reports
- Carl Smith
Audio Note: Vertu Motors - Market dynamics drive downgrade
In this audio note, Zeus’ Carl Smith summarises the investment case for Vertu Motors. An ongoing correction in used car prices has driven lower gross profit per unit for Vertu in recent months and this is expected to continue in the near term. Listen to the audio note below, and read the full research here.
Hybridan Small Cap Feast - 07 Dec 23
7th December 2023 @HybridanLLP Status of this Note and Disclaimer This document has been issued to you by Hybridan LLP for information purposes only and should not be construed in any circumstances as an offer to sell or solicitation of any offer to buy any security or other financial instrument, nor shall it, or the fact of its distribution, form the basis of, or be relied upon in connection with, any contract relating to such action. This document has no regard for the specific investment obje...
- Carl Smith
Vertu Motors (VTU LN) - Market dynamics drive downgrade
An ongoing correction in used car prices has driven lower gross profit per unit for Vertu in recent months and this is expected to continue in the near term. There has been particular weakness in premium vehicle values. Additionally, higher stocking charges on increased new vehicle supply, has led to lower overall profitability. As a result, we have reduced forecast FY24 adjusted PBT by £8.0m (17%) to £39.3m and FY25 by £3.2m (6.2%) to £48.6m. This downgrade to expectations is indicative of mark...
- Carl Smith
Vertu Motors (VTU LN) - Expanding South West presence
Last week Vertu announced a complementary bolt-on acquisition of four sales outlets in the South West of England for an estimated cash consideration of £6.2m, further expanding its presence in the region. The Group is continuing its strategy of adding scale and strengthening brand partnerships. Today we make FY24 balance sheet and cash flow adjustments for the acquisition, reduce FY24 adjusted PBT by 1.5% due to the timing of the deal and acquisition costs, and add a small upgrade to adjusted PB...
- Carl Smith
Audio Note: Vertu Motors - Benefitting from scale
In this audio note, Zeus’ Carl Smith summarises the investment case for Vertu Motors. Vertu’s interim results to 31 August show record H1 revenue (£2.4b), strong year-on-year adjusted PBT growth of 11.7%, and interim dividend growth of 21.4%. Listen to the audio note below, and read the full research here.
- Carl Smith
- Carl Smith
- Carl Smith
Audio Note: Vertu Motors - Positive trading continues
In this audio note, Zeus’ Carl Smith summarises the investment case for Vertu Motors Vertu has released a positive trading update ahead of its interim results for the six months to 31 August. Listen to the audio note below, and read the full research here.
- Carl Smith
- Carl Smith
- Carl Smith
- Mike Allen
Vertu Motors (VTU LN) - Good start to FY24
Vertu has released an AGM trading statement confirming a strong first three months of trading in FY24. Ongoing benefits of scale and technology investment continue to generate earnings growth and free cash flows. Aided by the Helston acquisition, trading profit is ahead of prior year levels despite inflationary cost headwinds and the Group is confident in meeting full year market expectations for FY24, so previously upgraded Zeus forecasts are unchanged today. We believe recent public market tak...
- Mike Allen
Hybridan Small Cap Feast - 10 May 23
10th May 2023 @HybridanLLP Status of this Note and Disclaimer This document has been issued to you by Hybridan LLP for information purposes only and should not be construed in any circumstances as an offer to sell or solicitation of any offer to buy any security or other financial instrument, nor shall it, or the fact of its distribution, form the basis of, or be relied upon in connection with, any contract relating to such action. This document has no regard for the specific investment objectiv...
- Liberum Research Team
- Liberum Research Team
- Alex O’Hanlon
- Joe Brent
- Sanjay Vidyarthi
LIBERUM: Vertu Motors* - Strengthening its competitive advantage
Vertu delivered FY23 adj. PBT 2% ahead of our expectations. Better than expected working capital management led to strong FCF. Dividend growth of 26.5% was ahead of our estimate. FY24E has started strongly. Our thesis holds true, with easing new car supply supporting volume growth, but margins remaining robust. We make no change to our FY24E adj. PBT at this stage (having increased it by 10% at the March update), but expect upgrades as the year progresses. Strategically, Vertu is building a stro...
- Carl Smith
- Mike Allen
Vertu Motors (VTU LN) - Continued outperformance
Vertu’s FY23 results beat Zeus estimates at a revenue, underlying PBT and net debt level. Vertu’s ongoing benefits of scale have led to strong earnings growth and FCF generation, meaning the Group has been able to increase DPS by 26.5% YoY to 2.15p (Zeus: 1.8p) and announce a new £3m share buyback. Trading in the first two months of FY24 has been strong, so we edge up underlying PBT estimates by £1.0m to £48.0m, having already upgraded by 8.6% on 2 March. Our updated valuation estimate is 108.0p...
- Mike Allen
Video Note: Automotive Retail sector analysis
In this video note, Zeus’ Mike Allen summarises the investment case for the automotive retail sector. This report provides an updated view on the key themes facing the motor retail sector in 2023. Watch the video note below, and read the full research here.
- Carl Smith
- Mike Allen
Zeus: Automotive Retail sector analysis - April 2023
This report provides an updated view on the key themes facing the motor retail sector in 2023. On page 4 we discuss the conclusions of our July 2022 research and compare them to what happened in H2 2022. It is clear that many of the same themes (supply shortages, high inflation, sector consolidation, etc.) still apply – here we discuss how these themes have evolved.
- Mike Allen
The Motor Sector podcast: Robert Forrester - CEO of Vertu Motors
In the last episode of this series of The Motor Sector podcast, Zeus’ Mike Allen talks to Robert Forrester, CEO of Vertu Motors. Robert and a small group of colleagues founded Vertu Motors in 2006 to acquire and consolidate UK motor retail businesses. It is now the fifth largest automotive retailer in the UK employing 6000 people. Prior to this, Robert was a Director of Reg Vardy between 2001 and 2006, where he held the roles of Finance Director and Managing Director. Robert and Mike discuss t...
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