Simbr
15 Jun 2016
15% underperformance Panmure note out this morning..."Despite 15%+ underperformance in VTU’s shares against peers YTD, we... following a review of free cash flow, working capital and capex. VTU’s model is impressive, and we believe that P&L forecasts are deliverable, but with signals pointing to a more challenging macro canvas, we need a higher FCF yield to compensate for the uncommonly high dependency, in our view, on capricious working capital flows." (taken from research tree)
mildmouth
07 Jun 2016
Re: goodwill bad policy? I think you are right in every way (and I wonder who you are??!OK not actually asking that question!), northern pike hunter! The management at Vertu are strong and the diversification of brands is a good defensive position. I even own just a tickle of shares myself! though ready to offload if they rise much.However, I believe I am also correct in that in the tough market which will come (not sure when, but it will), those who have expanded based on paying large amounts of goodwill in this business will suffer a lot of stress on shareholder value.
valeite
07 Jun 2016
Re: goodwill bad policy? agree with your comments about vertu .i also like autotrader and bca marketplace
northern pike hunter
07 Jun 2016
Re: goodwill bad policy? My belief Mildmouth is that motors traders are at the mercy of the market and the manufacturers but some are more resilient than others. After over thirty years working with dealer groups, I would like to point out that the Vertu Group has an excellent management team and an increasingly diverse portfolio of brands. I have a substantial investment in Vertu but not in any other groups. I believe that it has the greatest potential for growth and a sustained increase in shareholder value.
ddz
07 Jun 2016
Re: goodwill bad policy? Perhaps investing in the motortrade isn't for you then?
mildmouth
06 Jun 2016
Re: goodwill bad policy? Thank you for the reassurance and I am sure you are right, however, my point is that even if you apply all the rules the write-down of goodwill is almost entirely subjective. If the market dips, as it has to sooner or later, which would lead to a fall in profits then potentially some or all that goodwill should be a write-off.Marshall Motor Holdings is expanding on just the same basis and I have the same worry. I am old enough to remember buying European Motor Holdings at a massive discount to net assets, which proved to be a great investment, but I would not rate any motor dealer at much of a premium to net assets as they are totally at the mercy of the manufacturers and the market. Short term, the shares may move forward.
theprior
03 Jun 2016
Re: vertu 60p paid at 15.08 today, shortly followed by several others but then a slight retrace to 59.93 
)TP
ddz
03 Jun 2016
Re: goodwill bad policy? Having been employed by Reg Vardy plc previously I can tell you that the accounting within this business will be beyond reproach. This company is run by some of the most competent people in the motortrade.P.s. I do not work for Vertu now or any other plc motor group.
valeite
02 Jun 2016
Re: goodwill bad policy? a good appraisal of risk in the business....always concerned how decisions made in good times will stack up in bad times .you have to remember that shares always climb a wall of worry .
mildmouth
02 Jun 2016
goodwill bad policy? tangible assets at Feb 2016 were 38p and same at Feb 2015goodwill per share at Feb 2016 was 20p per share against 14p in 2015.Now they have bought Lamb for another large slug of goodwill.All this is fine so long as the market continues strong, but if it falters and if the goodwill write-down policy has not been aggressive (and it is very open to subjectivity until profits falter) then the result would be very unpleasant.Look out for this and all other motor companies where increased earnings are based on acquisitions involving large amounts of goodwill paid in a strong market. This business is cyclical and the very long upward cycle will undoubtedly create casualties on its way back down.Meantime the momentum may well still create some upside...... for now
g austin
02 Jun 2016
telegraph says buy Tipped as a buy in today's Daily Telegraph
tommytomata
01 Jun 2016
vertu All this good news over the last month is certainly helping the share price. I'm really glad the news wasn't negative!! Anyway i'm in. Toot toot. Any thoughts when Vertu will crash through the 60p mark i need my holiday money by September.. I was actually hoping for 80p
Simbr
01 Jun 2016
Vertu making strong acquisition "As expected, Vertu is deploying the equity capital from the placing quickly, this time acquiring a long established business comprising of five outlets in Chesterfield and Derby. This is a strong geographic region for the Group and adds further scale to its Land Rover, Skoda and Nissan franchise. In addition, this also adds Toyota as a new brand partner. We anticipate this transaction to be EPS enhancing from the outset, and believe Vertu has acquired this for an EV/EBITDA multiple of 6x." just pulled this from Zeus's note from this morning from Research tree.
Simbrad
01 Jun 2016
Zeus' note out this morning on Research Tree... "As expected, Vertu is deploying the equity capital from the placing quickly, this time acquiring a long established business comprising of five outlets in Chesterfield and Derby. This is a strong geographic region for the Group and adds further scale to its Land Rover, Skoda and Nissan franchise. In addition, this also adds Toyota as a new brand partner. We anticipate this transaction to be EPS enhancing from the outset, and believe Vertu has acquired this for an EV/EBITDA multiple of 6x, which is in line with its stated..."
theprior
01 Jun 2016
RNS X 2 New director who can certainly help us to see where we are and where we're going.Further acquisitions which are earnings enhancing in their first year.Good news on both fronts.TP
