The company released an upbeat trading statement at its annual meeting a fortnight ago, which revealed that, in the four months to end-June, the business has traded ahead of the prior year, posting "like-for-like profit growth in each of the key areas of new retail and used car sales, fleet and commercial sales and vehicle servicing". There was also an increased contribution to profits from dealerships acquired in the previous financial year. Overall, total revenues during the four-month period grew by 11.6 per cent, including like-for-like vehicle revenue growth of over 5 per cent.
This latest update offers some reassurance that Vertu Motors will be able to maintain adjusted EPS at around 3p in the current financial year to end-February 2012, even though the consumer backdrop remains challenging. So with the shares priced at 29.25p, modestly above the level directors have been buying at, they are trading on a lowly prospective PE ratio of 10 and offer a decent 2 per cent dividend yield. In addition, the shares are priced on a huge 40 per cent discount to book value, which looks anomalous given the solid asset backing of the property the company holds and the cash-rich balance sheet. It's well worth following the directors' lead and the shares rate a buy.
Simon Thompson
WS Atkins CEO doubles holding after profit warning
Dr Uwe Krueger, chief executive of WS Atkins, doubled his shareholding by buying 10,000 shares at £6.73 a share, after the shares slumped 10 per cent when the design and engineering consultant warned: "The outlook for the Group’s overall performance for the full year is slightly below previous expectations."
The UK-focused group said trading in home markets was good and has backed this up with a recent £64m Network Rail contract win. However, it warned that there would be increased losses at Peter Brown Construction's 'management at risk' business due to legacy contracts and slowing volumes. The US outlook was also weak due to the forthcoming November presidential elections halting defence spending decisions, and the Middle East business said it experienced project delays.
We still think the shares, at 665p, remain a buy, as the core UK market is improving, there was good news from the Asia Pacific and European business and the Energy business is trading well. Chairman Allan Cook was also confident, picking up 1,450 shares at £6.76 per share.
John Ficenec
Director buys
| Company | Director | Date | No. of shares | Price (p) | Value (£) |
|---|---|---|---|---|---|
| CML Microsystems | Ronald Shashoua | 01 Aug 12 | 5,000 | 290 | 14,500 |
| CML Microsystems | Ronald Shashoua | 02 Aug 12 | 5,230 | 304 | 15,899 |
| CQS Diversified Fund | John de Garis | 02 Aug 12 | 10,000 | 96.5 | 9,650 |
| Devro | Paul Neep | 02 Aug 12 | 2,500 | 300 | 7,500 |
| Energy Technique | Leigh Stimpson | 02 Aug 12 | 1,600,000 | 5 | 80,000 |
| Energy Technique | Martin Reid | 02 Aug 12 | 1,200,000 | 5 | 60,000 |
| Energy Technique | Walter Goldsmith | 02 Aug 12 | 30,000 | 5 | 1,500 |
| European Assets Trust | Sir John Ward | 01 Aug 12 | 2,000 | 571 | 11,420 |
| GKN | Michael Turner | 01 Aug 12 | 100,000 | 210.7 | 210,700 |
| Imperial Innovations | Prof David Begg | 01 Aug 12 | 2,945 | 304 | 8,953 |
| IPSO Ventures | Craig Rochford (ch) | 02 Aug 12 | 500,000 | 2 | 10,000 |
| Jardine Lloyd Thompson | Jonathan Dawson | 01 Aug 12 | 5,000 | 735.8596 | 36,793 |
| Ladbrokes | Ian Bull | 02 Aug 12 | 10,000 | 157.2 | 15,720 |
| Lloyds Banking | Sir Winfried Bischoff | 02 Aug 12 | 200,000 | 30.47 | 60,940 |
| OPG Power Ventures | MC Gupta | 03 Aug 12 | 9,800 | 40 | 3,920 |
| Redhall | Phillip Hilling | 02 Aug 12 | 8,600 | 86 | 7,396 |
| Rolls-Royce | Lewis Booth | 01 Aug 12 | 7,500 | 875.5 | 65,663 |
| Rolls-Royce | Iain Conn | 07 Aug 12 | 292 | 847.5 | 2,475 |
| Treatt | Tim Jones | 01 Aug 12 | 6,425 | 325 | 20,881 |
| TVC | Shane Reihill (ch) | 01 Aug 12 | 1,350,000 | E0.765 | E1,032,750 |
| Vertu Motors | Robert Forrester | 06 Aug 12 | 30,000 | 28.25 | 8,475 |
| Vertu Motors | Michael Sherwin | 06 Aug 12 | 35,264 | 28.25 | 9,962 |
| Vertu Motors | David Forbes | 06 Aug 12 | 100,000 | 28.25 | 28,250 |
| Vertu Motors | Nigel Stead | 06 Aug 12 | 15,000 | 28.25 | 4,238 |
| Vertu Motors | William Teasdale | 06 Aug 12 | 30,000 | 28.25 | 8,475 |
| WS Atkins | Allan Cook | 02 Aug 12 | 1,450 | 676.45 | 9,809 |
| WS Atkins | Dr Uwe Krueger | 02 Aug 12 | 10,000 | 673 | 67,300 |
Director sells
| Company | Director | Date | No. of shares | Price (p) | Value (£) |
|---|---|---|---|---|---|
| Bloomsbury Publishing | Nigel Newton | 06 Aug 12 | 95,513 | 130.00 | 124,167 |
| Burberry | Pascal Perrier | 07 Aug 12 | 20,000 | 1,327.13 | 265,426 |
| Catlin | Paul Brand | 06 Aug 12 | 50,000 | 453 | 226,500 |
| Experian | David Tyler | 06 Aug 12 | 40,000 | 970.59 | 388,237 |
| Rathbone Brothers | Richard Loader | 02 Aug 12 | 5,000 | 1,290.00 | 64,500 |
| Renishaw | Martin Cooney | 30 Jul 12 | 13,673 | 1,500 | 205,095 |
| Scottish Oriental Smaller Cos Trust | Alexandra Mackesy | 26 Jul 12 | 7,600 | 622.50 | 47,310 |
| Unilever | K Kruythoff | 02 Aug 12 | 10,173 | 2,304.02 | 234,388 |
Table compiled by Robert Ansted.
Key to abbreviations: ch = chairman; ce = chief executive; cfo = chief financial officer; fd = finance director; coo = chief operating officer; cs =company secretary; md = managing director
