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

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...

Like 016622 I've come in at the top with this one and watched it fall. The graphs and the figures looked good. I hope the growth trend gets back on track soon before I get anywhere near my stop loss.
Does anyone know why this is drifting south?

Cheers

B2B

More drifting early this morning. Is this just a correction?

The herd has moved on, don't worry they'll be back on the next piece of good news. As with any good company it tends to drift back as the others bubble up so it pays not to panic as this is just what the mms want.

Many thanks moneyplus. If there is one thing I really like about this BB it is the mutual support and free flow of genuine opinions that are given here.
My investment in ACE was always going to be long term. So there is no panic yet.

Cheers

B2B

did you have a look at HILS Capa?

I know Hils of old 016622, but must admit to not having looked at for quite some time, so thanks for re-introducing me.

My initial thoughts are that the business certainly seems to have been turned around, the purchase of parts of the business of Lionweld Kennedy looks a steal to me (no pun intended).

Good defensive play, good growth and contracts, cash generative with reasonable dividend, chart also looks great. Not likely to get ramped to death either this one.

May have a dabble, can certainly see 1.60 being achievable by results.

cheers

capa

Just bought back into these today. The story still looks good.

Up 6% now.

Looks like you got in at an opportune time Chester.

I am still holding and good to see upward movement. Once these have the wind on their back they don't half shift.

All the best.

capa

Yes, I've held these before, when they get going they certainly motor.

I'm looking forward to that trading statement on the 21st mentioned in the RNS yesterday

capa

Good steady rise over the last few days, just like the old days :-)

capa

AGM today, along with promised trading statement.

capa

Whoops there it is.

Trading ahead of expectations, continued optimism.

Great stuff

capa

Good strong finish today, nearly at an all time high. lots to go here I feel, must be more broker upgrades to come

capa

capa,
Didnt these float at about 620 in july 95 and subsequently rise to 812.50 on 15/9/97. From that date there is very patchy declining record until 21/4/04 when they showed up at 32p and have risen since ???? SD