Vertu Motors (VTU)

Business description

Vertu is the sixth-largest UK motor vehicle retailer. Established in 2006, it is expanding through the completion and subsequent development of a series of acquisitions, initially in volume cars, but now including the premium segment of the market.

Stock data

Market cap.£184m
Last close46.75p
High / Low (52 weeks)52.0p / 40.0p
Stock market listingLN
Forecast net cash (£m)13.6
Forecast gearing ratio (%)N/A
TeamIndustrials
SectorAutomotive Retailers

Price performance

%1m3m12m
Actual5.75.1(0.5)
Relative *6.96.5(6.6)

* % Relative to local index

Other companies in sector Show

Company news

Vertu Motors Plc (VTU)

Sun, 22 May 2011 02:30:59 GMT

Vertu Motors stuck in reverse gear

Wed, 11 May 2016 16:52:30 GMT

Gateshead's Vertu Motors planning to race ahead as sales approach £3bn

Wed, 10 May 2017 10:45:03 GMT

Vertu Motors Plc Q&A with Zeus Capital (LON:VTU)

Thu, 07 Sep 2017 10:07:30 GMT

Vertu Motors PLC Asset sale further strengthens balance sheet

Fri, 01 Sep 2017 06:33:45 GMT

Y/E Feb Revenue (£m) EBITDA (£m) PBT (£m) EPS (fd) (p) P/E (x) P/CF (x)
2016A 2423.3 35.5 27.4 6.31 7.4 2.4
2017A 2822.6 42.4 31.5 6.43 7.3 3.1
2018E 2850.0 43.5 32.5 6.49 7.2 4.2
2019E 2950.0 46.1 35.0 6.98 6.7 3.9

Last updated on 29/08/2017

Latest research

Responding to the challenge

Update | Automotive Retailers | 15/05/2017

Rating fails to recognise potential

Update | Automotive Retailers | 17/10/2016

Another fine set of figures

Update | Automotive Retailers | 17/05/2016

Medium-term potential not recognised

Update | Automotive Retailers | 19/10/2015

The momentum continues

Update | Automotive Retailers | 15/05/2015

Daily comment

Institutional Comment | Automotive Retailers | 12/11/2014

Daily comment

Institutional Comment | Automotive Retailers | 20/10/2014

Relentless progress

Update | Automotive Retailers | 17/10/2014

Daily comment

Institutional Comment | Automotive Retailers | 24/07/2014

Daily comment

Institutional Comment | Automotive Retailers | 12/05/2014

Another impressive delivery

Update | Automotive Retailers | 12/05/2014

Daily comment

Institutional Comment | Automotive Retailers | 08/05/2014

Investment summary

Last month’s AGM statement indicated that Vertu management expects to meet market expectations in FY18 and that it is to launch a share buyback of up to £3m, underlining the strength of the group balance sheet. This is despite challenging market conditions due to the change in VED in April that distorted monthly new car demand and a recent easing in consumer confidence that has narrowed used-car margins. Management has substantial financial headroom and continues to seek acquisitions to build on the medium-term potential.

Last updated on 06/09/2017

Industry outlook

Market dynamics favour larger motor dealership groups at the expense of smaller independents, which command some 60% of the franchise market. Global manufacturing overcapacity still points to support from OEMs, although stockmarket confidence continues to be undermined by the inflationary impact of weak sterling on new car prices, rising interest rates and growing consumer uncertainties. A 35% discount rating relative to the FTSE All-Share General Retailers Index fails to recognise the defensive qualities across a sector where used vehicle and aftersales activities account for the majority of profits.

Last updated on 06/09/2017

Key management

Peter Jones, Chairman
Robert Forrester, CEO
Michael Sherwin, FD

Company address

Vertu House, Kingsway North
Team Valley
Gateshead
Tyne & Wear
NE11 0JH
United Kingdom
+44 (0) 191 491 2121
View website