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.

Excellent, welcome aboard a class act.

cheers GF.

OK 002 bed time lol lol

Business thriving for Bike Clinic
Sheffields Just Bike Clinic, part of the 13 branch strong Just Car Clinic chain, has topped off a fantastic first year of trading by securing a number of high profile contracts.

Business really has been booming for the dedicated motorbike collision repair centre and its workload increased by more than 15 per cent during the 2003/04 financial year. The company has secured contracts from a number of high-profile names in the insurance industry to substantially increase its share of the market.

Manager Paul Bennett explained: We are still a new company and we started out here as a small team. I am delighted with the way our first year has gone and we may need to recruit more staff soon to meet the growing demand for what is a very specialist service.

Just Bike Clinic is a one-stop repair centre and guides its customers through every stage of the repair process, from the initial collection of bikes following a collision, to liasing with insurance companies and parts suppliers to get the motorbike back to new and on the road as quickly as possible.

cheers GF.

Nice extracted piece here taken from a chappie who went to the AGM...........

Brewin Dolphin's latest research note (Hold at 22P) says that the board has taken legal advice and are pursuing a significant claim against the vendor, likely to be in excess of 1m. I asked about this at the AGM and the claim is being pursued under the warranties and indemnities provisions of the Acquisition Agreement. The board indicated that they were happy with the progress being made with this claim and it certainly has not been written off. I was concerned that any payment would be swallowed up by lawyers' charges and that they might consider phoning Fred Goodwin (Boss man of RBS, who own Dixon Motors, who sold their Car Clinics to Bikenet, who became Just Car Clinics) direct to reach a "lawyer-free" settlement. That's what I would do in their shoes, but as they have to keep Dixon Motors, Direct Line and Churchill Insurance sweet (all owned by RBS) the board might find that a problematic course of action. We shall see.

Brewin Dolphin say this: "The Group currently trades on a multiple of 10.7x our 2004E earnings against the insurance and motor retail sectors both on between 10x and 12x 04 earnings. Our DCF model implies a share price of 30p assuming only modest growth in earnings through to 2010 and nil growth thereafter."

cheers GF.

Good post on Motley fool not from me:

" So to me this half of the story is bad news and the business looks very vulnerable .Other half seems better but high risk"



http://boards.fool.co.uk/Message.asp?mid=8626603

Another piece taken from a chap at the AGM...............................

The members of the Board were very courteous. Every question was answered with no side-stepping or obfuscation. Of course, when it came to "forward looking" information they could not tell me anything that was not already in the public domain - it didn't stop me trying though!

After the AGM was over, Barry Whittles, the MD, showed me around the York operation and introduced me to some of the key personnel. What impressed me most was the professionalism of everything and everyone I saw. This is a class operation, of that have no doubt. Training and staff development are being given a very high priority, with plans for a new training centre already well-developed. They are happy with their computer systems, which appear to work well. They link, wherever possible, with the insurance companies' own systems and it all seems very slick. For example, a computer-based estimating system is used and the estimate, together with digital photographs of the car damage, can be transmitted to the insurer and a decision to go-ahead or not given very quickly. For cases where an insurance company inspector needs to look at the vehicle, a quiet area separate from the workshop is made available where they do their admin work, use their laptops and so on. The workshop itself was much larger than an average bodyshop. It was busy. I am no expert on bodyshop equipment but it all looked to be well maintained and the paintshop facilities looked superb. The reception staff were friendly and helpful and the customers that I saw seemed to be very happy with the service.ENDS.

cheers Gf.

So a seperate quiet place just for insurance to see the vehicle...not a very productive way of utilising floor space & transfering into earnings is my concern, seems an expensive luxury, no wonder margins are so wafer thin.


Just checked MoneyAM's report of net current assets (m)... the figure? .... -0.531

Brewin Dolphin say this: "The Group currently trades on a multiple of 10.7x our 2004E earnings against the insurance and motor retail sectors both on between 10x and 12x 04 earnings. Our DCF model implies a share price of 30p assuming only modest growth in earnings through to 2010 and nil growth thereafter."

cheers GF.

Do they say when they expect the net current assets to become a positive figure rather than the negative one of -0.531? Is that 2010 or beyond? Have they conviently missed that out & the high gearing or have you just selected your text?

Brewin Dolphin say this: "The Group currently trades on a multiple of 10.7x our 2004E earnings against the insurance and motor retail sectors both on between 10x and 12x 04 earnings. Our DCF model implies a share price of 30p assuming only modest growth in earnings through to 2010 and nil growth thereafter."

cheers GF.

Do they say when they expect the net current assets to become a positive figure rather than the negative one of -0.531?

Building a nice support base at 17p bounceing off several times. Highlighted this week on the FAR3 breakouts as one to watch out for. 30p looks fair value short term followed by further rises subject to successful settlement.

Sorry disagree. Papers today warn of much higher interest rates, these will hit JCR hard with their high borrowings.

If they lose any legal battle with their gearing, they will be in serious trouble.

Profitable, sub 2.5 million market cap, Brewin's forecasts extremely modest and good to see coverage from a broker like them for such a small company indicates JCR worth taking seriously indeed. Strong cashflow, unused bank facility of 2.5 million and expanding number of centres. Miserable summer will have aided business too as an added bonus and any settlement can only help!

Given all those plus points for a company with such a small market cap we can live with higher interest rates. You tried to talk this one down when the fraud was uncovered with scaremongering about more to come that was proved to be merely that - scaremongering - now you are trying interest rates.

Very cheap at these levels, moving off support again.

The last dregs of JCR bears fast running out of excuses. And final resistance being flushed out, very little selling pressure left now.

added this morning hawick.

cheers GF

WELL WORTH GETTING IN FOR A QUICK PROFIT. This as a very high beta and should really take off over the next couple of days, but please keep a close eye on it.

Just Car Clinics Group PLC
22 October 2004




FOR IMMEDIATE RELEASE 22 October 2004


Just Car Clinics Group plc
Settlement of warranty claim


Just Car Clinics Group plc ('the Group') announced today that a settlement of
the warranty claim against Dixon Motor Holdings Limited ('Dixon') has been
agreed.

Under the settlement, Dixon has agreed to reduce the deferred consideration
payable by 680,000 and to pay a contribution towards costs. Dixon will also
reimburse interest paid, calculated on the total settlement from the date of the
acquisition in January 2003.

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

'I am very pleased that a speedy and amicable agreement has been reached with
Dixon which I believe represents a fair resolution of our claim and I look
forward to continuing the mutually beneficial trading relationships between the
parties'.

For further information, please contact:

Just Car Clinics:
Barry Whittles, Chief Executive 07850 268 369
Chris Elton, Finance Director 07702 298 344
Buchanan Communications:
Tim Thompson 020 7466 5000






This information is provided by RNS
The company news service from the London Stock Exchange


cheers GF.

Up just under 20% on the day and more to come I feel.

cheers GF.

The maths behind the RNS announced friday.......................

Deferred consideration stood at 1955,000 at half year, so a 35% reduction is more than welcome.
That will remove the bank overdraft. So 680,000 at 8% is 55,000 pa (830,000 at 8%, see below, would be 65,000) in interest saved. Based on this, I think the "refund" of interest will be somewhere in the region of 100,000 and lets say a contribution of 60% to investigation costs, that's another 50,000.

So in summary, P&L has improved by 150,000 this year with an ongoing improvement of 55,000 to 65,000 and the Debt is reduced by 830,000 in total, assuming all the Dixons money is used to pay off debt.

On a P/E of 8 that's worth another 1.2m on "Enterprise Value" ie 400,000 for interest saving and 800,000 for debt reduction.

cheers GF.

Goldfinger - I note your point is a repeat of one on another BB. Pity you didn't read the following posts re:incorrect interest rate assumption.

Ramper are we?

Not at all, both posters agreed that the final outcome was the same.

cheers GF.