Vertu results, reports and presentations
Unaudited interim results for the six month period ended 31st August 2020
Robert Forrester interview on the results
Watch the video
Analyst interview with Mike Allen, Head of Research, Zeus Capital
Watch the video
Highlights
- Group well positioned ahead of COVID period with stable experienced management, strong balance sheet and in house technological innovation strategy
- The Group executed strongly during this unprecedented period:
- Adjusted[1] profit before tax of £4.7m delivered in H1 - no exceptional items
- Proactive communication and support for Colleagues during lockdown created momentum
- Excellent cash generation with operating cashflow of £80.0m
- Strong balance sheet with net cash[2] of £36.5m and tangible net assets per share of 46.5p
- Cost reduction programme completed, delivering anticipated annual savings of £10m
- Increasing use of innovative technology capability:
- Omni-channel retail enhancements deployed with good customer uptake levels
- Automation tools implemented to improve process efficiency, aided delivery of cost reduction programme
- Balanced capital allocation approach:
- Acquisitions subject to investment hurdle rates
- Dividends anticipated to return in next financial year dependant on financial performance
(1) Adjusted to remove share based payments and amortisation of intangible assets
(2) Excludes IFRS 16 lease liabilities
Summary and Outlook
- Group has emerged strongly from the lockdown period giving increasing confidence of a strong financial outcome for the financial year as a whole:
- Record beating trading performance from 1 June
- Roll out of new technologies led to increased productivity and enhanced omni-channel retailing capabilities
- Motivated, energised colleagues
- Uncertain market conditions:
- Economy and consumer confidence
- Brexit outcome
- Potential impact of further COVID restrictions
- Strategically well placed to capitalise on opportunities:
- Strong balance sheet gives resilience and ability to fund expansion
- Stable, experienced management team
- Strong relationships with Manufacturer partners
- Scalable platform of well invested systems
- Actively considering several opportunities for Group expansion
- Board confident in the prospects for the Group
Stay in touch
By asking to receive emails from Vertu Motors Investors you agree that we may use your email address to send you notifications when we publish a shareholder announcement on our website. We may also send you other news stories about Vertu Motors from time to time. You can unsubscribe at any time by following the link on the emails. We will not use your email for any other purpose.