Accident Exchange (Epic Code ACE) is a provider of replacement vehicles to motorists involved in accidents where they are not at fault. It specialises in the high margin prestige end of the market, and appears to be gaining market share in a growing marketplace.

Key Points are:

Full-year results show the company is growing
rapidly, albeit from a small base. Sales rose fivefold
during the year to 4.1m, and pre-tax profits registered
a near six-fold increase to 1.14m.

The current financial year has got off to a very good
start, with activity levels exceeding management
expectations by a significant margin.

Net debt at the year-end of 3.9m, giving a gearing
figure of 212% relates almost entirely to spending on
new vehicles so is asset backed. We expect gearing to
be down to 161% at end-April 2005 and to 107% at
end-April 2006.

Almost two-thirds of the companys business is with
companys that subscribe to the ABI GTA terms of
agreement, reducing the overall risk profile.

On the key financial metrics of fleet utilisation, gross margin
and ROC, Accident Exchange ranks at or near the best of its
peer group. On a PER of 9 times for the current y/e April 2005
falling to under 7 times 2006 earnings, based on conservative
estimates, the company looks attractively priced in comparison
to its peer group.

The current financial year has got off to a very good
start with excellent activity levels. Fleet numbers are
up to 330 vehicles, against our y/e April 2005
forecast of 385, the annualised run rate on sales is
currently 10m, and the annualised run rate on pretax
profit is 3m.

This company clearly has a very promising future
ahead of it.

Website:
http://www.accidentexchange.com/

Reseach Notes:
http://www.accidentexchange.com/research/EdisonOutlookNote-June04.pdf
http://www.accidentexchange.com/research/HardmanNote-June04.pdf

Why ?

Nice trade capa.

Cheers Dil , yes, turned out well but at the time I thought I may have been a bit premature.

capa

Flicking through newspapers this a.m at the local newsagent, noticed Independent mentioned ACE with a "worth a punt" comment at the end.

capa

Would expect some positive comment tomorrow in the I.C after results last week.

Hardmans have updated the company website and have a revised eps of 8.8p for year end and 18.8p for the next, a p/e of less than 12 for this growth is amazingly cheap imo

capa

I'm still with you capa , have these been tipped again over the weekend ?

Don't think so Dil although Shares mag mentioned results in a positive light last week.

Good start to the week.

capa

Ta.

Click on this, select the latest Numis report, and prepare to purr ;o)


http://www.accidentexchange.com/randa.asp

Currently one of my biggest holdings for 2005

Juzzle, thanks. Numis reckoning on there being 30% upside, this could prove conservative if an upbeat trading statement is released.

capa

Happy xmas capa , off we go again.

Thanks Dil, and a merry xmas to you also.

capa

Have these been tipped somewhere ?

capa

This weeks shares mag has these as a buy with a single digit p/e for 2007 as being probable. Wonder if this explains the rise today.

capa

Nah. These were already on track to rise strongly into the new year, even without any new tips. My biggest holding. Made me a nice 4-figure gain today alone ;o)

Now up 8-fold in 8 months, since arriving on the market in April. Ongoing growth is widely considered sustainable.



PS: Just look how long it took to get
from 50p to 100p (5 weeks),
then to 150p (4 weeks),
to 200p (9 weeks),
to 250p (4 weeks).

(Note: Charts prior to April 2004 do not relate to this company which floated 19 April)

Still time to grab some in the morning ahead of likely update in the new year.
AIM-listed. Nms 1000, but the 4 MMs mostly quoting 5000 lots.


PPS: Shareshark - any chance of a chart or two in the header post please?

Nice xmas capa ?

Yes thanks Dil, yourself?

Good start to the week here I see

capa

My thanks go to SCSW for this one.

At what price did you get in at Dil ?

capa

111 point something originally.

Last time was at 173p