Vertu Motors (VTU)

Sector:

Retailers

Index:

FTSE AIM All-Share

55.30p
   
  • Change Today:
    -1.20p
  • 52 Week High: 75.00
  • 52 Week Low: 45.70
  • Currency: UK Pounds
  • Shares Issued: 348.95m
  • Volume: 155,505
  • Market Cap: £192.97m
  • RiskGrade: 217

Vertu reports forecast-beating FY numbers, reinstates guidance

By Abigail Townsend

Date: Wednesday 12 May 2021

LONDON (ShareCast) - (Sharecast News) - Car dealership Vertu Motors reported above-forecast final results on Wednesday, and predicted a strong 2022 following a bumper start to the year.
Revenues in the year to 28 February, dented by lockdowns repeatedly closing showrooms, fell to £2.55bn from £3.06bn a year earlier. On a like-for-like basis, sales declined 21.6%.

However, pre-tax profits rose from £7.3m to £22.4m after government support totalling £27.8m helped offset losses incurred when showrooms were closed. The gross margin also improved, to 11.8% from 10.9%.

Chairman Andy Goss said: "The business emerged from the first lockdown stronger in many ways for the experience.

"Trading conditions throughout the summer months were bolstered by pent-up consumer demand. The period also saw the additional benefit of cost reductions, achieved through the roll out of technology developed during lockdown, which enhanced efficiency across a number of different areas of the business."

Various restrictions were re-introduced from November but the Aim-listed firm continued trading on a click and collect/home delivery basis.

Looking to the current year, like-for-like sales were ahead 135% year-on-year, with adjusted pre-tax profits of £19.2m against £14.8m in the same two months in 2019.The group now expects adjusted pre-tax profit for the year to be in the range of £24.0m to £28.0m.

It also expects to resume dividend payments from January 2022.

Chief executive Robert Forrester said: "We have started the new financial year very strongly, have generated record levels of cash and have a very strong balance sheet.

"Brexit uncertainty is now behind us and we are exceedingly well-placed to benefit from the changes and opportunities which are ahead of us."

As at 1130 BST, shares in Vertu were ahead 2% at 46.0p.

Sanjay Vidyarthi, analyst at Liberum, said: "Vertu's market-leading omni-channel strategy has supported sales and let to a very strong start to the 2022. We increase full-year pre-tax profit estimates by 49%, allowing for some caution due to new car supply constraints.

"Vertu remains our top pick in the sector due to the track record, strength of management and balance sheet."

Liberum also increased its price target, to 80p from 60p.

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Note 1: Prices and trades are provided by Digital Look Corporate Solutions and are delayed by at least 15 minutes.

Note 2: RiskGrade figures are provided by RiskMetrics.

 

Vertu Motors Market Data

Currency UK Pounds
Share Price 55.30p
Change Today -1.20p
% Change -2.12 %
52 Week High 75.00
52 Week Low 45.70
Volume 155,505
Shares Issued 348.95m
Market Cap £192.97m
RiskGrade 217

Vertu Motors Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
87.46% above the market average87.46% above the market average87.46% above the market average87.46% above the market average87.46% above the market average
82.61% above the sector average82.61% above the sector average82.61% above the sector average82.61% above the sector average82.61% above the sector average
Price Trend
70.15% above the market average70.15% above the market average70.15% above the market average70.15% above the market average70.15% above the market average
75.51% above the sector average75.51% above the sector average75.51% above the sector average75.51% above the sector average75.51% above the sector average
Income
52.76% above the market average52.76% above the market average52.76% above the market average52.76% above the market average52.76% above the market average
Sector averageSector averageSector averageSector averageSector average
Growth
92.56% above the market average92.56% above the market average92.56% above the market average92.56% above the market average92.56% above the market average
100.00% above the sector average100.00% above the sector average100.00% above the sector average100.00% above the sector average100.00% above the sector average

What The Brokers Say

Strong Buy 1
Buy 0
Neutral 0
Sell 0
Strong Sell 0
Total 1
strong_buy
Broker recommendations should not be taken as investment advice, and are provided by the authorised brokers listed on this page.

Vertu Motors Dividends

  Latest Previous
  Final Interim
Ex-Div 30-Jun-22 16-Dec-21
Paid 29-Jul-22 21-Jan-22
Amount 1.05p 0.65p

Trades for 09-Aug-2022

Time Volume / Share Price
10:44 9,044 @ 55.28p
10:41 4,697 @ 55.30p
10:41 102 @ 55.30p
10:41 2,575 @ 55.30p
10:41 2,307 @ 55.30p

Vertu Motors Key Personnel

CEO Robert Forrester

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