Vertu Motors
Website:
Vertu Motors
Index:
AIM
EPIC: VTU
Supersector:
Retail
Sector:
General Retailers
Subsector:
Specialty Retail
Market Cap:
£196M
Payout Frequency: Semi-Annual
Vertu Motors Dividend Analysis and Summary
Key Dividend Details
- Interim dividend declared: 0.90p per share (unchanged YoY).
- Ex-dividend date: 11/12/2025.
- Record date: 12/12/2025.
- Payment date: 16/01/2026.
- Prior full-year dividend (FY25): 2.05p per share.
- Rationale: maintained “reflecting the strength of the balance sheet and Board confidence.”
Sustainability and Outlook
- Earnings cover: H1 FY26 adjusted EPS 4.57p covers the interim ~5.1x; FY25 adjusted EPS 6.58p vs DPS 2.05p (~3.2x cover). Coverage looks robust.
- Cash generation: H1 free cash flow of £0.4m (vs outflow last year) alongside disciplined costs and strong aftersales margins (aftersales gross margin 44.7%) support dividend affordability.
- Balance sheet/leverage: Net debt (ex-leases) £78.3m (Feb-25: £66.6m); manageable given scale and facilities, but trending modestly higher.
- Capital allocation: Active buyback programme (£5.6m in H1; £7.0m spent by 30 Sep 2025 out of £12m) reduces share count, enhancing per-share dividend capacity even if total cash outlay is held steady.
- Earnings outlook: Underlying FY26 PBT expected in line with consensus excluding the one-off JLR cyber impact (up to £5.5m PBT headwind), with potential insurance recovery. Near-term caution but medium-term support intact.
Structural or Policy Factors Affecting Future Dividends
- Agency model shift for MINI (from 1 Mar 2025) changes revenue recognition and working capital dynamics; may stabilise margins but can dampen reported revenue growth.
- Single-brand rebrand to Vertu completed; near-term marketing spend uplift but expected ongoing cost efficiencies.
- Portfolio actions: openings (three new BYD outlets by Nov-25), selective closures/refranchising, and surplus property disposals (£3.3m proceeds) – supportive to long-term returns and cash discipline.
- Service plan funds and new Consumer Savings Scheme rules (from 1 Jan 2026): may require insurance or ring-fenced trust. If funds move to trust, cash may be less available for general purposes; reported net debt metrics will change.
- Ongoing buybacks (>19% of shares repurchased since 2017) structurally support per-share distributions.
Risks and Flags to Dividend Stability
- JLR cyber-attack: anticipated one-off up to £5.5m FY26 adjusted PBT impact; insurance claim underway but uncertain timing/extent.
- Market conditions: weak retail new car demand, ZEV mandate pressure, and Motability softness (H1 Motability volumes down ~22% LfL) could weigh on near-term earnings.
- Regulatory risk: FCA motor finance redress scheme consultation introduces uncertainty. Proposal targets lenders, but sector-wide impacts bear monitoring.
- Tax/ECOS change: Potential up to £2.5m annual cost increase from Oct 2026 (medium-term headwind).
- Working capital and stocking: higher manufacturer stocking charges and elevated inventories in a soft new car market require continued discipline.
- Start-up/brand mix: ramp-up losses from new outlets (e.g., Chinese brands) and closures can temporarily dilute margins.
Read more
Vertu Motors Annual Dividend Yield - 3.27%
Dividends Used in Calculation:
| Ex-Dividend Date |
Payment Date |
Type |
Amount |
Currency |
| 12/12/2024 |
17/01/2025 |
Interim |
0.90p |
GBX |
| 26/06/2025 |
25/07/2025 |
Final |
1.15p |
GBX |
Total (Annual Dividends Per Share):
2.05p
Dividend Yield =
Annual Dividends Per Share (2.05p)
÷ Share Price (62.7p)
= 3.27%
Vertu Motors Dividend History
| Ex Dividend Date |
Payment Date |
Type |
Amount |
Currency |
| 11/12/2025 |
16/01/2026 |
Interim |
0.90p |
GBX |
| 26/06/2025 |
25/07/2025 |
Final |
1.15p |
GBX |
| 12/12/2024 |
17/01/2025 |
Interim |
0.90p |
GBX |
| 27/06/2024 |
26/07/2024 |
Final |
1.50p |
GBX |
| 14/12/2023 |
19/01/2024 |
Interim |
0.85p |
GBX |
| 29/06/2023 |
28/07/2023 |
Final |
1.45p |
GBX |
| 15/12/2022 |
20/01/2023 |
Interim |
0.70p |
GBX |
| 30/06/2022 |
29/07/2022 |
Final |
1.05p |
GBX |
| 16/12/2021 |
22/01/2022 |
Interim |
0.65p |
GBX |
| 16/12/2021 |
21/01/2022 |
Interim |
0.65p |
GBX |
| 05/12/2019 |
17/01/2020 |
Interim |
0.60p |
GBX |
| 27/06/2019 |
29/07/2019 |
Final |
1.05p |
GBX |
| 06/12/2018 |
18/01/2019 |
Interim |
0.55p |
GBX |
| 21/06/2018 |
30/07/2018 |
Final |
0.95p |
GBX |
| 07/12/2017 |
19/01/2018 |
Interim |
0.55p |
GBX |
| 29/06/2017 |
31/07/2017 |
Final |
0.90p |
GBX |
| 22/12/2016 |
20/01/2017 |
Interim |
0.50p |
GBX |
| 23/06/2016 |
26/07/2016 |
Final |
0.85p |
GBX |
| 24/12/2015 |
22/01/2016 |
Interim |
0.45p |
GBX |
| 25/06/2015 |
28/07/2015 |
Final |
0.70p |
GBX |
| 29/12/2014 |
23/01/2015 |
Interim |
0.35p |
GBX |
| 25/06/2014 |
29/07/2014 |
Final |
0.50p |
GBX |
| 23/12/2013 |
24/01/2014 |
Interim |
0.30p |
GBX |
| Year |
Interim |
Final |
Currency |
Total |
Change |
| 2024 |
0.900 |
1.500 |
GBX |
2.400 |
4.340 |
| 2023 |
0.850 |
1.450 |
GBX |
2.300 |
31.420 |
| 2022 |
0.700 |
1.050 |
GBX |
1.750 |
34.610 |
| 2021 |
1.300 |
|
GBX |
1.300 |
-21.210 |
| 2019 |
0.600 |
1.050 |
GBX |
1.650 |
10.000 |
| 2018 |
0.550 |
0.950 |
GBX |
1.500 |
3.440 |
| 2017 |
0.550 |
0.900 |
GBX |
1.450 |
7.400 |
| 2016 |
0.500 |
0.850 |
GBX |
1.350 |
17.390 |
| 2015 |
0.450 |
0.700 |
GBX |
1.150 |
35.290 |
| 2014 |
0.350 |
0.500 |
GBX |
0.850 |
183.330 |
| 2013 |
0.300 |
|
GBX |
0.300 |
|
Vertu Motors Dividend Calculator
Vertu Motors Dividend Growth
| Dividend Growth (1Y) |
-14.58%
|
| Dividend CAGR (5Y) |
25.83%
|
| Years of Growth |
3
|
| Payout Ratio |
40.19%
|
| Buyback Yield |
3.02%
|
| Shareholder Yield |
6.27%
|
| P/E Ratio (TTM) | 13.43 |
|---|
| Forward P/E | 13.08 |
|---|
| P/FCF | 3.47 |
|---|
| Earnings Yield | 8.38% |
|---|
| FCF Yield | 28.85% |
|---|
| ROE | 4.51% |
|---|
| ROCE | 12.89% |
|---|
| Profit Margin | 0.34% |
|---|
| Operating Margin | 1.64% |
|---|
| Gross Margin | 11.28% |
|---|