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Vertu Motors (VTU)

Business description

Vertu was established to build a major motor vehicle distribution group. This is being achieved through the completion and subsequent improved performance of a series of acquisitions.

Share price chart

Share chart

Stock data

Market cap.£56.8m
Last close28.50p
High / Low (52 weeks)35.2p / 22.8p
Stock market listingAIM
Forecast net cash (£m)12.2
Forecast gearing ratio (%)N/A
TeamIndustrials
SectorAutomotive Retailers

Price performance

%1m3m12m
Actual1.791.79(9.52)
Relative *6.7810.15(0.57)

* % Relative to local index

Other companies covered in sector

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Inchcape Lookers
Pendragon
Y/E Feb Revenue (£m) EBITDA (£m) PBT (£m) EPS (p) P/E (x) P/CF (x)
2010A 818.9 10.5 6.9 3.20 8.9 3.0
2011A 998.9 12.1 8.4 3.23 8.8 5.2
2012E 1050.0 11.3 7.0 3.14 9.1 4.6
2013E 1150.0 12.0 7.5 2.97 9.6 4.2

Last updated on 19/04/2012

Latest research

Opportunities out there

Update | Automotive Retailers | 20/10/2011

More growth to come

Update | Automotive Retailers | 12/05/2011

Defying the market

Update | Automotive Retailers | 14/05/2010

Progress continues

Update | Automotive Retailers | 21/01/2010

Outperforming still

Update | Automotive Retailers | 21/10/2009

Acquisitions are back

Outlook | General Retailers | 12/08/2009

Still gaining share

Update | General Retailers | 05/03/2009

Quality management

Review | General Retailers | 03/11/2008

Underlying growth

Review | General Retailers | 27/05/2008

Meeting expectations

Quarterly Update - Trading update | General Retailers | 11/03/2008

Starting to motor

Interim Review - Interim results | General Retailers | 28/11/2007

Positive AGM

Update | General Retailers | 03/09/2007

Investment summary

Results for the year to February 2012 should match up to City estimates, despite the challenging trading climate in volume cars. Vertu will almost certainly have raised its share of business in each of the marques for which it acts, while used-car and aftermarket operations also perform well. Vertu's strategy remains to develop regional clusters of franchises with chosen OEM partners. It has a strong balance sheet, with substantial funds available to finance strategic acquisitions. The potential from these deals is not recognised in the share price.

Last updated on 23/04/2012

Industry outlook

City sentiment towards the motor distribution sector remains cautious. Fears about current-year trading remain, overshadowing the action taken by retailers to build their downstream activities. SMMT forecasts suggest little change in new vehicle registrations, yet the leading groups all appear to be gaining market share. Profits are still under pressure in the short term, but this provides acquisition opportunities for those who are able.

Last updated on 23/04/2012

Key management

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



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