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.

Up 2p again and blazing away. Still plenty of time to climb aboard.
gf.

Thanks for the reply Goldfinger.The postings by you more experienced guys/girls are a great help to us new people. Graeme.

As Ive always said this company has a fantastic management and staff. Up now around 78% in the last 5 days but MORE to come. Results the 15th. Heres a recent article from the company showing its commitment to customer service.


3/9/2003
Great customer satisfaction record for Just Car Clinics
Just Car Clinics has pushed customer satisfaction to new levels in its first six months of business.

Of the 16,000 individual collision repairs carried out during this period, more than 99.9 per cent of repairs were carried out to the customer’s complete satisfaction straight away. However, all repairs were successfully resolved as a result of the excellent follow-up care and attention to detail shown by the Just Car Clinics team.

This impressive record bodes well for the company, which was formed earlier this year following a management buy-out of Dixon Motor’s collision repair centre chain.

Chief Executive Barry Whittles commented: “From day one customer service has been a priority for us and I think our record over the last six months highlights that. Whilst we are the second largest collision repair centre chain in the country, we are a new company and it is easy for people to forget that. However, I am confident on the basis of these figures that we are getting things right and we can build on these early successes as the company continues to grow and develop.”

A high volume of positive feedback from customers and insurance companies backs up Barry’s view that Just Car Clinics has made excellent progress in its first six months of business.

A recent letter from Fortis Insurance Limited, which was passed on to Just Car Clinics at the request of a satisfied customer, highlights the team’s ‘compassion’ and goes on to say: “The ability shown with such a difficult and uncommon repair was commendable.”


gf.

note Im in for the long term.

am i too late guys!!!?

well, this one has really taken off...

well done .. was thinking of buying a few weeks back..

luck all...

Nobodys too late on this one. Check the very low p/e and then look at how good the management are. Im adding again in the morning and this is one hell of a play, perhaphs no were near GXN, b ut its still a good one BUY.
gf

It's great to get all this feedback on JCR and GXN - 2 questions: anyone have a view on TGN? and secondly, will there be any problem selling JCR given that there's a limit of buying stock of around 5,000 shares? Am holding 40,000 and am thinking of getting more tomorrow.........

Have easily purchased yesterday a much greater volume than 5,000 shares in JCR. Perhaps your stock broker has a limit with the MM's on the size of transaction if you can only buy at this Qty. JCR is down today though probably because of FTSE's sentiments over yesterdays Wall St performance.

there are / were buying limits in place on this stock, at least there were yesterday....I managed to buy two lots of 12,000 at open but paid a 1p premium for the privalege, bought in at 35 when offer price was 34, wasnt to worried as managed to sell out again when it topped at mid way thru the day.....mm were / are controlling the market on this one. As for todays drop.....my whole portfolia is a sea of red but hey, tommorrow is another day!

There is a really good head and shoulders forming on this stock if you have a profit take it.Several years in the trade tells me that no one ever got rich repairing car bodies.Beleave me Dicksons would have been releived to get rid of their bodyshop side of the business.

ps.autumn and winter are the best time for body repair shops but if we have a mild winter it can be one of the worst.Also because cars have become cheaper more and more cars are righten off after an accident as uneconomical repairs so body shops dip out on cars that would have normally been repaired when car values were higher.

Well its good new for holders then because I can tell you that the London weather Centre are predicting a terrible winter.

Expect upbeat results on monday, the company must be very confident when a very small cap like this calls an analysts meeting.

gf.

What's happening with JCR?
Good results but a big dip - am holding a lot of shares - why the drop?

Cautious statement in my view. They say July and August have been worse than envisaged (which is not going to boost the share price). The company does rely mainly on the winter months, however.

I have sold for now simply because I don't see a lot of progress in the near term.

Hi Bones
Appreciate your response - think I'll sit on them as my break even is 31.5p - you can tell I'm new to all this! Also, as I have a lot of them ie 65,000, am concerned that I'll get screwed at launching that amount for sale - so my strategy (ho-ho) is to sell a little at a time when the price goes up - any opinion as to when that might be?
Thanks
Anna

Anna, that's a lot of shares! I got a poor price unloading a lot less today. Fortunately I had slipped a few out last week at 37p but clearly not enough!

There's only 2 market makers so any burst of buying or selling will cause exaggerated movements in price. The share should do well over the next year provided business is well-managed through the winter. I don't have the desire to hang on until March 2004 to find out.......

Good luck
Bones

Thanks again
Anna

Just Car Clinics given thumbs up by influential industry body 15/09/2003

An influential motor trade body has awarded all 13 branches in the Just Car Clinics collision repair chain a ‘good’ or ‘excellent’ rating following a recent inspection.

The MVRA Ltd is a leading authority within the industry and carries out over 5,000 quality assessments each year at more than 2,000 different collision repair centres the length and breadth of the country. To retain their membership, companies must adhere to a strict code of conduct in every aspect of their work, from customer service to promoting fair competition and business practices. All work must be completed to the very highest standard, whilst pricing structures and policies must be fair and emphasis placed on Health and Safety, and environmental practices.

Just Car Clinics, which has branches across the Yorkshire, Lincolnshire and Nottinghamshire region, was formed earlier this year following a management-led buy out of collision repair centres owned by the Dixon Motors Group. The company’s management team embarked on a continuous improvement programme at all 13 centres during their time as part of the Dixon Motors group and have been eagerly awaiting the results as evidence of how their efforts have paid off.

This week the team learnt that the Bradford, Doncaster, Grimsby, Lincoln, Mansfield, Scunthorpe, Sheffield (Woodbourn Road) and Wakefield branches were classed as ‘excellent’, whilst Hull, Leeds, Sheffield (Sutherland Street) and York all achieved ‘good’ ratings.

None of the branches were ranked in the lower MVRA inspection categories – ‘acceptable’ and ‘review membership’. The results are particularly encouraging given that Just Car Clinics is a new company and the management team have committed to a further three-year improvement plan with the MVRA to ensure that standards and quality remain high.

Chief Executive, Barry Whittles, commented: “To receive such a great set of results at this early stage in the company’s development is a massive boost for the whole team. We know that we are moving in the right direction and can now build on this early success and further enhance the level of service that we provide to our customers.

“I think it is largely due to the fact that, although we are a new company, we have a vastly experienced and committed team of people here. The results put all our branches among the very best performers in the country, which can only be good news for our customers, both insurance, members public ands fleet drivers. ENDS.

gf

Not much going on here either way.

GF.

Hi Goldfinger - just following you around - SPOOKY