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

Agreement with DaimlerChrysler Retail Ltd

http://www.uk-wire.com/cgi-bin/articles/200407260700071921B.html

Another big step forward for ACE with more to come this year by the sound of it.

Dave

In today's FT:

Car group's successful run is no accident

By Malini Guha, Michael Neill and Philip Stafford

Published: August 3 2004 |

Shares in Accident Exchange, the replacement car group, have gained 15 per cent in the last week, after a positive reception to analysts meetings. The shares, flat yesterday at 61p, have run up 44 per cent in the last three weeks.

The rally has been helped by an agreement with DaimlerChrysler Retail for the
provision of accident management and business support services, such as IT-based
vehicle tracking, for Daimler's Mercedes Benz retail dealership operations within their Birmingham and Manchester areas.

Investors saw the deal as backing for its business model. It specialises in replacing prestige vehicles by providing car hire on credit to motorists involved in non-fault accidents.

The company has also been aided by problems at rival Bristol and London, where its previous adviser Rowan Dartington resigned, saying it had lost confidence in the current executive management. Bristol and London are in talks with alternative advisers.

In its second profit warning in four months in May, Bristol admitted new market entrants, like Accident Exchange, were having an impact. The news has left fund managers and analysts bullish about 2005 earnings. Accident said at the end of June that trading in the first two months of its new financial year had been significantly ahead of expectations.

Research group Hardman forecasts full-year sales will jump to 11.8m from 4.1m while adjusted pretax profit will rise to 3.8m from 1.1m.

Any reason for the latest 10% increase..?

shareshark
can you put a chart (3 year) in the header please
d.

keeping an eye on this today, I got in at 121, thought it could be the peak, but oh no. 70% up since last news, whats happening!?

Tipped in Shares mag page 6 today....hence the interest.

Ahh i see, its a very attractive chart if nothing else!

Cheap as chips , fill yer boots Dai :-)

So are they saying this is still cheap?

Yes I believe that is what they are saying.

Thats nice to know!

Dai , next stop 240p

ramp ramp ramp DYOR ask Sue Helen

:-)

Took profits this week, thanks for the nod Dil.
Dai :-)

Just bought some of these today, couldn't believe drop following that stellar trading update.

capa

Results next week, a little bit of buying today.

capa

Recommended a buy and added to their core growth portfolio in Investor for Growth newsletter out yesterday

If the Zulu man Jim Slaters team is buying then that will do for me.

capa

Seems to be quite a number following Slaters lead today on the run up to results.

capa

Breakout ! Above 2.00 this is going a lot higher imo

capa

Racing along now, is this a Zulu stock of the future ?

capa