Companies: JCR ��

Collision repair chain Just Car Clinics (recommended here as a buy at 35p a year ago) motored in with record sales and profits for calendar 2006, and has embarked on an acquisitive second phase of growth.

From a 12% rise in turnover last year to �27.8m, pre-tax profits (before goodwill) motored 30% higher to �869,000, driving earnings 21% north to 4.6p. Like-for-like turnover growth was healthy at 9%, with 2% of the rise reflecting price increases. Gross margins grew from 42.6% to 43.1% with operating margins creeping north to 3.2% (3%), and Just Car Clinics (JCC) also pleased with a �1.1m reduction in debt thanks to strong operating cash flow of �2m (�1.2m).

Chief executive Barry Whittles said the strategy of cementing relationships with major insurers such as RBS Insurance, Norwich Union and Zurich continues to help JCC – the second largest independent chain with a mere 0.5% of a �5.4bn overall market – build its volumes.

Furthermore, after four years of entirely organic growth on AIM since listing in early 2003, JCC has entered a new, acquisitive growth phase. During the final quarter, JCC acquired three sites for cash and opened another organically. A further site was acquired in February in Durham, taking the total number of repair centres to 18. ‘We are now looking for 25 sites over the next 18 months,’ added Whittles, who will also consider ‘greenfield’ openings at the urging of insurer clients and envisages an eventual 40 sites for JCC ‘by 2010 or 2012’.

JCC has already racked up four years of strong organic growth, intends to up the pace of acquisitions and expects to begin paying dividends within the next 12 months. We believe the shares offer an interesting consolidation and growth story. Buy.

Just Car Clinics Group	AIM	�9.41m	69.50p	4.00p
Click here for interactive charting
Other company articles:
Just Car Clinics			05/03/2007
Just Car Clinics			07/03/2006
Just Car Clinics			12/09/2005