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.

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

Morning Linzi havent heard from you a while see you over on SC. Hows that ass wiggling going on?, must be the bike that keeps it fine tuned. Whoo, Im getting gooze bumps.
PS. Huddersfield is spelt with an H not a U.

PPS, have a look at Incite Holdings, could go a lot quicker than you on yer bike.

GF.

Back to top for long term holders.

GF.

GF -

Still holding JCR shares - 65,000 of them - so pretty gutted to see further drop - any reason that I've missed for this other than it being rated as a "seasonal" share - ie roll on the bad weather?

anyone still holding these? and if so, your views would be much appreciated

I don't hold.

JCR is just a little above my long term upward trending support line @ 20.6p (Tuesday). If it breaks down through that, the next support level is around 17.75p.

Good luck

Fly by Night

Red

Thanks Red, appreciate you getting back to me - will keep a close eye - Goldfinger seemed to think that JCR undervalued and will do OK with increased work in an anticipated bad winter so we'll see - thankfully am holding PDX, GXN, and INC too so it could be worse......

Looks very undervalued. Not too many profitable companies with this sort of turnover and a market cap under 3 million. One to tuck away.

Up to day.

gf.

JCR has done it's thing & tested the 17.75 support.
It's now hovering between that & the resistance line (It used to be a support line, crazy stuff this TA ;-), an upward trending line moving up towards 22p. So many got burned, (see the volume on 7 th October) that, undervalued or not, it may take some time to retake those heights!

It would be incorrect to say the indicators look positive but they certainly don't look as negative as before & IMO look "hopeful"!

Good luck

Fly by Night

Red

Is the JCR catchment area getting any nice horrid weather yet?

Does anyone know which insurance companies JCR is hoping to sign to.They may have approvals from varies companies,but there are a couple that make a real difference.(what ever the weather)I am awaiting on announcements before taking a dip in again.

Sadly this one has been ramped to 40p & it back where it should be.

The debt & interest rate rises have been overlooked.

How much do they owe, isn't it about 8.5m, add the interest rate rises momentum & that's why it's going nowhere in my opinion.


It would be very cheap if it didn't have the high gearing which could cripple it. A p/e isn't to be looked at on it's own ....always check the debt.