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.

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.

Added to my holding today @18.7p. These results are much better than expected, given the shenanigans of one bad egg. Unused facility of 2.5 million, good cashflow, profitable first three months of 2004 and quality management who handled the problem very well. Banking arrangements restructured successfully and any court award would be an added bonus. Of course after everything there will be challenges ahead but as i suggested nothing new came out and the investigation is history.

All this for a market cap of around 2.6 million, and 21 million turnover proves this is a quality business. Well worth buying.

Firmly back on the right road (no pun intended!).

Superb summing up hawick and the future now looks very bright indeed, stock up 26% one of the leaders of the day.

Added again myself this pm.

cheers GF.

Topped up my holding today on the strength of the results. Thanks for the summary hawick and input GF. For interest, Comdirect were not operating a 3000 shares online limit.

Been advised on another board its been tipped today by City Confidential as a Speculative BUY, and is also one of there shares for the year.

cheers GF.

Rising interest rates for the third time this year this week are going to make it even tougher for JCR to pay their debts which stretch to 2008 at the moment.

Profits were predicted throughout the net of 1m by the bulls on here, even without their problems no where near 1m would have been reached.


Treat with caution. very high gearing, walking a tightrope & highly speculative, especially if interest rates rise further, which looks odds-on with the US looking to raise rates soon.

Been advised on another board its been tipped today by City Confidential as a Speculative BUY, and is also one of there shares for the year.

cheers GF.

Feel a desperate need to repeat your post?

That is already post number 132 & now 134.


I wonder if the banks have charged new arrangement fees etc for JCR not being the business with the profits the banks thought when they loaned their money, I can't remember a bank doing anything for nothing, maybe the interims will show us.

May have even put them on a higher rate above base to reflect the higher risk.




Lets look at your orginal forecast to see how conservative you are:

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.



So a forecast of 1.4m, what did they make?

From City Confidential.............

last 15month results pleasing to the market,this year has started very well,insurance companies will choose established repair partners,the outlook is encouraging,pursuing a substanstial claim against vendors for problems before the business was aquired, pre-tax profit 125.000,basicly old hat to most of us,its now a buy again and quoted as share of the year by city confidential.

cheers GF.

When are the ONE penny options due to be excersised g/f?


Very poor show that options should be issued at 1p.

If they had issued at a fair price of 6 or 7p, then they wouldn't have given themselves cash on a plate & st the same time showed they cared about investors, by not diluting their shareholdings.

City Conf have tipped JCR before so I guess they have to stick with it, plus it has to fill space EVERY month.

Good news from City Confidential, they have an excellent track record and I am sure their followers will see this as a big green light, and no doubt others should take the hint as well. :)

I hold and looking to add on any weakness. Have been involved with these since 9p over a year ago and still positive on te shares.

LOL every one concentrating on City Conf.

OPTIONS @ 1p

MASSIVE DEBT in relation to NAV


INTEREST RATES UP THREE TIMES on that very debt


EUROPEAN LEGISLATION getting tougher for bodyshops.


INSURANCE COMPANIES clamping down on margins, companies like Aquillo formed to help.



Last margins I read were just over 3% at the interims.

I agree Hawick excelent that a pro and very good tip sheet as backed this one. Just spiffing.

cheers GF.

-2p or more than 10% as investors maybe realise the risks, perhaps too much concentration on positives with no balance of negatives?

Third Eye - I'd like to ask you a very blunt question that I would appreciate an honest answer to - why the personal agenda against GF? I hold a few stocks that have threads running which I like to keep abreast of. You describe yourself as someone who likes seasoned debate but whenever I read your name, 100% of your posts are there in a contrardictory response to something GF has posted and it's BORING. You ALWAYS disagree and that is far beyond coincidence.
Give it a rest.

jfletendre, please stick to the merits or negative comment on JCR.

It's in the firing line due to it's huge debt position, if I wish to be negative or positive I will....Other than that filter if you have no wish to read anyof my comments.