Vertu Motors Plc (LON:VTU) is the topic of conversation when Mike Allen, Head of Research at Zeus Capital talks to DirectorsTalk. Mike shares his thoughts on the latest interim results from the company, explains the key performance drivers, and his thoughts on the company valuation.
Vertu Motors Plc is reporting a six-month period of growth in operating profit, earnings per share, dividends and return on sales. The Board remains optimistic about the Group’s growth prospects for the following reasons. The Group’s ungeared balance sheet provides significant capacity to fund growth. The Group has established strong relationships with Manufacturer partners and believes that as the sector increasingly adopts new technologies in vehicles and in distribution models such as e-commerce, these relationships and the Group’s forward-thinking approach, will put the Group in a strong position to increase market share. As a truly national player in the UK and with the Group’s wide portfolio of Manufacturer partners, further expected consolidation of the sector provides a major opportunity.
The Group’s strategy is built on having empowered management and colleagues who are able to deliver outstanding customer experiences locally and in line with local market needs. There is a strong emphasis on the Vision of the Group and the Values with which we operate and these are reflected in the strong awareness by colleagues of the Group’s Vision and Values in all of the Group’s businesses. Linked to this is a deep commitment to develop management and colleagues through leadership development and other training programmes which seek to set the Group apart both as a place to work and in its delivery to customers and to its Manufacturer partners.