Vertu Motors (VTU)

Sector:

Retailers

Index:

FTSE AIM All-Share

55.10p
   
  • Change Today:
    -1.40p
  • 52 Week High: 75.00
  • 52 Week Low: 45.70
  • Currency: UK Pounds
  • Shares Issued: 348.95m
  • Volume: 247,658
  • Market Cap: £192.27m
  • RiskGrade: 217

Pendragon sees profits motor ahead

By Abigail Townsend

Date: Wednesday 30 Jun 2021

LONDON (ShareCast) - (Sharecast News) - Pendragon is predicting a consensus-beating end to the year, after pent-up demand and supply shortages saw profits surge in the second half.
In common with rival car dealerships, Pendragon - which owns the Stratstone and Evans Halshaw brands - has seen strong trading since non-essential retail was allowed to reopen on 12 April.

The car dealership said it had benefited from high demand coupled with supply constrains in the second-hand market, which was pushing up prices. A global semiconductor shortage is affecting the supply of both new and used cars worldwide.

Coupled with "particularly strong" conditions in May and June, the firm now expects to post underlying pre-tax profits of around £30m in the first half, compared to a loss of £31.0m a year previously.

Pendragon also reinstated its guidance for the full year. It conceded uncertainty around supply shortages and the ongoing pandemic remained. "As a result, there remains a wide range of possible outcomes for the full-year.

"However, the group now has more visibility on the outlook that at the height of the pandemic and is therefore in a potion to reinstate guidance."

Underlying pre-tax profits for 2021 are expected to be in the range of £45m-£50m, compared to 2020's figure of £8.2m. Analysts had pencilled in pre-tax profits of around £29m.

Pendragon said: "The board continues to believe that the group's strategy positions it well to respond to the ongoing market uncertainty and remains confident in the long-term outlook."

As at 1015 BST, shares in the stock were ahead 2% at 18.82p.

Sanjay Vidyarthi, analyst at Liberum, said: "In common with other motor retailers, Pendragon has seen a strong second quarter, with outperformance in new cars and high margins in used cars due to supply constraints.

"The key here will be how the situation normalises in 2022 and whether pre-tax profit growth can be achieved as supply and margins normalise. With the market supporting all the motor retailers, our preference remains for those with the strongest business models, track records and balance sheets, namely Vertu and Motorpoint."

Liberum has a 'hold' rating on Pendragon and an 18p target price.

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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 55.10p
Change Today -1.40p
% Change -2.48 %
52 Week High 75.00
52 Week Low 45.70
Volume 247,658
Shares Issued 348.95m
Market Cap £192.27m
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
12:07 7,865 @ 55.40p
11:43 1,346 @ 55.10p
11:43 2,000 @ 55.10p
11:43 5,176 @ 55.20p
11:43 646 @ 55.20p

Vertu Motors Key Personnel

CEO Robert Forrester

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