A message from Robert Forrester, CEO of Vertu Motors plc.

results

August 2020 Company Results

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Vertu results, reports and presentations

DateTitleResultsReportsPresentationWebcast
31st August 2020 Interim Results 2020 Download Download Download Watch now









Unaudited interim results for the six month period ended 31st August 2020

Robert Forrester interview on the results

Analyst interview with Mike Allen, Head of Research, Zeus Capital

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





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