TIDMJCR
RNS Number : 9495Y
Just Car Clinics Group PLC
14 September 2009
+--------------------------------------+---------------------------------------+
| For immediate release | 14 September 2009 |
+--------------------------------------+---------------------------------------+
Interim Results
Just Car Clinics Group plc ("Just Car Clinics"), the independent collision
repair chain with 23 vehicle repair centres, today announces its interim results
for the six months ended 30 June 2009.
Highlights:
* Revenue up 1.9% to GBP21.6 million (2008: GBP21.2 million) but the difficult
economic climate resulted in a like for like turnover fall of 4.0%
* Tight cost control has ensured continued profitability, with profit before
taxation of GBP563,000 (2008: GBP647,000)
* EPS down 6.9% to 2.7p (2008: 2.9p)
* Strong operating cash flow maintained at GBP1.2 million and net debt reduced by
GBP0.5 million
* Strong balance sheet with committed bank facilities of GBP3.8 million, only
GBP1.3 million utilised
* Interim dividend unchanged at 0.53p per share reflecting confidence in the
business prospects
Commenting on the results, Barry Whittles, Chief Executive of Just Car Clinics,
said:
"Set against a tough economic backdrop, I am pleased with the Group's
performance during the six months to 30 June 2009. We remain very profitable and
with our established management team and strong balance sheet I believe that we
are well placed within the industry and I remain very confident of the prospects
for the Group"
+--------------------------------------------+----------------------------+
| For further information, please contact: | |
+--------------------------------------------+----------------------------+
| | |
+--------------------------------------------+----------------------------+
| Just Car Clinics: | |
+--------------------------------------------+----------------------------+
| Barry Whittles, Chief Executive | 07850 268369 |
+--------------------------------------------+----------------------------+
| Chris Elton, Finance Director | 07702 598344 |
+--------------------------------------------+----------------------------+
| | |
+--------------------------------------------+----------------------------+
| Buchanan Communications: | |
+--------------------------------------------+----------------------------+
| Tim Thompson / Chris McMahon | 020 7466 5000 |
+--------------------------------------------+----------------------------+
Chairman's Statement for the six months ended 30 June 2009
Introduction
Just Car Clinics Group plc ("the Group") has responded proactively to the
prevailing economic climate and during the first six months of 2009 has
maintained a strong operating cash flow and recorded only a slight fall in
profitability. This performance reflects the underlying resilience of the
business to macroeconomic conditions and follows a period of sustained growth in
profitability for each of the previous five years.
Trading highlights
+---------------------------------+---------------+---------------+
| | 6 months to | 6 months to |
+---------------------------------+---------------+---------------+
| | 30.06.09 | 30.06.08 |
+---------------------------------+---------------+---------------+
| Revenue (GBP'000) | 21,598 | 21,199 |
+---------------------------------+---------------+---------------+
| Gross margin | 41.2% | 42.3% |
+---------------------------------+---------------+---------------+
| Profit margin | 2.6% | 3.1% |
+---------------------------------+---------------+---------------+
| Profit before taxation | 563 | 647 |
| (GBP'000) | | |
+---------------------------------+---------------+---------------+
| Basic earnings per share | 2.7p | 2.9p |
+---------------------------------+---------------+---------------+
| Operating cash flow (GBP'000) | 1,232 | 1,244 |
+---------------------------------+---------------+---------------+
| Interim dividend per share | 0.53p | 0.53p |
+---------------------------------+---------------+---------------+
Results
Revenue for the six months ended 30 June 2009 increased by 1.9% to GBP21.6
million (2008: GBP21.2 million) including contributions from acquisitions during
2008. After adjusting for the impact of sites acquired last year, revenue
decreased on a like for like basis by 4.0%, when compared to the equivalent
period.
Mandatory vehicle insurance means that the accident repair market is broadly
insulated from the wider economic climate. However, reduced road usage has
resulted in fewer collisions and this together with reluctance by retail
customers to incur insurance excess payments, has adversely affected volumes
across the industry. The Group has sought additional business with fleet and
local businesses, and has extended its offering to include light cosmetic
repairs, tyre fitting and car servicing at selected locations. These have, to
some extent, mitigated the impact of the adverse market conditions.
As set out in the 2008 Annual Report, gross margins during last year were
adversely affected by reduced margins at more recently acquired sites,
variability in weekly repair volumes resulting in reduced efficiency and the
difficulty of passing cost increases on to customers in the prevailing economic
climate. These factors have continued to affect margins in 2009 and the overall
gross margin of 41.2% is in line with that recorded in the second half of
2008, although lower than the 42.3% achieved in the first half of last year.
The Group has responded to the difficult market conditions by continuously
reviewing structures and associated operating costs. A combination of cost
reductions at some locations and a flexible approach to moving people and other
resources in order to align capacity and available volumes on a weekly
basis, have mitigated the effect of variable and reduced repair volumes. As a
result, operating costs have been reduced from 39.1% of sales in 2008 to 38.4%
of sales in the equivalent period this year.
Despite this tight cost control the difficult underlying market conditions have
resulted in a reduction in profit before taxation to GBP563,000 (2008:
GBP647,000) and a decrease in earnings per share of 6.9% to 2.7p (2008: 2.9p).
The underlying tax rate reduced to 30.0% (2008: 34.0%) reflecting a
non-recurring increase in deferred tax resulting from the phased abolition of
capital allowances on industrial buildings in 2008.
Working capital and loan facilities
Cash flow from operating activities continued to be strong at GBP1.2 million and
in the present economic environment working capital control has been an
increased priority for the Group.
Net debt at the period end was GBP1.3 million compared to GBP1.8 million at the
end of 2008. The Group has total committed loan facilities of GBP3.8 million,
comprising a GBP1.1 million term loan, a GBP2.5 million debtor finance facility
and a GBP0.2 million overdraft.
Dividends
The Board is maintaining the level of the interim dividend at 0.53p per share
(2008: 0.53p per share), reflecting the continued profitability, strong cash
flow and confidence in the Group's long-term prospects.
Strategy and prospects
The Group is continuing to seek suitable acquisition opportunities, but only
where these meet stringent criteria in respect of location, team structure,
underlying culture, potential repair volumes and acquisition cost.
The underlying economic conditions and volatility of the market present
significant challenges for the Group and these are expected to continue for the
remainder of 2009. However, with a strong balance sheet and established
management structure the Board believe that Just Car Clinics is well placed to
respond.
+------------------------------------------+------------------------------------------+
| David Hickey | |
| Chairman | |
+------------------------------------------+------------------------------------------+
14 September 2009
Group Statement of Comprehensive Income
+-------------------------------------------------+------------+------------+------------+
| |
+-------------------------------------------------+
| | 6 months | 6 months | 12 months |
| | to | to | to |
| | 30.06.2009 | 30.06.2008 |31.12.2008 |
| | GBP'000 | GBP'000 | GBP'000 |
| | Unaudited | Unaudited | Audited |
+-------------------------------------------------+------------+------------+------------+
| Revenue from sales - continuing activities | 21,598 | 21,199 | 42,617 |
+-------------------------------------------------+------------+------------+------------+
| Cost of sales | (12,706) | (12,237) | (24,854) |
+-------------------------------------------------+------------+------------+------------+
| Gross profit | 8,892 | 8,962 | 17,763 |
+-------------------------------------------------+------------+------------+------------+
| Operating expenses | (8,301) | (8,285) | (16,397) |
+-------------------------------------------------+------------+------------+------------+
| Total operating profit - continuing activities | 591 | 677 | 1,366 |
+-------------------------------------------------+------------+------------+------------+
| Finance revenue | - | 12 | 20 |
+-------------------------------------------------+------------+------------+------------+
| Finance costs | (28) | (42) | (79) |
+-------------------------------------------------+------------+------------+------------+
| Profit before taxation | 563 | 647 | 1,307 |
+-------------------------------------------------+------------+------------+------------+
| Taxation (note 2) | (169) | (220) | (447) |
+-------------------------------------------------+------------+------------+------------+
| Profit for the period - attributable to equity | 394 | 427 | 860 |
| holders of parent | | | |
+-------------------------------------------------+------------+------------+------------+
| Other comprehensive income: | | | |
+-------------------------------------------------+------------+------------+------------+
| Income tax on share based payments | - | - | (18) |
+-------------------------------------------------+------------+------------+------------+
| Gain/(loss) on interest rate hedge | 22 | 24 | (60) |
+-------------------------------------------------+------------+------------+------------+
| Income tax on interest rate hedge | (6) | - | 26 |
+-------------------------------------------------+------------+------------+------------+
| Other comprehensive income for the period net | 16 | 24 | (52) |
| of tax | | | |
+-------------------------------------------------+------------+------------+------------+
| Total comprehensive income - attributable to | 410 | 451 | 808 |
| equity holders of parent | | | |
+-------------------------------------------------+------------+------------+------------+
| | | | |
+-------------------------------------------------+------------+------------+------------+
| Earnings per share (note 3) | | | |
+-------------------------------------------------+------------+------------+------------+
| Basic earnings per share | 2.7p | 2.9p | 5.9p |
+-------------------------------------------------+------------+------------+------------+
| Diluted earnings per share | 2.7p | 2.9p | 5.9p |
+-------------------------------------------------+------------+------------+------------+
Group balance sheet
+----------------------------------------------------+------------+------------+------------+
| |
+----------------------------------------------------+
| | At | At | At |
| | 30.06.2009 | 30.06.2008 | 31.12.2008 |
| | GBP'000 | GBP'000 | GBP'000 |
| | Unaudited | Unaudited | Audited |
+----------------------------------------------------+------------+------------+------------+
| ASSETS | | | |
+----------------------------------------------------+------------+------------+------------+
| Non current assets | | | |
+----------------------------------------------------+------------+------------+------------+
| Property, plant and equipment | 2,277 | 2,411 | 2,367 |
+----------------------------------------------------+------------+------------+------------+
| Intangible assets | 2,058 | 2,039 | 2,060 |
+----------------------------------------------------+------------+------------+------------+
| | 4,335 | 4,450 | 4,427 |
+----------------------------------------------------+------------+------------+------------+
| Current assets | | | |
+----------------------------------------------------+------------+------------+------------+
| Inventories | 592 | 625 | 544 |
+----------------------------------------------------+------------+------------+------------+
| Trade and other receivables | 5,558 | 4,893 | 6,645 |
+----------------------------------------------------+------------+------------+------------+
| Cash and cash equivalents | 4 | 328 | 3 |
+----------------------------------------------------+------------+------------+------------+
| | 6,154 | 5,846 | 7,192 |
+----------------------------------------------------+------------+------------+------------+
| TOTAL ASSETS | 10,489 | 10,296 | 11,619 |
+----------------------------------------------------+------------+------------+------------+
| LIABILITIES | | | |
+----------------------------------------------------+------------+------------+------------+
| Current liabilities | | | |
+----------------------------------------------------+------------+------------+------------+
| Trade and other payables | (4,707) | (4,700) | (5,406) |
+----------------------------------------------------+------------+------------+------------+
| Financial liabilities | (599) | (400) | (927) |
+----------------------------------------------------+------------+------------+------------+
| Derivative financial instruments | (70) | (8) | (92) |
+----------------------------------------------------+------------+------------+------------+
| Corporation tax liability | (210) | (292) | (361) |
+----------------------------------------------------+------------+------------+------------+
| | (5,586) | (5,400) | (6,786) |
+----------------------------------------------------+------------+------------+------------+
| Non-current liabilities | | | |
+----------------------------------------------------+------------+------------+------------+
| Financial liabilities | (700) | (1,100) | (900) |
+----------------------------------------------------+------------+------------+------------+
| Corporation tax liability | - | (220) | - |
+----------------------------------------------------+------------+------------+------------+
| Deferred tax liability | (213) | (130) | (207) |
+----------------------------------------------------+------------+------------+------------+
| | (913) | (1,450) | (1,107) |
+----------------------------------------------------+------------+------------+------------+
| TOTAL LIABILITIES | (6,499) | (6,850) | (7,893) |
+----------------------------------------------------+------------+------------+------------+
| TOTAL NET ASSETS | 3,990 | 3,446 | 3,726 |
+----------------------------------------------------+------------+------------+------------+
| CAPITAL AND RESERVES | | | |
+----------------------------------------------------+------------+------------+------------+
| Issued equity share capital | 146 | 146 | 146 |
+----------------------------------------------------+------------+------------+------------+
| Share premium account | 345 | 342 | 344 |
+----------------------------------------------------+------------+------------+------------+
| Retained earnings | 3,549 | 2,966 | 3,302 |
+----------------------------------------------------+------------+------------+------------+
| Other reserves | (50) | (8) | (66) |
+----------------------------------------------------+------------+------------+------------+
| TOTAL EQUITY | 3,990 | 3,446 | 3,726 |
+----------------------------------------------------+------------+------------+------------+
Group Statement of Cash Flows
+--------------+------------+------------+------------+
| | 6 | 6 | 12 |
| | months | months | months |
| | to | to | to |
| | 30.06.2009 | 30.06.2008 | 31.12.2008 |
| | GBP'000 | GBP'000 | GBP'000 |
| | Unaudited | Unaudited | Audited |
+--------------+------------+------------+------------+
| Operating | | | |
| activities | | | |
+--------------+------------+------------+------------+
| Profit | 394 | 427 | 860 |
| after | | | |
| taxation | | | |
| for the | | | |
| period | | | |
+--------------+------------+------------+------------+
| Adjustments | | | |
| to arrive | | | |
| at | | | |
| operating | | | |
| cash flow: | | | |
+--------------+------------+------------+------------+
| Income | 169 | 220 | 447 |
| tax | | | |
+--------------+------------+------------+------------+
| Net | 28 | 30 | 59 |
| finance | | | |
| costs | | | |
+--------------+------------+------------+------------+
| Depreciation | 278 | 240 | 513 |
| and | | | |
| amortisation | | | |
+--------------+------------+------------+------------+
| Gain | - | (5) | (5) |
| on | | | |
| sale | | | |
| of | | | |
| property, | | | |
| plant and | | | |
| equipment | | | |
+--------------+------------+------------+------------+
| Expense | 5 | 10 | 8 |
| arising | | | |
| from | | | |
| share | | | |
| based | | | |
| payments | | | |
+--------------+------------+------------+------------+
| Changes | (48) | 57 | 160 |
| in | | | |
| inventories | | | |
+--------------+------------+------------+------------+
| Changes | 1,087 | 33 | (1,719) |
| in | | | |
| trade | | | |
| and | | | |
| other | | | |
| receivables | | | |
+--------------+------------+------------+------------+
| Changes | (681) | 182 | 921 |
| in | | | |
| trade | | | |
| and | | | |
| other | | | |
| payables | | | |
+--------------+------------+------------+------------+
| Cash | 1,232 | 1,194 | 1,244 |
| generated | | | |
| from | | | |
| operations | | | |
+--------------+------------+------------+------------+
| Income | (320) | - | (293) |
| tax | | | |
| paid | | | |
+--------------+------------+------------+------------+
| Net | 912 | 1,194 | 951 |
| cash flow | | | |
| from | | | |
| operating | | | |
| activities | | | |
+--------------+------------+------------+------------+
| Investing | | | |
| activities | | | |
+--------------+------------+------------+------------+
| Sale | 1 | 6 | 6 |
| of | | | |
| property, | | | |
| plant and | | | |
| equipment | | | |
+--------------+------------+------------+------------+
| Payments | (186) | (262) | (463) |
| to | | | |
| acquire | | | |
| property, | | | |
| plant and | | | |
| equipment | | | |
+--------------+------------+------------+------------+
| Payments | (1) | (2) | (8) |
| to | | | |
| acquire | | | |
| computer | | | |
| software | | | |
+--------------+------------+------------+------------+
| Payments | - | (289) | (354) |
| to | | | |
| acquire | | | |
| businesses | | | |
+--------------+------------+------------+------------+
| Net | (186) | (547) | (819) |
| cash flow | | | |
| from | | | |
| investing | | | |
| activities | | | |
+--------------+------------+------------+------------+
| Financing | | | |
| activities | | | |
+--------------+------------+------------+------------+
| Interest | (46) | (45) | (115) |
| paid | | | |
+--------------+------------+------------+------------+
| Interest | - | 12 | 20 |
| received | | | |
+--------------+------------+------------+------------+
| Proceeds | 1 | - | 2 |
| from | | | |
| shares | | | |
| issued | | | |
| on | | | |
| exercise | | | |
| of | | | |
| options | | | |
+--------------+------------+------------+------------+
| Repayments | (200) | (200) | (400) |
| of | | | |
| borrowings | | | |
+--------------+------------+------------+------------+
| Dividend | (152) | (146) | (223) |
| paid to | | | |
| equity | | | |
| holders | | | |
| of | | | |
| Parent | | | |
| Company | | | |
+--------------+------------+------------+------------+
| Net | (397) | (379) | (716) |
| cash flow | | | |
| from | | | |
| financing | | | |
| activities | | | |
+--------------+------------+------------+------------+
| Change | 329 | 268 | (584) |
| in | | | |
| cash | | | |
| and | | | |
| cash | | | |
| equivalents | | | |
+--------------+------------+------------+------------+
| Cash | (524) | 60 | 60 |
| and | | | |
| cash | | | |
| equivalents | | | |
| at | | | |
| beginning | | | |
| of period | | | |
+--------------+------------+------------+------------+
| Cash | (195) | 328 | (524) |
| and | | | |
| cash | | | |
| equivalents | | | |
| at end of | | | |
| period | | | |
+--------------+------------+------------+------------+
+--------------------------------------------------+------------+-----------+------+--+--+
| Reconciliation to net debt (comprising borrowings less cash and cash |
| equivalents) |
+----------------------------------------------------------------------------------+
| Net debt at beginning of period | (1,824) | (1,640) | (1,640) |
+--------------------------------------------------+------------+-----------+------------+
| Change in cash and cash equivalents | 329 | 268 | (584) |
+--------------------------------------------------+------------+-----------+------------+
| Changes in bank loans during period | 200 | 200 | 400 |
+--------------------------------------------------+------------+-----------+------------+
| Net debt at end of period | (1,295) | (1,172) | (1,824) |
+--------------------------------------------------+------------+-----------+------+--+--+
Group Statement of Changes in Equity
+----------------------------+-----------+-----------+-----------+-----------+-----------+
| |
+----------------------------+
| | Issued | Share | Other | Retained | Total |
| | share | premium | reserves | earnings | equity |
| | capital | GBP'000 | GBP'000 | GBP'000 | GBP'000 |
| | GBP'000 | Unaudited | Unaudited | Unaudited | Unaudited |
| | Unaudited | | | | |
+----------------------------+-----------+-----------+-----------+-----------+-----------+
| At 1 January 2008 | 146 | 342 | (32) | 2,675 | 3,131 |
+----------------------------+-----------+-----------+-----------+-----------+-----------+
| Total comprehensive income | - | - | 24 | 427 | 451 |
+----------------------------+-----------+-----------+-----------+-----------+-----------+
| Share based payments | - | - | - | 10 | 10 |
+----------------------------+-----------+-----------+-----------+-----------+-----------+
| Equity dividends paid | - | - | - | (146) | (146) |
+----------------------------+-----------+-----------+-----------+-----------+-----------+
| At 30 June 2008 | 146 | 342 | (8) | 2,966 | 3,446 |
+----------------------------+-----------+-----------+-----------+-----------+-----------+
| At 1 January 2009 | 146 | 344 | (66) | 3,302 | 3,726 |
+----------------------------+-----------+-----------+-----------+-----------+-----------+
| Total comprehensive income | - | - | 16 | 394 | 410 |
+----------------------------+-----------+-----------+-----------+-----------+-----------+
| Exercise of share options | - | 1 | - | - | 1 |
+----------------------------+-----------+-----------+-----------+-----------+-----------+
| Share based payments | - | - | - | 5 | 5 |
+----------------------------+-----------+-----------+-----------+-----------+-----------+
| Equity dividends paid | - | - | - | (152) | (152) |
+----------------------------+-----------+-----------+-----------+-----------+-----------+
| At 30 June 2009 | 146 | 345 | (50) | 3,549 | 3,990 |
+----------------------------+-----------+-----------+-----------+-----------+-----------+
Notes to the interim report
1.Basis of preparation.The interim report has been prepared on the basis of
International Financial Reporting Standards ("IFRS") in accordance with
accounting policies set out in the Annual Report for the year ended 31 December
2008.
The financial information set out in this interim report does not constitute
statutory accounts within the meaning of Section 435 of the Companies Act 2006.
The interim report was approved by the Board of Directors on 14 September 2009
and is unaudited.
The financial information for the year ended 31 December 2008 is extracted from
the statutory accounts for that period. A copy of the full accounts for that
period, on which the auditors have issued an unqualified report, has been
delivered to the Registrar of Companies.
2.Taxation.The taxation charge for the six months ended 30 June 2009 has been
estimated based on the anticipated effective rate of 30% for the year ending 31
December 2009.
3.Earnings per share ("EPS"). EPS have been calculated on the result after
taxation and on the weighted average number of shares in issue being 14,592,959
(30 June 2008: 14,569,066; 31 December 2008: 14,574,085).
In calculating diluted EPS, the weighted average number of shares has been
adjusted for the diluting effect of share options giving a diluted number of
shares of 14,669,779 (30 June 2008: 14,723,579; 31 December 2008: 14,674,559).
4.Dividend.An interim dividend of 0.53p per share (2008: 0.53p) will be paid
on 23 October 2009 to shareholders on the register on 25 September 2009. The
shares will be marked ex dividend on 23 September 2009.
5.Interim report.Copies of this interim report will be posted to shareholders
on 25 September 2009 and will be available from the registered office of the
Company at Rawcliffe Road, Goole, East Yorkshire DN14 6XL.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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