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Vertu

November 2013

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

  • Epic Code:
  • VTU
  • Price:
  • 60.5p
Strong interims to end August from Vertu, the sixth largest car dealership in the UK. Including three months from the recently acquired and fantastically performing Landrover dealerships in Yorkshire (Vertu's first premium brand acquisition), sales were up a third at £837m (+12.4% like-for-like), pretax profit was up 80% to £8.8m and eps was up 30% to 2.6p (due to the additional shares from the recent placing). Net cash stands at £25.7m.The like-for-like volume of new cars sold in the period was up 19.6% (at 12,700 units) against 16.8% for the industry.     One obvious worry now is that the comparators are so strong that Vertu (like all dealerships) will record falls, if not next year then the year after. ...

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With small companies there is an above average degree of risk compared to buying blue chips. Please be aware that we have not assessed the suitability of any of these investments for you. The newsletter simply states a personal view and diarises the editor’s investment decisions. Please speak to your stockbroker or other qualified individual to ascertain whether any of these companies mentioned would form useful additions to your own portfolios. Past performance is no indication of future success.

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