Vertu Motors (VTU)

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Vertu Motors VTU Logo

The automotive retailer with a network of 124 sales and aftersales outlets across the UK.

11-Oct-2017

Interim Results For The 6 Months To End August 2017 – Revenue flat, Margins flat but Adjusted PBT is up 7.2% to £20.9m vs £19.5m last time. Interim Dividend up 10% and Buy-Back to continue up to £3m.

If I had to pick a Car Retailer it would be this one. I quite fancied an entry around the 40p area a while back but was hesitant – Still quite like it even at these levels, PER is still 6.78.

25-Jan-2018 – 47p – £182.2m – PER 7.68

Trading Update For The 12 Months To End February 2018 – FY performance to be moderately below current market expectations, following further declines in the new car market resulting from the depreciation of sterling and a softer general consumer environment.

I like this company and suspect it may be cheaper in the future now than it is today. If I find myself more interested in the sector I could be tempted here.

9-May-2018 – 49.9p – £190.0m – PER 9.03

Final Results For The 12 Months To End February 2018 – These results look about in-line. The outlook seems about in-line too with trading in March and April in-line. However, this I think is notable, “The Board therefore has confidence for the full year”, but not confidence enough to include the term “in-line with expectations”.

I do like this company but still cannot be anymore tempted this morning as I was yesterday.

25-Jul-2018 – 50.7p – £187.4m – PER 8.88

AGM Statement – Four month period to end June 2018 in-line and expects FY to be in-line too.

Not sure we will see anything more than pedestrian growth here in the short to medium term – I remain Neutral for now.

3-Sep-2018 – 49.25p – £186.8m – PER 8.75

Trading Update – In-line.

I remain Neutral here as it looks, perhaps, about fairly priced and I remain cautious about the sector in general.

10-Oct-2018 – 41p – £158.4m – PER 7.33

Trading Update For The 6 Months To End August 2018 – Revenue up 8% LFL with Adjust PBT and EPS down 10% or so. Tangible net assets per share 45.9p (2017 H1: 44.5p), the Interim Dividend is maintained.

Is there a floor here at 40p or so – Perhaps! A decent income of 4% or so backed by assets and free cash flow. Got this on my Watchlist as a potential income bargain on a bigger general market sell off.

Subsequent note: With just so much uncertainty around the industry and with EPS forecast to fall in 2019E and then rise to just 5.6p in 2021E (less than in 2018E) I changed my view to Neutral here.

1-Mar-2019 – 38.5p – £145m – PER 7.2

Trading Update For The 12 Months To End February 2019 – Expects FY to be in-line. 5 months to end January 2019 has seen Revenue up 5.2%, mainly helped by, it seems, Used sales and after sales – New sales down. Strong balance sheet but confident enough in a cautious market.

I still remain cautious myself here about the industry as a whole so I am not tempted here at present.

8-May-2019 – 35p – £132m – PER 6.5

Results For The 12 Months To End February 2019 – The headline is “Profit and cash generation ahead of expectations: dividend increased” with Adjusted PBT ahead of expectations at £23.7m (£28.6m last time), Revenue was up 6.7%. March and April trading in-line with profit expected to be in-line with the same period last time.

I still remain cautious myself here about the industry as a whole so I am not tempted here at present.

24-Jul-2019 – 38p – £141m – PER 6.8

AGM Statement – Revenues flat, outlook cautious, buying back shares, believes there will be consolidation within the industry, seems it could be a buyer.

I still remain cautious regarding the industry and am still an observer here.  Based on the latest Broker note this morning, 2019E EPS is forecast to be the same as last year with 14% growth forecast for 2020E (which seems rather optimistic to me!).

9-Oct-2019 – 33p – £120m – PER 7

Interim Results For The 6 Months To End August 2019 – Resilient H1, on track to meet FY expectations.

I still remain cautious regarding the industry and am still an observer here.

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