Really good interim results from Vertu Motors today.
It looks like they are successfully grabbing market share from larger rivals.
Gearing is modest, cash flow great. You don't giet a dividend at the moment but surley rivals will have to cut theirs
Decent commentary at www.investorschampion.com with peer group comparison

Listen: Renew Holdings (RNWH) - Acquisition of Clarke Telecom Limited

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Vertu Motors - Acquisitions


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Vertu - Acquisition of Bury Land Rover & Bradford Jaguar

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Vertu Motors - Analyst interview, Zeus Capital

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New interesting Mike Alles's analysis for Vertu Motors: http://brrmedia.co.uk/event/138599/mike-allen

ST of IC today - So, with a chart break-out looking imminent, I feel next month's bumper set of half-year results will be the catalyst for the next leg-up in Vertu's share price. Trading on a bid-offer spread of 65.5p to 66p, it's time to bag a bargain off the stock market's forecourt. Buy.

Analysts target prices are 87p (Panmure Gordon), 100p (Liberum Capital) to 107p (Zeus Capital).

Vertu Motors - Acquisition of SHG Holdings Ltd

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Unaudited interim results

Financial Highlights

· Revenues increased by 14.0% to £1,236.1m (2014 H1 : £1,083.9m)

· Record profit before tax up 28.1% to £16.4m (2014 H1 : £12.8m)

· Adjusted1 profit before tax up 27.8% to £17.0m (2014 H1: £13.3m)

· Period end net cash of £32.1m (2014 H1 : £34.4m)

· Very strong cash generated from operations of £37.6m (2014 H1 : £15.9m)

· Earnings per share up 27.8% to 3.82p (2014 H1 : 2.99p)

· Interim dividend up 28.6% to 0.45p per share (2014: 0.35p per share) to be paid in January 2016



Operational Highlights

· Growth strategy progressed with 119 sales outlets in the Group portfolio: greater premium mix

· Record trading performance driven by improvement in recently acquired businesses, existing outlets and growth in higher margin service area

· Total car and van volumes up by 10%

· Service revenues up 6.2% in the core Group

· Service margins strengthened, up to 76.9% from 75.8%

· Strong performance in fleet and commercial sales, with growth in like-for-like margins leading to a strengthening in profitability

· Like-for-like used vehicle volumes increased 4.2%, the 8th consecutive half year of growth

· Operating expenses as a percentage of revenues continues to fall from 9.4% to 9.2%

KEEP an EYE

@ 67.875p ( 67.75 v 68p )

Very good Interims results a couple days ago, Undervalued on a PE basis, order book getting strong just now, with a few buys already and good volume so far. Chart wise should be ready for the turn up and carry on with the uptrend. Indicators the more positive is MACD trying to cross over "0". RSI at 50 and rising with slow stochastic turning up. Brokers reiterates buy
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At year end, much higher now

1-Balance sheet underpinned by freehold and long leasehold property portfolio of £126.6m
2-Net assets of £179.6m (2014: £163.4m):net assets per share of 52.7p
3-Director had a large buy 125K shares last May @ 58.80p

very volatile and looks like some manipulation on the order book by someone, reached 69.75p a bit earlier now 69p+1p
order book DEPTH 20 v 15

Vertu record half year results and broker upgrades.- investors champion

Very good on being the first day on the way up with volume 1.37M

order book still strong with DEPTH of 24 v 20 spread 69.50 v 70p

40K at bid price only 4K at offer price, so soon should be breaking 70p

British Bulls Recommending after closing last Friday

VTU.L VERTU MOTORS
Last Signal:BUY
Last Pattern:BULLISH HOMING PIGEON
Last Close:70p

Interesting note from Edison:
edisoninvestmentresearch- Vertu Update 19 - 10 - 2015

Year end Revenue
Year - (£m) PBT*(£m) EPS*(p) DPS(p) P/E(x) Yield(%)
02/14 -- 1,684.5 - 17.5 - 4.64 - 0.80 - 15.1 - 1.1
02/15 -- 2,074.9 - 22.0 - 5.06 - 1.05 - 13.8 - 1.5
02/16e - 2,350.0 - 25.4 - 5.82 - 1.35 - 12.0 - 1.9
02/17e - 2,500.0 - 27.5 - 6.29 - 1.50 - 11.1 - 2.1

A flurry of trades during the last 30 minutes mostly "AT" got the stock moving till the end with a large "UT" @ 72.25p at over the offer price 72p

16:35:03
72.25p
58,545K UT

reason for the spike:
There was a 70.50p intraday high during the last 3 weeks on moving over that point the spike took hold and that was what cause a "breakout "

Tipped in the IC last 7 September
IC 2015/09/07/comment/simon-thompson/poised-for-a-strong-rally
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A report on day of results 14th October

Cash-rich Vertu Motors shrugs off VW scandal
By Harriet Mann | Wed, 14th October 2015 - 13:09

Vertu record profit
With a strong consolidation strategy and more expensive cars in its showrooms, car dealer Vertu Motors (VTU) has just reported record interim profit growth and its eighth consecutive half-year increase in like-for-like used car sales. Even the unfortunate timing of its VW dealership acquisition is paying off, so far.

Just ten days after the Volkswagen diesel emissions scandal blew up, Vertu said it had paid £12.8 million for VW and Audi dealerships, with a further £1.5 million deferred. Although it's early days, management has not seen any significant decline in the operations.

"I'm interested in making shareholder value in the long-term and I'm not going to let short-term stuff get in the way, if I am honest," chief executive Robert Forrester told Interactive Investor. "But it's a great acquisition for us and it is a very high-performing business."

Vertu's 119 car dealerships, which now include more premium brands like Jaguar and Audi, generated revenue of £1.2 billion in the six months ended 31 August, up 14%. That dropped through to pre-tax profit of £16.4 million, up 28% and a new record, giving earnings per share of 3.82p. Strip out amortisation of intangible assets, and profit hit £17 million.

Vertu Motors VW scandal

And over 80,000 people are now paying for Vertu's higher margin service plans every month, with customers locked in for three years. Revenue here jumped by 6.2% jump to £93.8 million, but margins are significantly higher than elsewhere in the business – gross margin is 44% versus 7.3% for the new car retail division. After an "absolute stellar performance" in the group's largest profits-maker, the aftersales division now represents 8% of group sales.

Another core part of the business, used cars are the group's second largest profits contributor, generating £42 million in the period. "Our business does well when we are good at used cars," said Forrester.

'Grow or die'

The group hasn't turned its back on volume dealerships, either, adding VW brand Skoda and France's Renault forecourts to its portfolio. With the mantra "grow or die" and the capacity for further consolidation, Forrester is keeping his eyes peeled for further consolidation opportunities. With no debt and over £32 million cash in the bank, the boss knows what he wants.

"I got an information memorandum at 20:02, and by 20:06 I had turned it down. We haven't got time to mess about with things, if it's not for us then we don't do it," he said.

Cash generated from operations more-than doubled to £37.6 million in the six months, which has allowed management to raise January's interim dividend by 29% to 0.45p per share. Every Friday night management get a written report on each aspect of cash management - in their own words they are "on it like a rash".

"We put a lot of effort into working capital management and a lot of things went right for us," explained Forrester. "On a £2.4 billion business, our cash flows fluctuate wildly, but in this period it was good. If we make profit we like to turn it into cash, it's very important."

The group's fleet division is the least cash generative aspect of the business, new cars is "pretty good" - as payment is made before collection - and, although the group's £70 million worth of used car stock absorbs a lot of cash, aftersales has an industry-leading 115% return on investment. The services business is also good for working capital as it receives cash in advance from the 80,000 customers paying monthly for the service.

"It's complicated and it varies across the streams, but we just have to manage it tightly," Forrester explains.

Things are looking good for the sixth-largest car dealership for the rest of the year.

"The outlook is pretty positive and the UK economy continues to grow. So as long as we have a positive economy we will be in a good place. But actually aftersales is very defensive, so even if car sales dip you can still grow aftersales for five years because it is very slow in its build-up.

Vertu currently trades on about 12.5 times forward earnings, although that includes over 9p of cash per share. Strip it out and the ratio drops to an inexpensive 10.8 times.

BREAKOUT
72.75p +0.50p

My comments somewhere else...

Today 13:21
the bounce is on from the large sells this morning taking advantage of yesterday's large rise
offer @ 71.25p at the moment but looks like is going to go to 72p very soon by the look of it
Today 14:24
going going gone, now 72p is now the new offer and with time looks ready to go also.
so we could be for a higher Breakout today
Today 15:01
The early 72p trades at offer are gone........ but they have added another 15K, it seems they have them on the bolt waiting, wonder if there is many more to add, cuz they are being taking as "AT" on small trades every so often
Today 15:19
72p offer gone now we could have another spike like yesterday, just need a MM to be taken and 74p here we come
Today 15:41
Is not 4pm yet and 74p offer being reached, now to go over that will be more difficult today as there is plenty of MMs and trades at this price, but by the pace of today trading one never knows.
We are on a BREAKOUT position ( there was an intraday of 73.75p last month, about a month now ) at this points the share price can run very fast.

74p +1.74p
And despite the lower offer at the end the UT ( closing price ) was @ 74p with a large trade

16:35:24
74.00p
59,946 UT

The expects tell you ........ never trade before 9am a share that is on the order book system.
the reason is during that time the spread is very large, so waiting til then is a good omen.
It was after 9am that VTU started warming up today and still is on this process but the bid and offer are already higher than yesterday's close, so up on the day