2CC - 2 Cheap Cars Group

[winner (n)]

A bit if a worry when lorriana shows this intense interest in a stock ...somethings up

[lorraina]

Market depth.This is something I watch with all the companies I have shares in.A most important indicator.This indicator is worth sharing with 2CC as the buying depth has changed dramatically this week.
No I will leave my thoughts until their result is out later this month about eps and eps growth,together with dividend per share..
I will say I am expecting a modest result,however I am sure their out look will be positive.
Most probably gain momentum when their "super" site opens in August at Silva Park.
Be interesting seeing if taking compliance inhouse, together will more presales work such as panel beating,car painting etc improves their margins.
The reason I have not been buying more is I have been, and are building up my cash in advance of the coming  Trump Recession.
Only share I have sold lately has been the wife's BRM.Only shares I have bought are very modest additions to CDI, GEN,GFL Geneva Finance and a top up of the wife's MFB.

[Basil]

Fair enough mate.  Thanks for sharing what you're looking out for. 

[lorraina]

FY25 results
Profitable result in subdued market environment

2 Cheap Cars Group Limited (NZX:2CC) has today reported a net profit after tax (NPAT) of $3.3 million for the full year to 31 March 2025 (FY25), a $2.9 million decrease from FY24.

This result is in line with previously announced guidance of FY25 NPAT to exceed NZ$3m, aided by the impact of carbon credits carried forward from prior years.

Summary of key results
(Figures quoted are in NZ dollars. Comparisons are made against FY24.)

• Revenue and income: $82.0m, down 6%
• Gross margin: $17.8m, down 14%
• Vehicle sales: down 6% to 7,675 units
• Underlying EBITDA including finance income: $8.0m, down 32%
• Net profit after tax (NPAT): $3.3m, down $2.9m
• Underlying net profit after tax (NPAT): $3.3m, down 47%
• Underlying earnings per share (EPS): 7 cents per share (cps), down from 14 cps
• Final gross dividend: 2.97 cps
• Total FY25 gross dividend: 6.03 cps vs 11.56 cps

[mike2023]

The word down appears 7 times.

[lorraina]

No downs here.!...lol

While 2 Cheap Cars' strategy remains focused on margin optimisation, it is also targeting increased volume through its expanding retail footprint and enhancing the customer experience through digital and operational improvements.

A key growth driver will be the opening of a new flagship site at Clemow Road, Sylvia Park, scheduled for August 2025. At close to 5,000 square meters with capacity for 150 cars, this site will materially increase retail capacity and enhance brand visibility in one of Auckland's highest-traffic zones.

[lorraina]

I am very pleased with 2CC's very strong financial position,including a very positive $5,732,000 operating cash flow.
Current assets $21,735,000 far exceed current liabilities of $6,719,000.
Equity ratio is a very strong 61.58%
Silva Park super site is still due to open in August.
Interesting change in business model where they intend to buy cars from NZ public.
A very nimble company ready to meet changing market conditions.

[Dolcile]

Interesting change in business model where they intend to buy cars from NZ public.
A very nimble company ready to meet changing market conditions.

Obviously learning from what has been highly successful for Turners.   Todd Hunter said the other days that thee car sourcing was their single biggest competitive advantage.

[Dolcile]

I am very pleased with 2CC's very strong financial position,including a very positive $5,732,000 operating cash flow.

Just remember to deduct off the $2m of lease payments sitting further down the CF statement.

[lorraina]

Obviously learnings from what has been highly successful for Turners.   Todd Hunter said the other days that thee car sourcing was their single biggest competitive advantage.

That has always surprised me.
I have always thought you are better to buy what you want rather than what you are offered.
However 2CC will have it both ways from now onwards.
Will be interesting seeing if it affects their stock holding going forward.

[lorraina]

Just remember to deduct off the $2m of lease payments sitting further down the CF statement.

Will do.
I did think they would carry less stock,however it means they will have stock to fill their new super Silva Park site when it opens in August.

Cash flows from operating activities
Cash receipts from customers 80,464 86,779
Cash paid to suppliers and employees (72,390) (80,947)
Interest received 133 3
Interest paid - retail operations (80) (362)
Tax paid / received (2,395) (548)
Net cash inflow from operating activities before changes in
operating assets and liabilities 5,732 4,926
 

[lorraina]

Some interesting comparisons between TRA and 2CC.
Company,.....Share Price,. NTA ........ ,SP x NTA,........yield ....... PE ...... Market Cap.... Equity Ratio
TRA..............$6.77...............$1.66 ............... 4x ..........;;; . 4.28%.......15.61......$610mil............32.5%
2cc...............65cents...........43cents........... 1.5x. ............8.98%........8.98.........$29.6mil...........61.58%..

[lorraina]

xxxxxxxxxxxxxxxxxxxxx
Did not work.??
Tried copying SNOOPY"S post from the other Channel,which is a lot clearer than mine.

[Basil]

Comparing export grade apples and lemon's is a waste of time in my opinion.

[lorraina]

Ha ha.
Think you said the same years ago when I compared TRA with CMO...
Funny how one turned out to be a peach,the other a wind blown apple. .

ps.Can you name a NZ listed company that has a stronger balance sheet than 2CC's.