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“Fantastic” is how Barry Whittles, chief executive of Just Car Clinics (JCC), describes business during the recent snow. Indeed he wishes it would snow until June!
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2009 results were unexciting due to reduced road usage because of the recession and private motorists less able or willing to pay for minor prangs; indeed the overall number of individual repair jobs probably fell by between 10 and 15 per cent last year.
But, legislation could soon give a boost to JCC as the motor repair industry now has a BSI Kitemark standard to meet and already there are three motor insurers who will usually only authorise repairs from workshops who have met the Kitemark requirement. As a result, Mr Whittles reckons that over the next two to three years, the number of motor repair shops could drop from up to 3,500 to between 1,200 and 1,500. Meanwhile the company is continuing to seek additional add-on depots. During 2009 it purchased two more sites in Stourbridge and Redditch in the West Midlands - so making 25. Target areas are also around Northampton and in its north-east heartland. JCC has started selling tyres and is going to roll out a mobile service to treat dents and scuffs at home. Broker Brewin Dolphin expects a slight rise to £1.3m in 2010 profits on sales of £45m.
JUST CAR CLINICS (JCR) |
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|---|---|---|---|---|
| ORD PRICE: | 49p | MARKET VALUE: | £7.09m | |
| TOUCH: | 47-50p | 12-MONTH HIGH: | 66.5p | LOW: 40.5p |
| DIVIDEND YIELD: | 3% | PE RATIO: | 9 | |
| NET ASSET VALUE: | 30p* | NET DEBT: | 30% | |
| Year to 31 Dec | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2005 | 24.9 | 0.58 | 3.8 | nil |
| 2006 | 27.8 | 0.87 | 4.6 | nil |
| 2007 | 26.8 | 1.19 | 5.8 | 1.50 |
| 2008 | 42.6 | 1.31 | 5.9 | 1.60 |
| 2009 | 42.9 | 1.15 | 5.6 | 1.63 |
| % change | +1 | -12 | -5 | +2 |
Ex-div:3 March Payment:1 April Aim: Vehicle distribution *Including intangibles of £2.08m, or 14p a share |
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Last IC view: Good value, 55.5p, 15 September 2009.
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