News blog
Just Car Clinics
- BY: Andrew Hore |
- POSTED: 04/03/2008 |
Just Car Clinics is beginning to see the benefits of its recent acquisitions.
The car crash repairer has acquired eight sites in the past two years taking the total to 21. The average purchase price has been £150,000 per site. The most recent was at Swindon, which is the furthest south that the company has ventured so far. Just has focused on the north of England and the Midlands.
The Swindon purchase didn’t affect the 2007 results which showed a one-third increase in turnover to £36.8m. Four-fifths of turnover is generated from major insurers. Just is trying to diversify its customer base by striking relationships with brokers. Although acquisitions contributed to profits their margins aren’t as good as the more mature sites. It takes around 18 months for them to reach margins similar to the other sites.
Profits jumped from £869,000 to £1.19m. Net debt is £1.64m. There was a maiden final dividend of 1p a share taking the total for the year to 1.5p.
So far Just has acquired single sites but it is looking at potential deals with regional motor dealers which might want to exit the crash repairs business to focus on their core operations. Buying a cluster of sites would enable Just to move into a new region. Just is already the second biggest company in the sector but its market share is less than 1%.
Daniel Stewart forecasts 2008 profits of £1.3m and earnings per share of 6.2p. The shares rose 4p to 74p, putting them on 12 times forecast earnings.
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