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.

The only thing holding this back (apart from being off the radar of larger investors due to its tiny market cap) is the need for the company to pay off 5m debt (some over 4 years). 3m is a bank facility and 2m scheduled payments until 2008. Cash flow should do it so long as profit performance is managed (and the management appear to be on the ball and familiar with the business). It certainly seems a focussed business and I am strangely comforted by the fact the business is concentrated in the Yorks/Lincs area (even though I am a Southerner)!

Pre-tax profits may have been 1m+ under Dixon Motors' ownership but interest on the loans will reduce that considerably unless business grows quickly. Even so, I think this is one severely undervalued entity. I have put a few in my SIPP.

Just Car Clinics Group PLC
01 September 2003



FOR IMMEDIATE RELEASE 1 September 2003

JUST CAR CLINICS GROUP PLC

On behalf of our client, Just Car Clinics Group plc, we notify the London Stock
Exchange that the Company will be announcing its second Interim Results for the
nine month period ended 30 June 2003, which will include the first six months
trading for the newly acquired business, on Monday, 15 September 2003.


There will be an analyst briefing at 10.30 am on Monday, 15 September 2003 at
Buchanan Communications, 107 Cheapside, London EC2 followed by a press briefing
at 11.30 am.



For further information please contact:


Tim Thompson/Bobbie Swanson

Buchanan Communications Ltd Tel: 020 7466 5000

The fact that this announcement alone has caused a tick up shows how off-radar this has been!

Now up 48% in 3 days (to 26.25p) and not a smattering of interest from this board. Still, there is a few buyers and it's so tightly held you can hear the MMs squeaking :)

Looking at the chart I may wait till early next week..was very tempted on Monday to get aboard,but hung back for the same reason....thinking she would run out of steam or there would be profit taking.I am not usually a fan of penny shares or AIM stocks but its not a case of if...but when.Certainly think the debts can, and will be serviced, and think this one is one to tuck away.
Great thread by GF and heartiest congratulations.

WS many thanks for that. Results on the 15th and no share will rise 15 days on the trot, but I think we may see it down early in the morning presenting a buying opportunity.

From there on its just uphill to the results. They must be confident as they have called an analyst presentation on the 15th, and thats unusual for such a very small cap.

GF

Profit taking day to day guys, but watch these gems move in the morning.

Mid term target 53p.

GF.

FAIRLEY NEW TO ALL THIS ..JUST 4 WEEKS OLD.........SO FAR 2 GOOD ONES GXN AND LCI ( MAYBE GETTING TIRD SOON ?) ONE JUST WAITING TO STSRT GOING UP CHA AND ONE TOTALLY WRONG TIMMIMG TAL.

HAVE I SPOTED JUST CAR CLUBS TO LATE OR IS IT WORTH A 450 GAMBLE IF I CAN GET

ABOUT 27P OR LESS ON MONDAY.

ANY COMMENTS WILL MAKE UP MY RESERCH. I KNOW RESULTS ARE DUR LATTER THIS MONTH (JUST 2 WEEKS AND WOULD BE HAPPY WITH 10% + FOR A QUICK ONE OR = HOLD ON FOR A LONGER RETURN. I HAVE NEVER BEEN THIS CLOSE TO A RESULT AND A RISSING PRICE.

GRAEME

Still worth buying but wait to see if we have profit taking in the first few hours. Chart indicates 37p first stop followed by around 52p. Not many small companys like this call an analyst meeting on day of results so they must be pretty confident, GF.

Up 2p again and blazing away. Still plenty of time to climb aboard.
gf.

Thanks for the reply Goldfinger.The postings by you more experienced guys/girls are a great help to us new people. Graeme.

As Ive always said this company has a fantastic management and staff. Up now around 78% in the last 5 days but MORE to come. Results the 15th. Heres a recent article from the company showing its commitment to customer service.


3/9/2003
Great customer satisfaction record for Just Car Clinics
Just Car Clinics has pushed customer satisfaction to new levels in its first six months of business.

Of the 16,000 individual collision repairs carried out during this period, more than 99.9 per cent of repairs were carried out to the customer’s complete satisfaction straight away. However, all repairs were successfully resolved as a result of the excellent follow-up care and attention to detail shown by the Just Car Clinics team.

This impressive record bodes well for the company, which was formed earlier this year following a management buy-out of Dixon Motor’s collision repair centre chain.

Chief Executive Barry Whittles commented: “From day one customer service has been a priority for us and I think our record over the last six months highlights that. Whilst we are the second largest collision repair centre chain in the country, we are a new company and it is easy for people to forget that. However, I am confident on the basis of these figures that we are getting things right and we can build on these early successes as the company continues to grow and develop.”

A high volume of positive feedback from customers and insurance companies backs up Barry’s view that Just Car Clinics has made excellent progress in its first six months of business.

A recent letter from Fortis Insurance Limited, which was passed on to Just Car Clinics at the request of a satisfied customer, highlights the team’s ‘compassion’ and goes on to say: “The ability shown with such a difficult and uncommon repair was commendable.”


gf.

note Im in for the long term.

am i too late guys!!!?

well, this one has really taken off...

well done .. was thinking of buying a few weeks back..

luck all...

Nobodys too late on this one. Check the very low p/e and then look at how good the management are. Im adding again in the morning and this is one hell of a play, perhaphs no were near GXN, b ut its still a good one BUY.
gf

It's great to get all this feedback on JCR and GXN - 2 questions: anyone have a view on TGN? and secondly, will there be any problem selling JCR given that there's a limit of buying stock of around 5,000 shares? Am holding 40,000 and am thinking of getting more tomorrow.........

Have easily purchased yesterday a much greater volume than 5,000 shares in JCR. Perhaps your stock broker has a limit with the MM's on the size of transaction if you can only buy at this Qty. JCR is down today though probably because of FTSE's sentiments over yesterdays Wall St performance.

there are / were buying limits in place on this stock, at least there were yesterday....I managed to buy two lots of 12,000 at open but paid a 1p premium for the privalege, bought in at 35 when offer price was 34, wasnt to worried as managed to sell out again when it topped at mid way thru the day.....mm were / are controlling the market on this one. As for todays drop.....my whole portfolia is a sea of red but hey, tommorrow is another day!

There is a really good head and shoulders forming on this stock if you have a profit take it.Several years in the trade tells me that no one ever got rich repairing car bodies.Beleave me Dicksons would have been releived to get rid of their bodyshop side of the business.

ps.autumn and winter are the best time for body repair shops but if we have a mild winter it can be one of the worst.Also because cars have become cheaper more and more cars are righten off after an accident as uneconomical repairs so body shops dip out on cars that would have normally been repaired when car values were higher.

Well its good new for holders then because I can tell you that the London weather Centre are predicting a terrible winter.

Expect upbeat results on monday, the company must be very confident when a very small cap like this calls an analysts meeting.

gf.