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1. Company Snapshot

1.a. Company Description

Vertu Motors plc operates as an automotive retailer in the United Kingdom.The company sells new and used cars and motorcycles, motability cars, and commercial vehicles, as well as provides related aftersales services.It operates 150 chain of franchised dealerships offering sales, service, parts, and bodyshop facilities for new and used cars, and commercial vehicles under the Bristol Street Motors, Macklin Motors, and Vertu Motors.


The company's franchise dealerships include Audi, BMW, Honda, Jaguar, jeep, Kia, Land Rover, Mercedes-Benz, Mercedes-AMG, MINI, smart, Toyota, Volkswagen, Citroen, CUPRA, Dacia, DS, Ford, Hyundai, Mazda, MG, Nissan, Peugeot, Renault, SEAT, SKÖDA, and Vauxhall.In addition, it operates as a pension scheme trustee; and provides vehicle financing and related insurance products.Further, the company is involved in the online van and parts retailing; and online advertising businesses.


It operates through a network of 160 sales and aftersales outlets in 121 locations.Vertu Motors plc was incorporated in 2006 and is headquartered in Gateshead, the United Kingdom.

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1.b. Last Insights on VTU

Vertu Motors' recent performance was driven by a promising UK market outlook, with investors seeking opportunities in penny stocks. The company's focus on electric cars, following the prediction of steep price cuts, presents a growth opportunity. Additionally, the UK market's shift towards net zero rules is expected to trigger deeper electric car discounts, benefiting Vertu Motors. Furthermore, the company's strong financials and clear growth path make it an attractive option for investors.

1.c. Company Highlights

2. Transcript Summary

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3. NewsRoom

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EV tax to drive up price of new petrol cars

Nov -29

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ActiveOps And 2 Other UK Penny Stocks Worth Watching

Nov -14

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October 2025's Top UK Penny Stocks Revealed

Oct -16

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Vertu Motors warns of up to £5.5m hit to yearly profits from JLR shutdown

Oct -08

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UK's Vertu Motors sees up to $7.4 million hit from JLR cyberattack

Oct -08

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UK's Vertu Motors sees up to $7.4 million hit from JLR cyberattack

Oct -08

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3 UK Dividend Stocks Yielding Up To 6.3%

Sep -26

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Cavendish And 2 Other Promising UK Penny Stocks To Watch

Sep -11

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (7.48%)

6. Segments

Used Cars

Expected Growth: 7%

Vertu Motors plc's 7% growth in used cars is driven by increasing demand for affordable vehicles, expansion of online marketplaces, and strategic dealership acquisitions. Additionally, the company's focus on providing high-quality vehicles, competitive pricing, and excellent customer service has contributed to its market share growth.

New Car Retail and Motability

Expected Growth: 9%

Vertu Motors plc's 9% growth in New Car Retail and Motability segments is driven by increasing demand for new vehicles, government incentives for eco-friendly cars, and a strong online presence. Additionally, the company's focus on customer experience, strategic partnerships, and efficient supply chain management contribute to its growth.

New Fleet and Commercial

Expected Growth: 6%

Vertu Motors plc's New Fleet and Commercial segment growth of 6% is driven by increasing demand for fleet vehicles, strategic partnerships with major manufacturers, expansion into new geographic markets, and a focus on digital sales platforms. Additionally, the company's investment in employee training and customer service has improved sales conversion rates, contributing to the segment's growth.

Aftersales

Expected Growth: 8%

Vertu Motors' aftersales growth driven by increasing vehicle parc, rising average mileage, and higher repair frequency. Additionally, the company's focus on customer retention, extended warranty sales, and strategic acquisitions have contributed to the 8% growth. Furthermore, investments in digital platforms and process efficiencies have enhanced the customer experience, leading to increased loyalty and repeat business.

7. Detailed Products

New Cars

Vertu Motors plc sells new cars from various manufacturers such as Ford, Volkswagen, and Nissan, offering a wide range of models to suit different customer needs and preferences.

Used Cars

Vertu Motors plc offers a vast selection of used cars from various manufacturers, providing customers with a wide range of options to fit different budgets and requirements.

Aftersales Services

Vertu Motors plc provides aftersales services, including servicing, repairs, and maintenance, to help customers keep their vehicles in good condition.

Motability Scheme

Vertu Motors plc participates in the Motability Scheme, which enables disabled people to exchange their mobility allowance for a new car.

Fleet Sales

Vertu Motors plc offers fleet sales services to businesses, providing a range of vehicles and tailored solutions to meet their specific needs.

Vehicle Financing

Vertu Motors plc offers financing options to help customers purchase their desired vehicle, including personal contract purchase, hire purchase, and personal loans.

8. Vertu Motors plc's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Vertu Motors plc is medium due to the presence of alternative modes of transportation and the increasing popularity of electric vehicles.

Bargaining Power Of Customers

The bargaining power of customers for Vertu Motors plc is low due to the lack of negotiating power and the high switching costs.

Bargaining Power Of Suppliers

The bargaining power of suppliers for Vertu Motors plc is medium due to the presence of multiple suppliers and the moderate level of dependence on them.

Threat Of New Entrants

The threat of new entrants for Vertu Motors plc is low due to the high barriers to entry and the significant capital requirements.

Intensity Of Rivalry

The intensity of rivalry for Vertu Motors plc is high due to the presence of multiple competitors and the high level of competition in the market.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 28.71%
Debt Cost 8.96%
Equity Weight 71.29%
Equity Cost 8.96%
WACC 8.96%
Leverage 40.27%

11. Quality Control: Vertu Motors plc passed 5 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Momentum: 7.0

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A-Score: 5.9/10

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Growth: 6.1

Quality: 2.8

Yield: 5.6

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

0.64$

Current Price

0.64$

Potential

-0.00%

Expected Cash-Flows