This company is certainly catching the eye of Analysts and Tipsters. I have kindly borrowed this summing up of the company from an online associate and agree with his findings. This really is an undervalued company.

Car Clinic (JCR traded on AIM) – Market Cap 1.32million

Business

Company owns 12 accident centres. Was formerly a division of the Dixon Motor Group.

Opportunity

Profit of circa 700,000 at interim stage – Is a growing business, so every confidence that this performance will be matched in second half, generating 1.4million in cash profits for the group. As others have pointed out this would essentially put company on PE of 1.

Company does have debts, which will require servicing. Currently 2.25million, though repayment has been more than fairly structured and allows significant amounts of cash to be retained by JCR. I assume these monies will be used for bolt on acquisitions and possibly early repayment of debt.

From my various conversations with an existing large shareholder, and to a certain extent recent statements from the company, the debt will be repaid at the rate of 400k per annum. From my calculations, and conversations with various sources, net profits this year should be more than 600,000. Compare this to the measly 1.32million market cap. As I indicated above, this is ludicrously cheap. ( NB This figure takes into account costs of acquisition, associated legal fees, initial banking fees and initial repayments. Remember, the repayments begin in earnest, next year.)

Going forward however, annual profits of more than 1.4million can be expected from the group. I expect the company to beat this comfortably next year and to continue growing at pace. So in effect, I believe Just Care Clinic can deliver annual net profits of more than 1million – Remember this is net profit. (i.e. after repayment of debt)

Directors Buying

And why shouldn’t they? They obviously see the great potential here. The Finance Director, Chris Elton was formerly FD at Dixon Motors, but moved over to take part in the action.

The future

I expect the company will be more focussed on bringing in further contracts with insurance companies. When Just Car Clinic was part of the Dixon Motor Group, whilst profitability was obviously important, as the business wasn’t a core component of the larger group bringing in new contracts was likely seen as a problem rather than a chance to deliver greater profits. I suspect the management team, motivated by significant shareholdings, will be keen to bring in as much ‘big’ insurance business as they can. I expect the company to make an announcement to this regard within the next few months or so. This is based on nothing other than gut, experience and feedback from various sources involved in the industry.

Take a closer Look

Equitygrowth.net wrote a brief piece on JCR in its 7th February newsletter. Shares Magazine has also provided positive coverage of late. I do agree that the figures do appear too good to be true, that is why I encourage investors to do their own research. This stock is undervalued – FACT. I am confident these shares will do well in the coming weeks as more investors recognise the potential, whilst going forward this is excellent material in my opinion. This isn’t hype, this is all fact which can be confirmed with just a little time and effort. Shares are currently 10.5p offered. I cannot emphasise enough - JCR is one to have a look at.

Please DYOR.

Well I taken note of that Goldfinger, but I want to talk about JCR, you seem to want to divert attention.


I repeat high gearing upto 2008, gives no cushion for any hiccups, that was my foresight.....had they had sensible gearing, this affair wouldn't matter so much, but now there is a chance they could go bust.

Good call ThirdEye. It was your confirmation of the debt position that kept me out of this one. Phew!

Cheers.

Btw isn't your debt misleading ( you claim to be an accountant in your profile)in your opening post goldfinger?

Thanks Guitarist

I see my negative posts have been of use.

A measured reaction is required here. Third Eye's rather frantic reaction looks overly panicky to me.
Here are my thoughts:

This clearly was a pre-JCR/Bikenet problem.

However it IS disappointing, and there can be no denial of that, and it was not picked up during the changeover - someone should be answerable for that. The banks have clearly recognised that it is not the current management's fault, hence the seemingly amicable rearrangement of borrowings. That is comforting.

As i have always said one of the big strengths is the cashflow and that is why today's fall, while in part I accept, justified, is overdone and i reckon for the time being fair value is closer to 20p (market cap under 3 million - we must not forget at some stage when repayments are complete the company will have assets of 10 million or so), though sentiment quite naturally sees that it has plunged further short term.

And yes, as i have always said, if any company I hold has a 'major change' of circumstances - and they do not come much more major than this - I am always prepared to act and I have unwound part of my position today (despite all the rubbish talked about liquidity there were no problems, even on a bad day, unlike i have experienced on ofex for example at times). The rest is staying firmly put though.

However if the numbers as i fully expect have no other nasties, the investigation appears to be complete, the events are now historic (in the past) - crucial - and current trading, says the company, is fine, i anticipate after that I will buy back some of what I sold after results, but i want to be fully reassured first. I can see no reason why anything more should be uncovered, this has been properly and very fully investigated now and it is clear today's statement attempts to get all the sh*t out in a "oner" - probably the best way to handle things. Actually guitarist looks like Third Eye's post has cost you, up 40% from yesterday's low, hardly a dead cat! i first bought this at 9.75p.

Importantly, the company says it expects no 'material' other problems to be found, (if there was anything likely to be very minimal - zero and i mean ZERO, chance of this business failing) so although as with any loss it didn't show real performance, this impacted only 3 centres of 12 (now 14) further minimizing its real impact. Strong cashflow has clearly impressed the banks too. Remember the REAL value is somewhat hidden too here - ironically! When repayments are complete, they will have a nav of 10 million (current market cap 3 million). That is why long termers will be happy to ride this out and reap the rewards. Shown itself to be a tough little business nugget the way it has been able to take this on chin and come back fighting already.

However i would be surprised in this instance if more bargain hunters do not materialise before results and the chances are they will have made the right move. I am impressed by management's swift and full reaction to investigate.

My final comment is that it is disappointing of course, and the sort of thing that no amount of bulletin board discussion can reasonably foresee, otherwise every business in the world would suffer the same sort of speculation.

A

hawick, thankfully I had sold @ 28p as I felt at the time because of a previous weak trading statement there wouldn't be much upside if any at all untill just prior to next results and AFD was more tempting. Agree with your comments though and have it on my watch list as on next accounts the share price should begin to recover.

On the plus side for JCR, having read all the posts on other B&Bs including an excert from today's FT today, which finishes with

"But bold investors can occasionally make a killing on occasions like this. As a division of Dixons Motors, the company had turnover of 22m in 2002. The directors say the company was profitable in the first two months of the current year. But the market value at yesterday's close, was only 2m"

plus today's bounce, for now, I'm holding.

It would be great too to refrain from personal attacks and vendettas Third Eye -it appears to me that you only appear when you gleefully have ammunition to fire at GF - not interested in that - in fact, it's as a direct result of his input that I've made some pretty healthy profits - and it's not as if ANYONE (unless you had a crystal ball?) could predict a crooked accountant tarnishing the prospects of JCR...

Just goes to show how many crooked and cowboy accountants there are! Glad to see JCR have kicked them into touch and show this won't be tolerated! Personally I think the accountants should pay JCR compensation (Do they hold professional liability insurance?) in damages.

Well theres certainly a bounce back on. Now up 28%.

cheers GF.

ps, thanks jfletendre, for your insight on the poster Thirdeye, Im glad you can see through his motivations, and yes it is personal and shouldnt be conducted on this board. This site is above those kind of gutter practices.

JCR seem to have had their spike now, lets sum up:


Reducing margins....fact.
Very High gearing.....fact
Interest rate trend upwards....fact
Went to bank & borrowed on false figures....fact
Just had a mild winter.....fact.
Exceptional costs very likely.

Lifted from another board..........



egoi - 25 Mar'04 - 19:18 - 50 of 60


No worries. FT says BUY, ARM newsletter says BUY, two new Year tipsheets also said BUY.

So, Outsider/thirdeye whistles in the wind. I think he is confusing this one with Britannia which, i agree, is every day more and more a sell. He has no evidence of forthcoming bad news,(or he would state it), has almost certainly not talked to management since the disclosure (or ever) and I would not be surprised if he or his pal are shorting JCR, hence the bulls**t. Otherwise, I don't understand his miserable, jealous campaign (over a year now) against a company in which he has never owned a share - and a company that has time and again proved him badly wrong, yet he persists.
I am told he has been banned from UQ for vacuous sniping and given a final warning on an ADVFN competitor. And so sadly this weak character spends time talking virtually to himself on a site with hardly any members. Would you trust someone like that...............

Forget the personal attack above the issue is JCR:

shareholders should check:

Reducing margins....fact.
Very High gearing.....fact
Interest rate trend upwards....fact
Went to bank & borrowed on false figures....fact
Just had a mild winter.....fact.
Exceptional costs very likely.
Directors bought options at 1p.....fact
Will the debt be resheduled to longer than 2008....possibly.

all on UK-Wire RNS or MoneyAM.

Gentlemen,

Can we please keep away from discussing the merrits of other posters - albeit in this instance duplicated from a third party - on this board.

Please can we stick to discussion on the company be it either negative or positive.

Ian

Ten million assets, (once repaid debt - and that not too far away) yet market cap under 3 million, excellent buying bargain, trading profitably and won't be long now and these facts will be haunting shorters. Turnover 22 million.

FT says you might just make a killing here, Arm newsletter says BUY two tipsheets recently said BUY. When the results show no further meaningful nasties, the recovery could be explosive. There are likely to be tipsheet recommendations, broker upgrades and a rush of buyers. The brave will take advantage of the current cheap price ahead of results, others I anticipate will pile in after results and anyone with a short position will be forced to join in too by covering like mad.

Risk/reward very much on the side of investors now.

Mild winter?? I think not, lol!

January and February were profitable anyway and March started fine, said the company. Looks good to me.

?10m assets not too far away?


They need to announce a profit after the misleading figures first...even then debt is scheduled to 2008 on programmed payments, then there is the overdraft.....4 years at least....not too far away?

Nothing misleading my friend. I expect profits to rise more quickly as new centres grow and then those assets will be a reality, quite possibly ahead of schedule. Cracking little business this one.

Cracking numbers were presented to the bank too.


A lot of talk of expansion by yourself & golfinger, but I really don't understand how they would do it even before the misleading figures were presented to the bank.


I hear you sold some because of your concern?

JCR back on track after results today. If claim against Dixons is positive, this would just be the icing on the cake.

Just Car Clinics Group PLC
29 April 2004




FOR IMMEDIATE RELEASE 29 April 2004


Just Car Clinics Group plc

Preliminary Results

Just Car Clinics Group plc ('Just Car Clinics' or 'the Group'), the independent
collision repair chain with thirteen vehicle collision repair centres, today
announces it preliminary results for the fifteen months ended 31 December 2003*.
In January 2003, the Just Car Clinics business was acquired and the Group's
business changed from internet-based motorcycle retail to motor vehicle
collision damage repair. The overall reported results reflect a combination of
these activities. The results relating to the continuing activities, which are
shown separately, reflect the performance of the Just Car Clinics business for
the twelve months since its acquisition.

Financial highlights (continuing activities before exceptional costs):

• Turnover of 21,625,000

• Gross profit of 9,014,000

• Gross margin of 41.7%

• EBITDA of 914,000

• Profit before goodwill amortisation and taxation of 125,000

• Profit before taxation 6,000

• Underlying earnings per share of 0.7p

Commenting on the results, Barry Whittles, Chief Executive of Just Car Clinics,
said:

'2003 has been a year of change for the Group. Much has been achieved despite a
number of challenges which arose during the first year of the new business. The
discovery of the overstatement of historic results, announced in March, was a
set back for the Group; however the underlying issues at the three affected
sites have been addressed, and they each have improved margins and traded
profitably during the first quarter of 2004.

Trading for the Group for the first quarter of 2004 is in line with expectations
and the quality of our team, infrastructure and support functions means that
Just Car Clinics is in an excellent position to develop further mutually
beneficial relationships with our insurer partners.'
For further information, please contact:

Just Car Clinics:

Barry Whittles, Chief Executive 07850 268369

David Hickey, Chairman 07712 880902

Buchanan Communications:

Tim Thompson/Tom Carroll 020 7466 5000


* In January 2003 Just Car Clinics changed its year-end from 30 September to 31 December. The current
financial period has therefore been extended to fifteen months ending 31 December 2003.

CHAIRMAN'S AND CHIEF EXECUTIVE'S REPORT

OVERVIEW

2003 was a year of much change for the Group, during which a lot was achieved
despite a number of challenges during the first year of the new business.

In January 2003 the Group acquired the business and assets of Just Car Clinics
and as a result the Group's principal trading activity now comprises a chain of
thirteen motor vehicle collision repair centres. During the current period the
focus of the Group has therefore changed from internet-based retailing, under
the name of BikeNet, to collision damage repair.

The new business undertakes collision damage repairs to all makes of cars, vans
and motorcycles and has established successful trading relationships with most
of the UK's leading insurance companies. It is key to the future strategy that
the business continues to develop closer partnerships with insurance companies
and other work providers so as to provide an exceptional service to customers by
investment in technology and the training and development of the employee team.

The accounting reference period of the Company has been changed from 30
September to 31 December and, as a result, the current report covers the fifteen
months ended 31 December 2003. The ongoing collision repair business of the
Group is best reflected by the results relating to continuing activities, these
are in respect of the twelve month period following the acquisition in January
2003 and discussion of trading results in this report relates to this period.

TRADING RESULTS

Profits from continuing activities before exceptional costs, goodwill
amortisation and taxation for the period of 125,000 were disappointing, the
largest negative factor being the overstatement of historic results, referred to
below. This resulted in inefficiencies in the operation of the three sites
affected being masked by false reporting and therefore going uncorrected for a
period. These inefficiencies have resulted in gross margins at these sites
being significantly below the Group average.

The underlying market conditions were also difficult with exceptionally dry
spring and autumn periods resulting in a significant fall in accidents and
repair volumes across the sector. Major insurers reported decreases in
underlying claims of in excess of 20%.

Despite these adverse market conditions the Group's turnover at 21.6 million
was 1% higher than that achieved by the business in 2002. New insurance
approvals have been achieved at a number of sites during the period and turnover
growth at less mature sites in Lincoln, York and Bradford was in excess of 9%.
However, the underlying fall in the market resulted in the overall growth being
below expectations for the period.

After excluding the three sites affected by the reporting issue, the overall
gross margin was 42.7% which was in line with expectations; the three affected
sites reduced the overall margin to 41.7%.

OVERSTATEMENT OF HISTORIC RESULTS

As announced on 16 March 2004 the historic results of three of the Group's
thirteen trading locations were adversely affected by the deception of one of
its management accountants, who it was discovered, had been falsifying
management information for these locations during both 2003 and 2002 (in the
period before the business was acquired). The deceit was identified by the
Group's Finance Director and has been extensively investigated by the Group's
auditors, Ernst & Young LLP, in conjunction with management. Subsequently the
Board has reviewed its system of internal controls and increased the frequency
and extent of review and checking by the central management team.


These investigations have confirmed that the issue was limited to three
locations and have not identified any theft. The Group's bankers, Yorkshire
Bank plc, have confirmed their willingness to re-set the loan covenants breached
as a result of this deception and revised loan agreements are now in place.

The results reported for 2003 have been restated to correct for the falsified
accounting entries, the Auditors' Report is unqualified and the Board is
confident that they accurately reflect the performance of the Group.

Having taken legal advice the Group is pursuing a substantial claim against the
vendors of the business, Dixon Motor Holdings Limited, for breach of warranties
included in the business purchase agreement relating primarily to the accuracy
of the profit and loss account for 2002.

WORKING CAPITAL

The working capital of the Group has been well controlled and net borrowings
throughout the period have been below that estimated in the cash flow forecasts
produced at the time of the acquisition.

As a result of this tight control the Group has generated 0.6 million of cash
from operating activities and at the period end has an unutilised debtor finance
facility of 2.5 million.

ACHIEVEMENTS

The first year of operation since the acquisition of Just Car Clinics has seen
much activity as the new business has formalised its independence and
established human resource and payroll functions, IT systems and communications
infrastructure.

During the period Just Car Clinics has also established its own distinct brand
identity and team culture based on strong two-way internal communications and a
goal of exceptional customer service.

The quality of the team and facilities was recognised by the wider industry
during the period with the following national awards:

• Wakefield Just Car Clinic came top in AXA's annual assessment of more than
260 repair centres.

• Five of the team and the Leeds Just Car Clinic were nominated in the
finals of the annual Bodyshop Awards, with two eventual category winners.


cheers GF.

added again but could only get just over 3,000 shares online. Might try another broker.

cheers GF.