TIDMJCR
RNS Number : 5998S
Just Car Clinics Group PLC
14 September 2010
+--------------------------------+---------------------------------+
| For immediate release | 14 September 2010 |
+--------------------------------+---------------------------------+
Interim Results
Just Car Clinics Group plc ("Just Car Clinics" or "the Group"), the UK's second
largest independent collision repair chain employing approximately 650 team
members and carrying out nearly 50,000 collision repairs per annum to cars,
commercial vehicles and motorcycles, today announces its interim results for the
six months ended 30 June 2010.
Highlights:
* Revenue up 17% to GBP25.3 million (2009: GBP21.6 million) with a like for
like increase of 10%
* Profit before taxation increased by 8% to GBP608,000 (2009: GBP563,000)
* EPS increased by 11% to 3.0p (2009: 2.7p)
* Strong operating cash flow of GBP644,000 (2009: GBP1,232,000)
* Interim dividend increased by 32% to 0.70p per share (2009: 0.53p)
Commenting on the results, Barry Whittles, Chief Executive of Just Car Clinics,
said:
"I am very pleased with the Group's performance during the six months to 30 June
2010. We have increased both revenues and profits and started to expand the
retail offering to our customer base. The strength of both our management team
and the Group's financial position mean that we are well placed to make further
progress"
+-------------------------------------+------------------------+
| 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 2010
Introduction
It is pleasing to announce the continued progress of Just Car Clinics during the
first six months of 2010 with a 10% increase in like for like revenue and a 11%
increase in earnings.
Trading highlights
+----------------------------+------------+------------+
| | 6 months | 6 months |
| | to | to |
+----------------------------+------------+------------+
| | 30.06.10 | 30.06.09 |
+----------------------------+------------+------------+
| Revenue (GBP'000) | 25,252 | 21,598 |
+----------------------------+------------+------------+
| Gross margin | 39.7% | 41.2% |
+----------------------------+------------+------------+
| Profit before taxation | 608 | 563 |
| (GBP'000) | | |
+----------------------------+------------+------------+
| Basic earnings per share | 3.0p | 2.7p |
+----------------------------+------------+------------+
| Operating cash flow | 644 | 1,232 |
| (GBP'000) | | |
+----------------------------+------------+------------+
| Interim dividend per share | 0.70p | 0.53p |
+----------------------------+------------+------------+
Results
Revenue for the six months ended 30 June 2010 increased by 17% to GBP25.3
million (2009: GBP21.6 million) including contributions from acquisitions. On a
like for like basis, after adjusting for the impact of acquisitions, revenue
increased by 10%.
Repair volumes benefitted from the snow and ice experienced during the early
months of the year. Such rapid increases in volumes, coupled with transport
difficulties for both customers and employees, inevitably presented challenges
and, in order to minimise the impact to customer service, the Group reacted
proactively by offering extended opening hours. Whilst increasing capacity these
actions also resulted in increased costs and a small reduction in gross margins
to 39.7% (2009: 41.2%) during the period.
As set out in the 2009 Annual Report, in addition to a continued focus on
relationships with existing corporate clients and high levels of customer
service, the Group is extending the range of services offered to customers. Just
Car Clinics now offers tyre replacement at all locations, vehicle maintenance at
the majority of sites and is currently piloting a mobile accident repair
offering, to enable customers to have minor repairs carried out at their own
home. Whilst not changing the fundamental nature of the business, these
initiatives will extend the Just Car Clinics brand and increase the average
profitability per vehicle.
The flexibility of the Just Car Clinics team and the ability to align resources
and capacity to match changes in demand is central to both the delivery of
customer service and the control of costs. As a consequence of this flexibility,
coupled with a focus on cost and efficiency, operating costs as a percentage of
sales have reduced to 37.3% (2009: 38.4%) during the period.
During the period the overall profitability of the Group improved with an 8%
increase in profit before taxation to GBP608,000 (2009: GBP563,000) and an 11%
increase in earnings per share to 3.0p (2009: 2.7p).
The underlying tax rate was largely unchanged at 29% (2009: 30%).
Working capital and loan facilities
Cash flow from operating activities continued to be strong at GBP644,000 (2009:
GBP1,232,000), although the increased revenue and timing of receipts around the
period end resulted in an increase in working capital of GBP303,000 during the
period. Consequently, net debt remained at approximately GBP1.3 million. The
Group has total committed loan facilities of GBP3.2 million, comprising a GBP0.5
million term loan, a GBP2.5 million debtor finance facility and a GBP0.2 million
overdraft.
Dividends
Last year the Board maintained the level of interim dividend to reflect the
prevailing economic uncertainty at that time, since then the Group has improved
profitability and maintained a strong underlying cash flow and as a result the
interim dividend for 2010 has been increased to 0.70p (2009: 0.53p) to reflect
that progress and the Board's confidence in the Group's long-term prospects.
Strategy and prospects
The Group's strategy continues to be one of expansion, both organically and by
expanding the customer offering at existing locations, and by acquisition where
stringent criteria are achieved. During the last year, we have expanded our
network of sites through three acquisitions and a number of potential
opportunities are currently being assessed.
The Board believe that Just Car Clinics, with a strong balance sheet and
experienced management team, is in a good position to make further progress.
+------------------------------------+------------------------------------+
| David HickeyChairman | |
+------------------------------------+------------------------------------+
14 September 2010
Group income statement
+------------------------------------------+------------+------------+------------+
| | 6 | 6 | 12 |
| | months | months | months |
| | to | to | to |
| | 30.06.2010 | 30.06.2009 | |
| | GBP'000 | GBP'000 |31.12.2009 |
| | Unaudited | Unaudited | |
| | | | GBP'000 |
| | | | |
| | | | Audited |
+------------------------------------------+------------+------------+------------+
| Revenue | 25,252 | 21,598 | 42,858 |
+------------------------------------------+------------+------------+------------+
| Cost of sales | (15,221) | (12,706) | (25,275) |
+------------------------------------------+------------+------------+------------+
| Gross profit | 10,031 | 8,892 | 17,583 |
+------------------------------------------+------------+------------+------------+
| Operating expenses | (9,408) | (8,301) | (16,376) |
+------------------------------------------+------------+------------+------------+
| Total operating profit | 623 | 591 | 1,207 |
+------------------------------------------+------------+------------+------------+
| Finance costs | (15) | (28) | (54) |
+------------------------------------------+------------+------------+------------+
| Profit before taxation | 608 | 563 | 1,153 |
+------------------------------------------+------------+------------+------------+
| Taxation (note 2) | (176) | (169) | (342) |
+------------------------------------------+------------+------------+------------+
| Profit for the period - attributable to | 432 | 394 | 811 |
| equity holders of parent | | | |
+------------------------------------------+------------+------------+------------+
| | | | |
+------------------------------------------+------------+------------+------------+
| Earnings per share (note 3) | | | |
+------------------------------------------+------------+------------+------------+
| Basic earnings per share | 3.0p | 2.7p | 5.6p |
+------------------------------------------+------------+------------+------------+
| Diluted earnings per share | 2.9p | 2.7p | 5.5p |
+------------------------------------------+------------+------------+------------+
Group statement of comprehensive income
+------------------------------------------+--------------------------+--------------------------+------------------------+
| Profit for the period | 432 | 394 | 811 |
+------------------------------------------+--------------------------+--------------------------+------------------------+
| | | | |
+------------------------------------------+--------------------------+--------------------------+------------------------+
| Gain on interest rate hedge | 15 | 22 | 42 |
+------------------------------------------+--------------------------+--------------------------+------------------------+
| Income tax on interest rate hedge | (4) | (6) | (12) |
+------------------------------------------+--------------------------+--------------------------+------------------------+
| Other comprehensive income for the | 11 | 16 | 30 |
| period | | | |
+------------------------------------------+--------------------------+--------------------------+------------------------+
| Total comprehensive income - | 443 | 410 | 841 |
| attributable to equity holders of parent | | | |
+------------------------------------------+--------------------------+--------------------------+------------------------+
| | | | |
+------------------------------------------+--------------------------+--------------------------+------------------------+
The results derive entirely from the continuing operations of the Group.
Group balance sheet
+--------------------------------------------+--------------------------+------------------------+------------+
| | At | At | At |
| | 30.06.2010 | 30.06.2009 | 31.12.2009 |
| | GBP'000 | GBP'000 | GBP'000 |
| | Unaudited | Unaudited | Audited |
+--------------------------------------------+--------------------------+------------------------+------------+
| ASSETS | | | |
+--------------------------------------------+--------------------------+------------------------+------------+
| Non current assets | | | |
+--------------------------------------------+--------------------------+------------------------+------------+
| Property, plant and equipment | 2,376 | 2,277 | 2,305 |
+--------------------------------------------+--------------------------+------------------------+------------+
| Intangible assets | 2,078 | 2,058 | 2,081 |
+--------------------------------------------+--------------------------+------------------------+------------+
| | 4,454 | 4,335 | 4,386 |
+--------------------------------------------+--------------------------+------------------------+------------+
| Current assets | | | |
+--------------------------------------------+--------------------------+------------------------+------------+
| Inventories | 659 | 592 | 686 |
+--------------------------------------------+--------------------------+------------------------+------------+
| Trade and other receivables | 6,658 | 5,558 | 5,897 |
+--------------------------------------------+--------------------------+------------------------+------------+
| Cash and cash equivalents | 5 | 4 | 4 |
+--------------------------------------------+--------------------------+------------------------+------------+
| | 7,322 | 6,154 | 6,587 |
+--------------------------------------------+--------------------------+------------------------+------------+
| TOTAL ASSETS | 11,776 | 10,489 | 10,973 |
+--------------------------------------------+--------------------------+------------------------+------------+
| LIABILITIES | | | |
+--------------------------------------------+--------------------------+------------------------+------------+
| Current liabilities | | | |
+--------------------------------------------+--------------------------+------------------------+------------+
| Trade and other payables | (5,282) | (4,707) | (4,875) |
+--------------------------------------------+--------------------------+------------------------+------------+
| Financial liabilities | (1,052) | (599) | (779) |
+--------------------------------------------+--------------------------+------------------------+------------+
| Derivative financial instruments | (35) | (70) | (50) |
+--------------------------------------------+--------------------------+------------------------+------------+
| Corporation tax liability | (226) | (210) | (178) |
+--------------------------------------------+--------------------------+------------------------+------------+
| | (6,595) | (5,586) | (5,882) |
+--------------------------------------------+--------------------------+------------------------+------------+
| Non-current liabilities | | | |
+--------------------------------------------+--------------------------+------------------------+------------+
| Financial liabilities | (300) | (700) | (500) |
+--------------------------------------------+--------------------------+------------------------+------------+
| Deferred tax liability | (247) | (213) | (243) |
+--------------------------------------------+--------------------------+------------------------+------------+
| | (547) | (913) | (743) |
+--------------------------------------------+--------------------------+------------------------+------------+
| TOTAL LIABILITIES | (7,142) | (6,499) | (6,625) |
+--------------------------------------------+--------------------------+------------------------+------------+
| TOTAL NET ASSETS | 4,634 | 3,990 | 4,348 |
+--------------------------------------------+--------------------------+------------------------+------------+
| CAPITAL AND RESERVES | | | |
+--------------------------------------------+--------------------------+------------------------+------------+
| Issued equity share capital | 146 | 146 | 146 |
+--------------------------------------------+--------------------------+------------------------+------------+
| Share premium account | 345 | 345 | 345 |
+--------------------------------------------+--------------------------+------------------------+------------+
| Retained earnings | 4,168 | 3,549 | 3,893 |
+--------------------------------------------+--------------------------+------------------------+------------+
| Hedge reserve | (25) | (50) | (36) |
+--------------------------------------------+--------------------------+------------------------+------------+
| TOTAL EQUITY | 4,634 | 3,990 | 4,348 |
+--------------------------------------------+--------------------------+------------------------+------------+
Group Statement of Cash Flows
+--------------+-----------------------+-----------------------+--------------------------+
| | 6 | 6 | 12 |
| | months | months | months |
| | to | to | to |
| | 30.06.2010 | 30.06.2009 | 31.12.2009 |
| | GBP'000 | GBP'000 | GBP'000 |
| | Unaudited | Unaudited | Audited |
+--------------+-----------------------+-----------------------+--------------------------+
| Operating | | | |
| activities | | | |
+--------------+-----------------------+-----------------------+--------------------------+
| Profit | 432 | 394 | 811 |
| after | | | |
| taxation | | | |
| for the | | | |
| period | | | |
+--------------+-----------------------+-----------------------+--------------------------+
| Adjustments | | | |
| to arrive | | | |
| at | | | |
| operating | | | |
| cash flow: | | | |
+--------------+-----------------------+-----------------------+--------------------------+
| Income | 176 | 169 | 342 |
| tax | | | |
| expense | | | |
+--------------+-----------------------+-----------------------+--------------------------+
| Finance | 15 | 28 | 54 |
| costs | | | |
+--------------+-----------------------+-----------------------+--------------------------+
| Depreciation | 325 | 278 | 570 |
| and | | | |
| amortisation | | | |
+--------------+-----------------------+-----------------------+--------------------------+
| Gain | (2) | - | (7) |
| on | | | |
| sale | | | |
| of | | | |
| property, | | | |
| plant and | | | |
| equipment | | | |
+--------------+-----------------------+-----------------------+--------------------------+
| Expense | 1 | 5 | 9 |
| arising | | | |
| from | | | |
| share | | | |
| based | | | |
| payments | | | |
+--------------+-----------------------+-----------------------+--------------------------+
| Changes | 35 | (48) | (119) |
| in | | | |
| inventories | | | |
+--------------+-----------------------+-----------------------+--------------------------+
| Changes | (761) | 1,087 | 748 |
| in | | | |
| trade | | | |
| and | | | |
| other | | | |
| receivables | | | |
+--------------+-----------------------+-----------------------+--------------------------+
| Changes | 423 | (681) | (511) |
| in | | | |
| trade | | | |
| and | | | |
| other | | | |
| payables | | | |
+--------------+-----------------------+-----------------------+--------------------------+
| Cash | 644 | 1,232 | 1,897 |
| generated | | | |
| from | | | |
| operations | | | |
+--------------+-----------------------+-----------------------+--------------------------+
| Income | (128) | (320) | (502) |
| tax | | | |
| paid | | | |
+--------------+-----------------------+-----------------------+--------------------------+
| Net | 516 | 912 | 1,395 |
| cash | | | |
| flow | | | |
| from | | | |
| operating | | | |
| activities | | | |
+--------------+-----------------------+-----------------------+--------------------------+
| Investing | | | |
| activities | | | |
+--------------+-----------------------+-----------------------+--------------------------+
| Sale | 6 | 1 | 15 |
| of | | | |
| property, | | | |
| plant and | | | |
| equipment | | | |
+--------------+-----------------------+-----------------------+--------------------------+
| Payments | (372) | (186) | (447) |
| to | | | |
| acquire | | | |
| property, | | | |
| plant and | | | |
| equipment | | | |
+--------------+-----------------------+-----------------------+--------------------------+
| Payments | | (1) | (8) |
| to | - | | |
| acquire | | | |
| computer | | | |
| software | | | |
+--------------+-----------------------+-----------------------+--------------------------+
| Payments | (33) | | (90) |
| to | | - | |
| acquire | | | |
| businesses | | | |
+--------------+-----------------------+-----------------------+--------------------------+
| Net | (399) | (186) | (530) |
| cash | | | |
| flow | | | |
| from | | | |
| investing | | | |
| activities | | | |
+--------------+-----------------------+-----------------------+--------------------------+
| Financing | | | |
| activities | | | |
+--------------+-----------------------+-----------------------+--------------------------+
| Interest | (31) | (46) | (89) |
| paid | | | |
+--------------+-----------------------+-----------------------+--------------------------+
| Proceeds | | 1 | 1 |
| from | - | | |
| shares | | | |
| issued | | | |
| on | | | |
| exercise | | | |
| of | | | |
| options | | | |
+--------------+-----------------------+-----------------------+--------------------------+
| Repayments | (200) | (200) | (400) |
| of | | | |
| borrowings | | | |
+--------------+-----------------------+-----------------------+--------------------------+
| Dividend | (158) | (152) | (228) |
| paid to | | | |
| equity | | | |
| holders | | | |
| of | | | |
| Parent | | | |
| Company | | | |
+--------------+-----------------------+-----------------------+--------------------------+
| Net | (389) | (397) | (716) |
| cash | | | |
| flow | | | |
| from | | | |
| financing | | | |
| activities | | | |
+--------------+-----------------------+-----------------------+--------------------------+
| Change | (272) | 329 | 149 |
| in | | | |
| cash | | | |
| and | | | |
| cash | | | |
| equivalents | | | |
+--------------+-----------------------+-----------------------+--------------------------+
| Cash | (375) | (524) | (524) |
| and | | | |
| cash | | | |
| equivalents | | | |
| at | | | |
| beginning | | | |
| of period | | | |
+--------------+-----------------------+-----------------------+--------------------------+
| Cash | (647) | (195) | (375) |
| and | | | |
| cash | | | |
| equivalents | | | |
| at end of | | | |
| period | | | |
+--------------+-----------------------+-----------------------+--------------------------+
+------------------------------------------+-----------+----------+--------+--+----------+
| Reconciliation to net debt (comprising borrowings less cash and cash | |
| equivalents) | |
+--------------------------------------------------------------------------+-------------+
| Net debt at beginning of period | (1,275) | (1,824) | (1,824) |
+------------------------------------------+-----------+----------+----------------------+
| Change in cash and cash equivalents | (272) | 329 | 149 |
+------------------------------------------+-----------+----------+----------------------+
| Changes in bank loans during period | 200 | 200 | 400 |
+------------------------------------------+-----------+----------+----------------------+
| Net debt at end of period | (1,347) | (1,295) | (1,275) | |
+------------------------------------------+-----------+----------+-----------+----------+
| | | | | | |
+------------------------------------------+-----------+----------+--------+--+----------+
Group Statement of Changes in Equity
+-----------------------+-----------+-----------+------------------------+-----------+-----------+
| | | | | | |
| | Issued | Share | Hedge | Retained | Total |
| | share | premium | reserve | earnings | equity |
| | capital | GBP'000 | GBP'000 | GBP'000 | |
| | GBP'000 | Unaudited | Unaudited | Unaudited | GBP'000 |
| | Unaudited | | | | Unaudited |
+-----------------------+-----------+-----------+------------------------+-----------+-----------+
| At 1 January 2009 | 146 | 344 | (66) | 3,302 | 3,726 |
+-----------------------+-----------+-----------+------------------------+-----------+-----------+
| Total comprehensive | - | - | 16 | 394 | 410 |
| income | | | | | |
+-----------------------+-----------+-----------+------------------------+-----------+-----------+
| Exercise of share | - | 1 | | - | 1 |
| options | | | - | | |
+-----------------------+-----------+-----------+------------------------+-----------+-----------+
| Share based payments | - | - | | 5 | 5 |
| | | | - | | |
+-----------------------+-----------+-----------+------------------------+-----------+-----------+
| Equity dividends paid | - | - | | (152) | (152) |
| | | | - | | |
+-----------------------+-----------+-----------+------------------------+-----------+-----------+
| At 30 June 2009 | 146 | 345 | (50) | 3,549 | 3,990 |
+-----------------------+-----------+-----------+------------------------+-----------+-----------+
| At 1 January 2010 | 146 | 345 | (36) | 3,893 | 4,348 |
+-----------------------+-----------+-----------+------------------------+-----------+-----------+
| Total comprehensive | - | - | 11 | 432 | 443 |
| income | | | | | |
+-----------------------+-----------+-----------+------------------------+-----------+-----------+
| Share based payments | - | - | | 1 | 1 |
| | | | - | | |
+-----------------------+-----------+-----------+------------------------+-----------+-----------+
| Equity dividends paid | - | - | | (158) | (158) |
| | | | - | | |
+-----------------------+-----------+-----------+------------------------+-----------+-----------+
| At 30 June 2010 | 146 | 345 | (25) | 4,168 | 4,634 |
+-----------------------+-----------+-----------+------------------------+-----------+-----------+
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
2009.
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 2010
and is unaudited.
The financial information for the year ended 31 December 2009 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 2010 has
been estimated based on the anticipated effective rate of 29% for the year
ending 31 December 2010.
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 14,610,816
(30 June 2009: 14,592,959; 31 December 2009: 14,603,069).
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 14,688,484 (30 June 2009: 14,669,779; 31 December 2009: 14,681,104).
4. Dividend. An interim dividend of 0.70p per share (2009: 0.53p) will be paid
on 22 October 2010 to shareholders on the register on 24 September 2010. The
shares will be marked ex dividend on 22 September 2010.
5. Interim report. Copies of this interim report will be posted to
shareholders on 28 September 2010 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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