Vertu Motors plc (LON:VTU) is the topic of conversation when Mike Allen, Head of Research at Zeus Capital joins DirectorsTalk. Mike talks us through the interim highlights, the key drivers, the approach to forecasting, a company valuation and why Mike thinks it should be a successful consolidation.
Questions that we put to Mike were:
- Can you talk us through H1 results?
- Were there any other key drivers?
- What approach did you take when forecasting?
- How do you view the company in terms of a valuation?
- Why do you think it should be a successful consolidation?
Vertu Motors is the fifth largest automotive retailer in the UK with a network of 133 sales outlets across the UK. Its dealerships operate predominantly under the Bristol Street Motors, Vertu, Farnell and Macklin Motors brand names.
Vertu was established in November 2006 with the strategy to consolidate the UK motor retail sector. It is intended that the Group will continue to acquire motor retail operations to grow a scaled dealership group. The Group’s acquisition strategy is supplemented by a focused organic growth strategy to drive operational efficiencies through its national dealership network. The Group currently operates 130 franchised sales outlets and 3 non-franchised sales operations from 110 locations across the UK.