Vertu has reported another record performance for H1 2017, with adjusted EPS +4% ahead of our expectations. We are maintaining our FY forecasts despite softer new car sales, as we have confidence in its aftersales and used car business accounting for 72% of gross profit. The shares and indeed the sector look oversold to us, and while there could be modest earnings downside in 2017, we believe more significant EPS risk has been factored in.

12 Oct 2016
Solid foundations in place

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Solid foundations in place
Vertu Motors PLC (VTU:LON) | 59.2 0.1 0.3% | Mkt Cap: 206.6m
- Published:
12 Oct 2016 -
Author:
Mike Allen -
Pages:
15 -
Vertu has reported another record performance for H1 2017, with adjusted EPS +4% ahead of our expectations. We are maintaining our FY forecasts despite softer new car sales, as we have confidence in its aftersales and used car business accounting for 72% of gross profit. The shares and indeed the sector look oversold to us, and while there could be modest earnings downside in 2017, we believe more significant EPS risk has been factored in.