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

At what price did you get in at Dil ?

capa

111 point something originally.

Last time was at 173p

No wonder you are thanking SCSW Dil

Your last buy was just about the time of my first then, I first monitored them at about 1.20 but kept on waiting for retracements that never came !

capa

They recommended it at about 68p but it jumped to about 76p before you could buy in on the Monday , August time I think.

I too kept waiting for the pullback but in the end realised it wasn't coming , shame they don't all turn out like this.

Another fine day. Made more from ACE this month than from everything else added together all year.

What a brilliant day :-)

ACE, NRG, TOU and TOA all came up trumps with a little help from AZM and NLR

capa

capa-wot, no MOB?

oscar - yes no MOB, good stock to have though imo.

capa

I keep waiting for a pullback on this to get in!
been waiting since 235!!
should have had it months ago....

know what you mean 016622, the only pullback of any merit was when the sp dropped from about 1.90 to circa 1.65, that was when I bought in after tracking from the 1.20's.

I have added a few more times the last at 2.25 when it dropped intra day, I would have added more since but it hasn't seemed to pause for breath.

have a look at all claims solutions (acs) as they have the potential to do an ACE and they are picking up after recent director buys. ACE still good value though imo.

capa

there is the ideal time to buy. Hope you haven't missed it 016622

capa

timing capa!...thanks...now they may resume the northward route!
Will have a look at acs
cheers for now.

didn't have to wait too long then, to get into profit 016622 !

acs retracing nicely providing good entry point imo.

capa

will keep an eye on acs capa...
I'll return the favour and point you at hils (hill & smith)
looking good short term,
cheers

performance true to form...bought at the top

wasn't that long ago when we were complaining about there being no buying opportunities. gift horses and mouths springs to mind.

think of the growth and the lowly future p/e this is trading at

capa

This is a good company, wait for the bounce! I agree it's a buying opp.-I'm in NRG and losing at the moment but they'll come back, I hope.

agreed Moneyplus, NRG is a little known gem, I thought there was only me and Bigbobjoylove interested in them. Should pick up the closer we get to results at the end of the month imo.

capa

thanks for the reassurance guys...