacturers sell the volumes they need to and don't give dealers many incentives In a Poor market manufacturers are under pressure to sell more so they give good incentives I've found they get it wrong in both scenarios they give more than necessary as they panic in a poor market . And in a good market they get complacent thinking the product will sell itself.So somewhere in between is a sweet spot for dealer profitability

[gfrae] 04/3/2021 12:48

Is that good or bad ? and presumably low margin fleet sales down a lot but what about individual sales proportion ? Maybe margins have increased ?

[boonkoh] 04/3/2021 10:49

More importantly their c2021 projection of new car sales is now 20% lower than volume achieved in c2019, taking into account Jan and Feb actuals as well as estimated impact of Mar continued lockdown.

[mortimer7] 04/3/2021 09:35

SMMT have announced the number of new cars registered in the UK during the month of February was 51,312, a fall of 35.5% compared to February 2020 figure of 79,594.

[boonkoh] 01/3/2021 11:24

Big unknown is the impact of continued lockdown on car showrooms for the month of Mar, where usually there's a great volume of new car sales due to new reg plates.Will we just see a surge in April making it up or will some of the volume be lost?Also with the global chip shortage that auto manufacturers are facing, how does that impact lead times from order to delivery, and therefore new car sales volumes?

[mortimer7] 01/3/2021 10:42

Clear strategic outlook set out in todays trading update:

"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 is an increasingly important success factor in the sector and therefore has ambitious growth aspirations for the Group. The pipeline of potential acquisition and multi-franchising opportunities is strong, with expansion only to be undertaken following a robust assessment of capital allocation metrics".

Vertu set to continue their successful growth strategy of picking off smaller dealer groups. Bound to be some bargain buys.

[davebowler] 01/3/2021 09:23

Zeus-
Trading update
Vertu has released a pre-close update, confirming FY21E performance is in line with current market consensus and Zeus Capital estimates with underlying PBT expected to be c.£23.0m. Vertu’s long-term investment case remains compelling and we reiterate our valuation of 65p per share.

§ Trading update: Vertu has confirmed it is trading in line with current market consensus, and ZC estimates, with FY21E underlying PBT expected to be c.£23.0m. This would imply a c.2% decline in underlying PBT YOY (FY20A: £23.5m) and we believe represents a robust performance in what has been an unprecedented year of significant disruption across the market.

§ Omnichannel development: Performance has undoubtedly been boosted by the Group’s accelerated development of its omnichannel capabilities. Whilst Vertu customers have long been able to purchase a used car entirely online, further investment in technology means it is now also possible for a customer to receive virtual sales presentations, pay a deposit of £99 to reserve their chosen vehicle, approve documents remotely via SMS and so use “click and collect” or delivery services.

§ Key drivers: In the 5-month period to 31 January 2021, LFL used volumes for the 5 month period fell 15.7% YOY, impacted by lockdown restrictions. Supply constraints within the used car market continued to benefit used vehicle margin, LFL gross profit per unit increased 12.8% YOY to £1,784 (FY20A: £1,582), delivering a £1.7m increase in core Group used car gross profit YOY in the 5 months. New vehicle volumes declined 13.3% YOY, in line with the market (SMMT UK private registrations -13.3%). Volume declines were offset by an improved gross profit per unit, +10.7% YOY driving a YOY £0.5m increase in LFL gross profits in the 5-month period. LFL new commercial volumes were +34% YOY, outperforming the market (SMMT: +11.6%) with LFL fleet volumes down sharply -33.1% as manufactures faced with reduced supply cut support for this lower margin channel. The period saw Aftersales LFL gross profit fall £1.9m YOY with a 5.3% growth in high margin retail service work offset by reduced vehicle preparation, warranty and accident repair work. Operating expenses as a % of revenue fell 80bps to 9.6% in period (prior year period 10.4%) benefitting from headcount reduction and lower variable costs.

§ Forecasts: Our forecasts are unchanged, reflecting confirmation that the Group is trading in line with our forecast FY21E PBT of £23.0m. Guidance for FY22E and beyond remains suspended. We will review forecasts at the time of full year results, to be published on 12 May 2021.

§ Investment view: We continue to believe the long-term valuation of Vertu is compelling, with current outperformance testament to the strength of its franchise and management team in challenging conditions. The current year has augmented already sector leading levels of Net tangible assets (48p in 2021 rising to 58p in 2023). We remain comfortable with our valuation of 65p per share set in our last note.

[jabers1] 01/3/2021 08:57

Q1 I purchase a used car 4 years old from Cazoo and I live in Southern England, Northern England, Wales or Scotland where do i go if the car is out of manufacturers warranty and it has something wrong with it? (Buying from a franchised dealer group delivers many more options for customer care)

Q2 What is Cazoo and Cinch doing different to what Franchised Motor Dealers throughout the UK have been doing for years?

Q3 How long until Cazoo and Cinch get to break even and will they survive the time that it will take them to eat there?

[daneswooddynamo] 01/3/2021 08:01

Decent update. The dealers are well placed

[boonkoh] 25/2/2021 22:28

A pity the reopening of car showrooms is only from mid April. Gonna miss the peak season of new 21 plate registrations in March. Online competitors like Carwow are going to mop up...

[boonkoh] 25/2/2021 22:27

Or they're forced to buy the shares, to satisfy vesting of the shares for performance plans?

[gfrae] 24/2/2021 09:28

The Employee Benefit Trust has just bought in nearly 2% of the company shares at up to 40+p. That is quite a show of confidence in the future prospects of this company by it's own management !
There may be quite a few people who have saved some money over the last year and feel the need for a brand new car ! and they may also want to avoid public transport for a while.

[gutterhead] 22/2/2021 20:09

Think they’ve got a Ford business in Eltham from memory.