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

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

Company founded in 2001 Seadog and came to the market last year

capa

capa,
Thanks for the info, my charts seem to go back to 95 with little on no activty from 97 until 2001/2 SD

Looks like a breakout, plenty of upside here imo.

Capa

Pretty impressive contract announcements this morning, looking good for new highs.

capa

Seadog I think you are mixing this one up with the Accident Group which was a no win no fee insurance/legal set up a la shames direct. I believe (but could be wrong) that they went bust some time ago. Perhaps they recycled the ticker?

bonfield
could well be the case, they look like they took over the vacant Epic.

Accident Group did go bust Bonfield but nothing to do with this outfit, the only thing busting here will be their coffers :-)

100% growth on future multiple of less than 15 I reckon, plenty more to come here in my opinion.

I have been holding and adding for about 10 months now and the story just gets better.

capa

I understand the Telegraph have rated them as a buy today hence the steep mark-up.

Numis have upped their target price to 4.00, expect other upgrades to follow.

capa

Anyone else noticed that cracker of a trading statement today ?

Looking for a good run up to results now.

capa