Montgomery is still spruiking VTG...He might have a valid point!...

Montgomery is still spruiking VTG...He might have a valid point!

I also topped up on VTG this week.

https://www.livewiremarkets.com/wires/33302

More growth ahead for Vitagroup
Roger Montgomery, Chief Investment Officer, The Montgomery Fund

Vitagroup is a chain of Telstra stores and Telstra Business Centres commenced over 20-years ago under the stewardship of a genuine human Eveready battery, Maxine Horne. The company’s double-digit like-for-like sales are the result of staff productivity improvements, and overall sales growth is a function of a constant process of replacing the bottom 10% of performing stores with new and better locations.

We are confident of double digit like-for-like EBITDA’s for at least two years just from productivity improvements that Management have identified. Last year’s underlying EBITDA was $62m and consensus analysts have $71m forecast for 2017. Therefore the market is only anticipating five per cent organic growth from $67m to $71m. Yet there’s a visible $5.7m to be added in 2017 just from the most recently acquired stores.In addition to the organic growth, many analysts have believed Telstra would limit the company to 100 retail stores. At the full year results announcement the company emerged with 103 stores as Telstra divested and allocated more stores to Vitagroup.