Vertu’s acquisition of Helston Garages Group has completed and we have updated our forecasts, increasing FY24 and FY25 EPS by 18.7% and 24.7%, respectively. This debt-financed transaction takes our forecast FY23 net debt to £105m (incl. stocking loans) or 1.4x EBITDA, but we anticipate this to fall to c. 1.0x EBITDA by FY25. Our updated valuation is now 105.9p per share, offering 102.4% potential upside to investors.
19 Dec 2022
Vertu Motors PLC (VTU LN) - Helston completion
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Vertu Motors PLC (VTU LN) - Helston completion
Vertu Motors PLC (VTU:LON) | 68.2 -0.3 (-0.6%) | Mkt Cap: 230.4m
- Published:
19 Dec 2022 -
Author:
Carl Smith, CFA -
Pages:
19
Vertu’s acquisition of Helston Garages Group has completed and we have updated our forecasts, increasing FY24 and FY25 EPS by 18.7% and 24.7%, respectively. This debt-financed transaction takes our forecast FY23 net debt to £105m (incl. stocking loans) or 1.4x EBITDA, but we anticipate this to fall to c. 1.0x EBITDA by FY25. Our updated valuation is now 105.9p per share, offering 102.4% potential upside to investors.