Vertu Motors Share Discussion Threads

[gutterhead] 19/5/2021 22:10

It’s a potential liability.
They will have free stocking, normally for 90 days, then start paying interest for another 180 days, then will have to buy the unit.
Ordering the right models and then “dressing̶1; each car in the right colour, spec etc is an art and the good dealers never end up having to buy stock.
It’s not a debt.

[mm84] 19/5/2021 21:35

Indeed, it's not an simple problem. After holding on to those cars for some time the company will start paying interest sooo.... maybe it should be counted as debt. One way to look at it is to count it as debt and net back the inventory.

[gutterhead] 19/5/2021 18:59

Just email Robert forrester and ask

[gutterhead] 19/5/2021 18:58

The manufacturers supply funding for stocking cars.
It’s not debt

[mm84] 19/5/2021 18:01

You mention that the company has net debt of £5-10M. Are you not including the funding from the OEM's?

Cambria discloses how much this is. Doesn't Vertu?

Does anyone have any clue to where I can find this?

[ntv] 12/5/2021 16:52

Happy to hold at the moment with a good start to the new year

[davebowler] 12/5/2021 09:01

Zeus;
Built on strong foundations
Vertu has released an impressive set of FY results, which are ahead of our previously upgraded forecasts. Trading momentum remains strong with pent-up demand still evident, and with healthy cash generation and a strong balance sheet we believe Vertu is well positioned. This note focuses on the scaled business (#9 in Europe) that has been built up from nothing 15 years ago, and we increase our near term intrinsic value from 62.9p to 75.6p per share implying a healthy risk/reward profile from current levels.

§ FY21 results: Vertu has delivered a very strong set of results for FY21, outperforming our latest adjusted PBT forecasts by 7%. This represents a 37% outperformance vs. the forecasts we released in October 2020. Vertu has generated significant cash throughout FY21, improving the net debt position from £28.3m in FY20 to £4.5m at the end of FY21.

§ Outlook: Vertu’s outlook is confident, with trading profits at a record level in the two months to April 2021. Adjusted PBT in the two months is running at £19.2m vs. £14.8m in 2019. We are mindful of current supply constraints, which could intensify during the course of the year.

§ New forecasts: As a result of Vertu’s strong performance, we have upgraded our forecasts for the Group. We now expect revenue to increase to £3.2bn in FY22, a 7.1% upgrade on our prior forecasts. We forecast this to result in underlying PBT of £26.0m in FY22. In our view, revenue and profits will continue to grow through to FY24. However, we expect the increase in the headline corporation tax rate in the UK (effective 1 April 2023) will cause a slight dip in FY24 EPS. Through this stronger performance and positive FCF generation, we think net cash (excluding leases) will be £2.4m by the end of FY22, increasing to £13.0m by FY24. This will allow Vertu to reinstate its dividend, which we expect will happen in FY22 at c.1.6p per share.

§ Valuation: As ever, the solid balance sheet of Vertu underpins the share price, with tangible net assets per share of 50.2p as at 28 February 2021. We see this as a floor for the share price, with other valuation methods providing upside. Our updated DCF gives a valuation of 75.8p. Our SOTP valuation, which separately values the EBIT Vertu generates and its property portfolio, gives a 98.5p per share value estimate. Finally, we have reviewed Vertu’s long-run P/E ratio, which provides a valuation of 78.0p when applying a mid-cycle P/E of 12.0x to prior peak earnings. Considering the possibility of Vertu further growing its EPS through acquisitions, we think a blue-sky target for EPS of 8.5p is achievable. At 12.0x P/E, this provides a long-term share price target of 102p.

[techno20] 12/5/2021 08:50

Two broker reports out this morning, both increasing share price target, Zeus to 75p, Liberum to 80p.

Topped up. GLA

[daneswooddynamo] 12/5/2021 08:35

The dealers have very good momentum coming out of COVID and I expect that to continue for the rest of the year. The shares have of course already doubled effectively from the lows but no reason why they cannot move back to the 55/60p level over the next 12 months imo

[techno20] 12/5/2021 08:23

Disappointing reaction to a stonking set of results. Value will out here as realisation of the scale of pent up demand and strength of the digital offering grows.

[mortimer7] 05/5/2021 09:06

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

[jorns bullmarknad] 18/4/2021 09:50

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 19:59

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 18:33

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 17:19

50p might be a tough one to crack?

[m5] 15/4/2021 16:06

Steady as she blows here, lovely chart.

[m5] 09/4/2021 08:14

See how we go then. 👍

[daneswooddynamo] 09/4/2021 08:09

Agree, picked up another 50 myself yesterday

[m5] 08/4/2021 16:15

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 09:16

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.