The UK’s largest independent vehicle retailer whose principal business is the sale of vehicles, of which are approximately two years old and which have covered over 15,000 miles.
Trading Update For The 6 Months To End September 2018 – Positive stuff here. Expecting Revenuegrowth of 18% LFL. Two new sites (one year old) are both delivering an encouraging performance – New Sheffield site, opened in April is building good sales momentum.
On a PER of 8.13 – If there’s interest in the sector out there, this update should provide a tailwind here (for those not worried about the HUGE Net Debt).
29-Nov-2017 – 172p – £172.3m – PER 9.61
Interim Results For The 6 Months To End September 2017 – This is quite impressive. Revenue up 18% to £483.2m (FY17 H1: £408.9m), PBT (and exceptional items) up 64% to £10.5m (FY17 H1: £6.4m), Underlying EPS up 62.3% to 8.6p (FY17 H1: 5.3p) and there’s an Interim dividend of 2.0p (FY17 H1: 1.33p), that’s a 50% or so increase. And, there’s a share buy back programme for up to £10m.
Apart from the huge Net Debt (which seems to be acceptable (within the industry)), even for those not interested in the sector (including me), this is looking more attractive. It’s going on my Watchlist.
Subsequently revised Watchlist price, 220p.
6-Apr-2018 – 217p – £217.1m – PER 10.8
Trading Update For The 12 Months To End March 2018 – Revenue to be up 18% as H1 growth rate has continued into H2, Underlying PBT to be at the upper end of market expectations. Recent openings performing in-line. Confirms commitment to £10m buyback programme. Confident on the future.
This is attractive but I know I don’t have conviction in the sector at present, I am going to remove it from my Watchlist and go Neutral.
12-Jun-2018 – 261p – £260.9m – PER 13.7
Final Results For The 12 Months To End March 2018 – Revenue up 20.6% from £822.0m to £991.2m, PBT up 70.9% to £20.0m (FY17: £11.7m) with Adjusted Basic EPS up 32.3% to 16.8p (FY17: 12.7p), the FY Dividend will be 6.6p (FY17: 4.2p) an increase of 57.1%.
There’s quite a lot to like here but enough not to like too. For me, for example, the sector (uncertainty), the Net Debt (it’s quite large), the Operating Margin (it’s very thin) – I remain Neutral.
24-Jul-2018 – 240p – £235.5m – PER 12.1
AGM Trading Update – Confident of delivery FY in-line with management expectations (of course there’s zero mention of what they are).
There’s still quite a lot to like here but enough not to like too – Such as that Net Debt (it’s quite large) and the Operating Margin (it’s very thin) – I remain Neutral.
5-Oct-2018 – 203p – £198.1m – PER 10.0
Trading Update For The 6 Months To End September 2018 – Revenue up 9%, Operating margin at a similar level to last year, confident it can increase market share. No reference at all to expectations.
There’s still enough to worry about here to keep me Neutral, e.g. the sector in general, the Net Debt is quite high, the thin Operating margin and no reference to expectations in this update.
29-Nov-2018 – 217.5p – £211.4m – PER 10.5
Results For The 6 Months To End September 2018 – Revenue up 9.4%, PBT up 13.3%, Adjusted EPS up 11.6% with Gross Margin up from 140% to 146%. The Interim Dividend is up and impressive 25%. Current trading is in-line.
I still have concerns about the sector but it does now seem to be holding up (even as we get nearer to you know what) – Getting more tempted but not quite over the edge yet.