2CC - 2 Cheap Cars Group

[percy]

What's the final div going to be ? 8.5-9c per share?

I am expecting the divie will be between 4 and 6 cents,fully imputed.
EPS between 13 and 15 cents for the year.

[NZSilver]

thanks Percy, my calculation was a bit high looking at yours... I better re-check mine. Looking forward to reading results regardless!

[percy]

A Stunner.
FY24 results - Record profit and dividend declared
24/05/2024, 8:30 am, FLLYR
24 May 2024

Market announcement
NZX:2CC

FY24 results
Record profit and dividend declared

2 Cheap Cars Group Limited (NZX:2CC) has today reported a record $6.2m net profit after tax (NPAT) for the full year to 31 March 2024 (FY24), an increase of $4.9m over FY23.

Summary of key results
(Figures quoted are in NZ dollars. Comparisons are made against FY23.)

• Revenue and income: $86.8m, increased 5% .
• Gross margin: $20.3m up 39%.
• Vehicle sales: Down 2% to 8,169.
• Underlying EBITDA including finance income: $11.4m, up 105%.
• Net profit after tax (NPAT): $6.2m, up $4.9m.
• Underlying NPAT2: $6.2m, up 213%.
• Underlying earnings per share (EPS): 14 cents per share (cps) vs 4.4 cps.
• Final gross dividend: 5.78 cps.
• Total FY24 gross dividend: 11.56 cps vs 0 cps.

The Company achieved full year revenue and income of $86.8m, an increase of 5%, driven by higher prices and improved finance and insurance (F&I) penetration rates which have offset slightly lower volumes for the full year.

2CC’s gross margin expansion strategy has been extremely effective, strengthening 6% to 23% for the full year. This has been achieved through optimised pricing, effective promotional activity, improved finance and insurance penetration and the continued insourcing of compliance activities. The full year gross margin is up 39% to $20.3m.

Operating costs have risen marginally by 1% to $8.9m, significantly below the rate of inflation. Management continues to be strongly focused on both minimising cost increases and reducing reliance on third parties throughout the value chain.

The Company’s focus on gross margin and tight control of operating costs has seen underlying EBITDA including finance income increase 105% to $11.4m in FY24.

Underlying NPAT, excluding last year’s non-recurring costs, increased by 213% to a record $6.2m in FY24.

Interest costs, excluding those associated with leases, were down 52% on FY23, reflecting changes in finance facilities and prudent capital management.

Net operating cash inflow was $6.9, down $6.3m year on year, largely due to the strategic decision to maintain stronger inventory levels. The Company is well positioned with inventory valued at a healthy $13.9m, (up $5.5m over FY23 which was impacted by shipping constraints).

As at 31 March 2024, the Company is in compliance with all banking covenants and has cash of $4.7m, no net debt and total equity of $20.4m.

[Sideshow Bob]

Not a shareholder but own TRA. Was listening to a podcast yesterday about "you don't have to pick sides" ie like Buffet owning shares in Visa, Mastercard & AmEx.

I know Percy is 'well positioned" and owns both. Can pick a sector/industry and not just a company within that industry.

Well done to all holders.

[Rawz]

good result. well done 2CC.
Let the dividends flow.

Inventories probably the only fail. Maybe $2-$3m too high.

Overall its a nice little business making good money trading cheap as chips.

[sunnysleeper11]

2CC and MFB
Same NPAT
Same market cap
2CC has considerably better dividend

[blackcap]

2CC and MFB
Same NPAT
Same market cap
2CC has considerably better dividend

Debt? ......

[Rawz]

Yes 2CC enterprise value far superior than MFB who is still carrying a lot of debt.

[Joshuatree]

Congrats to all fellow holders and especially Percy who has championed 2CC.

[RupertBear]

Respect to Percy for his impeccable research on 2CC and backing himself to be “well positioned” You’re a legend Percy