StockTalk

Interesting announcements today on new Board replacement:

NZX filing link:

http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/NZA/396474/375959.pdf

Gordon Shaw & Michael Stiassny invited

Mr Stiassny is also on NTL board

https://www.nzherald.co.nz/business/nz-autos-bank-pulls-funding-over-boardroom-changes/6Q5S4NHZ5U2C65O2E6BB6M5HKI/

not great for these guys

No idea why anyone would buy into this over TRA given it is of much higher quality and on similar PE ratio. Seems like the NZA founder/Supreme leader isn't cut out for the public listing lifestyle and that should concern any potential investor.

From the article: "All non-executive directors of the company, Charles Bolt, Tim Cook and Tracy Rowsell, as well as executive director and founder shareholder Eugene Williams - who owns 34.4 per cent of the company - resigned last month."

That is a major concern.  What is going on?  A fall out of personalities?  Or something more sinister?  They say they are trading profitably for the first 4 months of the fiscal so maybe it is the former.

A spurned founder with 34% of the company, you'd expect they would be highly motivated to sell out over time if they disliked the other management enough to resign. Think it was over irreconcilable differences in preferred company strategy, that in itself is concerning. What situation or decision was so difficult/polarising/risky that it detonated the board?

Pretty sure 2 cheap cars have been featured on Fair Go a lot.  Some of their business practices could be the catalyst for a fallout over business strategy...just a theory but obviously it's anyone's guess.
Where there is smoke there is fire.

Might be turning the corner. NCFO is in the black.

NZA Note (https://recastinvestor.substack.com/p/note-nz-automotive-investments-nzanzx)

Will be interesting to see if gross margins on vehicles are still falling or if they have improved when the annual result comes out for FY23.

With the huge demand for 10,000 replacement cars, due to being written off because of flood damage,NZA's 2cheapcars should be "well positioned."

Quote from: lorraina on Mar 01, 2023, 11:04 AMWith the huge demand for 10,000 replacement cars, due to being written off because of flood damage,NZA's 2cheapcars should be "well positioned."

You are right - though admittedly, I still would find it difficult to buy a car from a company implying in their name that they sell "cheap" cars. Sounds like a red flag to any potential buyer, doesn't it? Anyway, while some people look for quality, maybe they still found their market niche.

They are selling about 11,000 cars a year.
It appears, as per TRA, the profit is in add ons,finance and insurance.
I compared their prices on a Nissan Tiida and they are about $1,500 to $2,000 CHEAPer than other dealers such as TRA.
Think of them as The Pak n Save of the Used car dealers..

The wheels certainly fell off today . :-X

Last year's fall out between the founders continues with Eugene Williams starting up in opposition.
He is an aggressive seller of his shares.
I see this as a "window of opportunity" and have bought a good amount of NZA shares for myself and the wife.
New chairman,directors  CEO, and CFO have already turned the ship around and strengthened the foundations for further profitable growth.

On 45,554,500 shares on issue.
NPAT of $3.8 mil is eps 8.34 cents.......PE 3.6..
NPAT of $4.2 mil is eps 9.22 cents........PE 3.25
NPAT of $3.8mil..Payout half of eps in divie is 4.17 cents and at share price of 30 cents the yield is 13.9%
NPAT of $4.2 mil .Payout of half eps in divie is 4.61 cents and at share price of 30 cents the yield is 15.37%
Here is the company's result presentation.
Their outlook statement is very positive.
http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/NZA/412150/395357.pdf

PS Interesting noting their EV and Hybrid sales are 41% of total sales.

I think it would be prudent for investors to take into account that the automotive importers and sales industry is exposed to revenue and expenses distortions since the CCD and CCS schemes have been introduced.

These 'social engineering' experiments by the government affect the entire industry, for as long as the schemes are in place, and until they aren't. In simple terms the schemes generate revenues and expenses, where previously there were none, and disproportionately affect the importers and retailers depending on their choices of trading behaviours.

And, one day they will all just 'go away', perhaps soonish if Act/National get into government.

As with all forecasting, before investing you need to carefully look at the credibility of the company and its track record with previous forecasts.  This minnow, (market cap of only $12m), has not exactly been wildly successful to date and always seems to be mired in one form of controversy or another.  Incredibly rare to have seen the sort of boardroom ructions that have gone on here and may be indicative of a problem with the culture at this company.

One thing I always do when assessing a company as an income stock is look at the five year track record of dividends.  When you do that you can form a view of whether their track record suggests this will be a reliable source of retirement income or a highly speculative and / or variable one.
Might be worthwhile also for people to have a look at the downtrending chart for the last 2 years.
I'll leave it at that as plenty of others have also warned about this company.

I seem to remember you said much the same things about Turners when I started to invest in them,including director Paul Byrnes and Chairman Grant Baker.
Some very personal attacks on Baker when he preferred to pick up his new Ferrari ,rather than attend the TRA's agm in person..
NZA have a strng board and a very capable CEO.

Quote from: lorraina on Jun 13, 2023, 02:24 PMI seem to remember you said much the same things about Turners when I started to invest in them,including director Paul Byrnes and Chairman Grant Baker.
Some very personal attacks on Baker when he preferred to pick up his new Ferrari ,rather than attend the TRA's agm in person..
NZA have a strng board and a very capable CEO.

Not right for the Chairman not to attend the annual meeting for that reason.  Paul Brynes looked like a fish out of water taking the hospital pass Chairing that meeting.  He looked deeply uncomfortable to say the least.  Turners have come a very long way since those days.

As noted by Turners, import restrictions around emissions standards which really affect the bottom end of the market where 2 Cheap cars operate, have now come into force seriously affecting lower value imports so whatever they are basing their guesses on for FY24, most will take them with a grain of salt.
A strong board...yeah right, they haven't even been there for a year yet after the entire existing board resigned less than a year ago.  Founder has now set up shop in direct competition.  Gosh there must be a serious sized axe to grind there.

People might be interested to note it's extremely illiquid too.  According to MS Money average daily trade volume is just ~ $24,000 worth.
Good luck with it.  It's not for me as I have no need or desire to speculate on penny dreadfuls these days.

Thought you would have seen 41% of their sales are EVs and Hybrid.
Michael Stiassny...Well who is more experienced.?
Paul  Millward;Mr Millward will join NZAI from DB Breweries Limited (Heineken NZ) where he has enjoyed a 12-year stellar career, most recently as Sales Director NZ since 2017. In this role, Millward was a member of the executive leadership team, responsible for a team of 130 staff and revenue of circa $750m. Under his leadership, market share, return on sales and EBIT margins all increased significantly.

Prior to joining DB Breweries, Millward gained extensive experience in sales and finance roles in FMCG, retail and medical businesses not only in New Zealand, but in England, America and Denmark.

Mr Millward has a proven ability to lead and develop successful teams and build relationships with customers. He also brings a sharp commercial focus to building brands and market penetration.

NZAI Chair, Michael Stiassny noted Millward's appointment, saying, "The Board is pleased to welcome Paul to NZAI. He is focused, ambitious and his sales, marketing and leadership experience in the fast-paced world of FMCG will translate well to the automotive industry. We are confident he will bring exceptional strength to the NZAI team."

Mr Millward joins NZAI on 9 January 2023. Following a thorough handover, Interim CEO Gordon Shaw will rejoin the NZAI Board as an independent director.

Mr Millward will join NZAI from DB Breweries Limited (Heineken NZ) where he has enjoyed a 12-year stellar career, most recently as Sales Director NZ since 2017. In this role, Millward was a member of the executive leadership team, responsible for a team of 130 staff and revenue of circa $750m. Under his leadership, market share, return on sales and EBIT margins all increased significantly.

Prior to joining DB Breweries, Millward gained extensive experience in sales and finance roles in FMCG, retail and medical businesses not only in New Zealand, but in England, America and Denmark.

Mr Millward has a proven ability to lead and develop successful teams and build relationships with customers. He also brings a sharp commercial focus to building brands and market penetration.

NZAI Chair, Michael Stiassny noted Millward's appointment, saying, "The Board is pleased to welcome Paul to NZAI. He is focused, ambitious and his sales, marketing and leadership experience in the fast-paced world of FMCG will translate well to the automotive industry. We are confident he will bring exceptional strength to the NZAI team."

Liquidity.Not an issue.I have bought good holdings for the wife and myself since I started buying in February.

At least they're only down ~ 80% since listing in 2021 whereas MFB with the hugely experienced Tony Carter is down ~ 90%.  Suppose that's something although comparing this 2021 listing with that one is setting a very low bar.

I am more focussed on what their divies will be in a year to 18 months time.
Should I be right I would expect Eugene Williams will have sold out,and the share price will double or triple.

How many millions of shares has he still got left to sell ?

14,607,018 at 9th June  32.065% of the shares on issue.
From 1st June to 9th June he sold 554,417.
So plenty of liquidity currently.

Does this sum it up lorraina ?  Have I missed anything ?   Between jobs and bored this morning I decided to look further into this can of worms.
We have a terribly disaffected former major shareholder who still holds nearly a third of the shares and has a pattern of selling down at almost any price, just this month has driven the price down from 31 cents to under 27 cents average in most recent sales, see page 2 of this announcement http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/NZA/412839/396247.pdf setting up in business in competition using a name very similar to 2 Cheap cars, so there's major new competition.  Turners are very cautious on the outlook for FY24 but despite this the new competition and the removal of Govt subsidies for second hand hybrid cars with effect from 1 July, a major part of their business, NZA are somehow extremely bullish on their outlook?  WOW that's quite remarkable.

If they somehow pull that miracle off or look like they might do so after the interim report, how is the share price not just going to stay under inordinate pressure for the foreseeable future as Eugene cashes in more of his chips to set up more branches in direct competition?

Are they heading to court to sort out the name issue, gosh from press articles I have seen the two names of the competing business's look extraordinarily close.  How does that not end up in court and the lawyers getting hundreds of thousands, (a million+?), of fees with an uncertain outcome ? Even if they do get awarded damages can Eugene pay them without dumping his remaining shares at any price ?

So just to recap on 2022, almost the entire board resigned, the CEO resigned, and the auditors resigned.  In 2023 the CFO has resigned and is leaving after the notice period on 30 June 2023.  Their bankers also quit.  They are moving to a commercial facility with "Finance Now" rather than a bank and claim this is cheaper and Finance now understand their business.  Hmmm

Looking at trading results, the new CEO is quick to highlight strong Q4 trading in FY23 but omits, not even in passing to mention the massive tailwinds in this sector in that timeframe from 10,000+ cars that were flooded in Auckland and elsewhere that needed to be replaced, (my wife's car was one of them).

I can't see any official commentary of any kind by the company on how (what appears to amount to a commercial war between major shareholders) is playing out and affecting the company?  Why not ?

The new CEO who started in January 2023, while experienced in other fields appears to have no experience whatsoever in the vehicle industry.  How is that not a concern ?

Massive uptick in profitability projected for FY24 but no mention of how the removal of customer credits for hybrid vehicles (Govt clean car incentive scheme changes 1 July 2023) will impact things?
The lead-up to this change and removal of tax credits for hybrid vehicles is sure to be bringing forward hybrid purchases to this quarter but that won't last and we'll have a temporary vacuum after that.  (For example, I am so incredibly impressed with Mrs Hounds new latest model Kia Sportage I am thinking about buying the sister company Hyundai Tuscon hybrid which is eligible for a tax credit of just on $2,900 if brought on or before 30 June 2023.  (May test drive later this month)  No tax credit after that date.  I would probably buy the Kia Sportage hybrid instead, but it hasn't been released in N.Z. yet.

Really struggling to see your investment case here?  This is not an attack on you.  I'm just curious why you think this all works out well?.  I don't think I can ever recall in over 40 years of investing a more fulsome set of C Suite, Boardroom and Auditor resignations and then major shareholders at war to boot.  Its certainly an "impressive" series of ructions.

Its been interesting to look at this.  Quite a spectacular train crash by anyone's measure.  Whether they can get the business humming along is anyone's guess given all the issues, but this is definitely in the highly speculative category as far as I am concerned. 

As for their FY24 forecast...I think MFB are quite bullish on their growth prospects too and I think that sums up how skeptical one may be prudent to be.
Some interesting links below.

https://autotalk.co.nz/breakdown-of-trust-2-cheap-cars-mass-resignations-confirmed/
https://autofile.co.nz/founder-slams-departing-directors-
https://www.stuff.co.nz/business/124285063/owner-of-2-cheap-cars-applies-to-join-nzx
The way they have done business before https://www.laneneave.co.nz/news-events/2-cheap-cars-fined-nearly-500k-for-short-changing-consumers-on-marketing-claims/
The retail branch war commences with new car yards being opened up by Eugene in very blatant and direct competition.  Almost certain to end up in the courts and then be appealed, potentially more than once and potentially this may drag on for years.... https://www.rnz.co.nz/news/business/490935/2-cheap-cars-stakeholder-opens-competing-business-with-similar-name-adjacent-to-car-yards

I reckon minority shareholders best chance to make a quid here is to try and act as a go between mediator between the parties, avoid all the vast legal fees and endless courtroom drama's and get everyone to hug it out and make up.  There's a challenge for someone who is very, very brave and a highly skilled mediator.  As for me, all of the above makes me like my Turners shares even more lol. 

Holy crap Basil, what a read! Great post.

Michael Stiassny Will sort things out ...he's pretty clever.

Was once known as Dr Gloom

Doctor Doom will certainly earn his directors fees with this one lol   Some commentary on him for those not familiar with his reputation and abilities.
https://www.nzherald.co.nz/business/doctor-doom-portrait-of-a-corporate-undertaker/NPJ6R6ECUEFFGWIECRFYBC4PHU/
Maybe he thinks it will all be too hard, after all he is an insolvency and receivership specialist.
Thanks entrep.    Very interesting stuff looking at these sorts of corporate fiascos eh.

Quote from: winner (n) on Jun 14, 2023, 11:57 AMMichael Stiassny Will sort things out ...he's pretty clever.

Was once known as Dr Gloom

Strong Chairman. "Our Michael."
Good Board.
Excellent CEO.
Turnaround already working.
Strong Balance Sheet.
Equity Ratio ..55.07%
New Finance provider.Finance Now [part of SBS] working capital at a lower rate,
Strong  Operating Cashflow.$10.908 mil....[incredible]
Strong Brand.Easy scaleable.Currently just 12 branches.
Market.The under $15,000 is the right place.
Competition.Always good for activity.Think McKenzies and Woolworths or why Malls work.
Stock Turns that would make every other dealer cry for.
ChCh yard stocks 70 cars.Sells on average 50 a month.ie over 8.5 stock turns.
Strong online sales.
Currently trading below NTA.
Eugene Williams selling.A "window of opportunity" for savvy long term investors to get a good holding at bargain price.I work it out as buy one, get one or two free.
Liquidity.373 TRA traded so far today.92,500 NZA.
Hang on a big buyer has just taken the volume traded today of TRA up to 1,298.
Strong demand for Electric and Hybrid Cars.Currently 41% of cars sold.

ps.I still regard TRA as a great company.

Great posts vrom Basil (21) and lorraina (25).    A true debate:  zunny zide vs dark zide.   Neither is right or wrong.   The canvas is laid bare by the hard vork of the exponents of both views.  The exercise for investors is in pricing the risk. Basil is hunting down a different vox hole.  Lorraina eez in!

The Baron?  "High in ze sky on this one."  Or as my ground based colleagues might zay "ztuck in ze trenches."
But at zome point as an investor you have to make the decision to "go over the top."  The only way to meet your investment goal!   The zecret is to pick your trench and timing.  It is zafe in the trenches - zort of.  But stay there forever and eventually the gas will get you.   Your investment portfolio will choke.   May you both make that 'right decision', vhich may be different vor each of you!

RB

Quote from: winner (n) on Jun 14, 2023, 11:57 AMMichael Stiassny Will sort things out ...he's pretty clever.

Was once known as Dr Gloom

I had some contact and meetings with Michael Stiassny when he was (next to many other boards) running NZ Wind farms.

Not sure who gained from his services at that stage, but certainly not the shareholders who paid him. Probably too early to call the undertaker?

I think as a director of a going concern he is overrated, but hey - he seems to be great in selling himself.

Stiassny's record at NZA is impeccable.
Company was in disarray when he came on board.
He has arranged:
A New Board,
A New Auditor
A New Finance arrangement [at better terms]
New first rate CEO
New CFO.
Certainly steaded the ship, and set it on a new well focussed strategy,while all the time keeping the business running profitably.
An incredible achievement in just under a year.

Quote from: lorraina on Jun 15, 2023, 09:00 AMStiassny's record at NZA is impeccable.
Company was in disarray when he came on board.
He has arranged:
A New Board,
A New Auditor
A New Finance arrangement [at better terms]
New first rate CEO
New CFO.
Certainly steaded the ship, and set it on a new well focussed strategy,while all the time keeping the business running profitably.
An incredible achievement in just under a year.

Look - I hope it works out for you.

I just noted that I didn't found Stiassny very convincing in the past ... and certainly not on the board of a smaller company. I had as well the impression that he felt quite uncomfortable in dealing with the requests of unimportant retail shareholders. But sure - everybody can change and learn.

And hey, I made it even in my latest car hunt (earlier this year) to one of the NZA (I dare not mention the brand) car yards, which is more than I could say about TRA.

However - none of their cars made it on my shortlist. 

Well I am like you.
When looking for a CHEAP car as my granddaughter's first car, I went to Turners,Value Cars,2 Cheap and a couple of others.
Ended up buying her an old Toyota from Doug Drake Motors.A great small car for $4,000.
Crikey the AMI insurance bill was over $800..

I do find it an interesting gig for Michael Stiassny. NZA, even by NZX standards is a minnow. Market cap of $12.8m.

Add to that directorship of New Talisman (enough said).

Especially given his previous NZX listed directorships.

Maybe just trying to lessen any receivership work he gets with these two.....

Stiassny done a great job at Tower over the years

Only 'mistake' he's made is saying if anybody wants to take Tower over they'd need to front up with $1.40

Quote from: lorraina on Jun 15, 2023, 11:11 AMWell I am like you.
When looking for a CHEAP car as my granddaughter's first car, I went to Turners,Value Cars,2 Cheap and a couple of others.
Ended up buying her an old Toyota from Doug Drake Motors.A great small car for $4,000.
Crikey the AMI insurance bill was over $800..

Hmm - I wasn't looking for a cheap car, but for an economical and safe SUV :) ... and I found it at the local Kia dealer.

But anyway ...

A friend is on her second Kia.
Loves them.

ps.My 2004 Nissan is still serving me well. .lol.

Quote from: BlackPeter on Jun 16, 2023, 09:28 AMHmm - I wasn't looking for a cheap car, but for an economical and safe SUV :) ... and I found it at the local Kia dealer.
But anyway ...

We're not the only ones that think they are a really fabulous bit of kit.  Every year "Drive" do their very comprehensive evaluation to determine which is the vehicle of the year. https://www.drive.com.au/drive-car-of-the-year/2022/car-of-the-year-2022/
A little known fact is that down under we get a special local suspension tune for the Sportage which makes a world of difference with the handling.  I've driven a fair few medium sized SUV's over the years and they all get soft and squishy with lots of body roll in the tight corners.  The Sportage handles like a dream and the diesel engine has tons of grunt.  Mrs Beagle loves it so much she hides the keys lol.

You can't find vehicles like that at 2 Cheap cars eh  ;)

https://www.nzx.com/announcements/413216
Happening on 26th June NZA to new ticker 2CC.
Makes sense .
"This change marks a new beginning. A reset was needed and that is what has happened. It's now about accelerating performance to new heights. The new board and CEO are well established now and working exceptionally well together. We've made tremendous progress in the recent months with the appointment of new Auditor UHY Haines Norton Sydney, successfully changed over trade finance providers to strengthen our access to funds. There is almost an entirely new leadership team in place and their progress on results over the last quarter in particularly is a great start. We've done a reset, the past is past and we want to be judged on our performance from this point forward," Stiassny says.


Good volume so far today ;418,285 VWAP .279cents.
Ended the day with 526,285 traded VWAP .279 cents.

Quote from: lorraina on Jun 16, 2023, 03:16 PMhttps://www.nzx.com/announcements/413216
Happening on 26th June NZA to new ticker 2CC.
Makes sense .
"This change marks a new beginning. A reset was needed and that is what has happened. It's now about accelerating performance to new heights. The new board and CEO are well established now and working exceptionally well together. We've made tremendous progress in the recent months with the appointment of new Auditor UHY Haines Norton Sydney, successfully changed over trade finance providers to strengthen our access to funds. There is almost an entirely new leadership team in place and their progress on results over the last quarter in particularly is a great start. We've done a reset, the past is past and we want to be judged on our performance from this point forward," Stiassny says.


Good volume so far today ;418,285 VWAP .279cents.
Ended the day with 526,285 traded VWAP .279 cents.

Not so sure I'm a fan of the name change.  NZ Automotive at least sounds like a professional company, 2 Cheap Cars sounds like a scammy penny stock.  It could at least pretend on the NZX it wasnt a dodgy used car dealer LOL

Well it is a strong band already.
As Suzanne Paul would say "And it really works."...lol

Quote from: BlackPeter on Jun 16, 2023, 09:28 AMHmm - I wasn't looking for a cheap car, but for an economical and safe SUV :) ... and I found it at the local Kia dealer.

But anyway ...

Went halves with my daughter on a Kia Stonic 2 years ago . Pretty impressive spec for the money . I use it around town etc while she is at work . A little bit lighter on the pocket than the Audi ....

Quote from: lorraina on Jun 16, 2023, 03:16 PMhttps://www.nzx.com/announcements/413216
Happening on 26th June NZA to new ticker 2CC.
Makes sense .
"This change marks a new beginning. A reset was needed and that is what has happened. It's now about accelerating performance to new heights. The new board and CEO are well established now and working exceptionally well together. We've made tremendous progress in the recent months with the appointment of new Auditor UHY Haines Norton Sydney, successfully changed over trade finance providers to strengthen our access to funds. There is almost an entirely new leadership team in place and their progress on results over the last quarter in particularly is a great start. We've done a reset, the past is past and we want to be judged on our performance from this point forward," Stiassny says.


Good volume so far today ;418,285 VWAP .279cents.
Ended the day with 526,285 traded VWAP .279 cents.

Just as well they are not asking us to judge them on their ability to issue a news item with proper spelling and Grammar.

Correct.
Shareholders and the market will judge them on their ability to source good cars in Japan, and to market them profitably in NZ.

http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/NZA/413350/396821.pdf
Pleasing seeing CEO Paul Millward buying on market.

Quote from: lorraina on Jun 16, 2023, 09:29 AMA friend is on her second Kia.
Loves them.

ps.My 2004 Nissan is still serving me well. .lol.

So is my 1994 Suzuki, it always passes its 6 monthly warrant no probs,  wife reckons she will just cremate me in it when I go. She has 2 Nissan Lafesta's with a combined value of about 8k so all up our 3 cars only worth 10k, pretty good value aye.

Ticker code change and name change 0n 26th June.
2CC.2 Cheap Cars Group ltd.

https://www.nzx.com/companies/2CC

Well well well.
Which company is the first company on NZX list of companies.?
Which company is the first company on my Stocknessmonster.com watch list.?
Which company is top of the list of my ASB share trading platform watch list.?
2CC Number One on all lists.

Brilliant.

Quote from: lorraina on Jun 26, 2023, 08:39 AMWell well well.
Which company is the first company on NZX list of companies.?
Which company is the first company on my Stocknessmonster.com watch list.?
Which company is top of the list of my ASB share trading platform watch list.?
2CC Number One on all lists.

Brilliant.

Only came in at #2 on my stockness ....... 14D still tops 1414 Degrees

So don't take an interest in that Percy

Crickey 14D has an even lower market cap than 2CC.

A lot of their business has been aided by the clean car rebate scheme, for example
https://www.2cheapcars.co.nz/used-vehicles/toyota/aqua-hybrid/94686
In this instance this hybrid is eligible for a clean car rebate of $1,676 which is a significant 16% of the vehicle's purchase price and brings the net effective price to less than $9,000.
The final day for this tailwind is this Friday 30 June.  After that the incentive for hybrid cars disappears and it becomes a headwind for the rest of their non hybrid and EV business with a lot of imported non-hybrid cars attracting significant new costs under the scheme.  Not an expert on the extent of the changes coming but I was quite shocked to see on one website regarding new cars on the weekend that from 1 July 2023 a ~ 7 liters per 100 km vehicle (which is a pretty efficient bit of kit) attracts a new fee of nearly $3,000 and a ~ 9 liters per 100 km vehicle a new fee of nearly $4,000.!  Wow that's significant on a say $30,000 - $50,000 new car!

More information on these changes here.  https://www.nzta.govt.nz/vehicles/clean-car-programme/clean-car-discount/clean-car-discount-1-july-2023-changes/#:~:text=From%201%20July%202023%20rebates%20and%20fees%20for,will%20decrease%2C%20and%20the%20maximum%20fee%20will%20increase    A bit less outrageous for used vehicles I see but this new headwind is something I see as being very serious.
Obviously with "cheap" cars the percentage difference (extent of the new headwind) and its effect on the affordability of the purchase is a lot higher relative to the purchase price whereas at the other end of the spectrum I doubt anyone buying a new Ferrari will be worried about the changes.

Very easy for management who have no real experience in the industry to underestimate the effect of changing from an environment of tailwinds to headwinds.  Take their forecast for FY24 with a very large grain of salt. 

Just as an aside I will add that for vehicles bought in N.Z., like Turners do for most of their cars this effectively becomes a tailwind as the whole pricing structure of the used car market changes, anything bought in N.Z. as a secondhand car that doesn't attract these new fees confers a meaningful competitive advantage.

Have car dealers been making surplus margins with the rebates?

Of course they would have.
They are not registered as a charity...
NB.Warning.
Never stand between a used car salesman and a dollar.

Quote from: Basil on Jun 26, 2023, 10:33 AMThe final day for this tailwind is this Friday 30 June.  After that the incentive for hybrid cars disappears ...

That's not quite right, the fees and rebates are not related at all to the 'type' of the vehicles, they are calculated against the CO2 emissions of the vehicles. Check the link you provided for more detail, the charts are a helpful indicator and you'll see that the bottom axis is CO2 emissions.

You are also confusing the Clean Car Discount/Fee (CCD) with the Clean Car Standard (CCS).

The CCD fee or rebate is incurred by the buyer of the vehicle, it has no financial effect +/- on the dealer. So it is not a tailwind or a headwind to the dealer. These are the fee/rebates that are changing on 1st July, the impact is on the buyer.

The CCS fee or CO2 credit is incurred by the importer of the vehicle. These do affect the +/- financials of the importer. There are no changes occurring to the CCS fee/credits.

You're quite right Buzz its all about the CO2 emissions and you're correct I haven;t drilled right down into this.  In general though I noted there are some very big changes coming, that's the point I was trying to make and those changes as a percentage of the purchase price are most acutely felt at the "cheap" end of the car market.

Even at the less pointy end I was quite unpleasantly surprised to see a new Kia Sportage diesel which is a very efficient bit of kit for a medium SUV at only 7.3 liters per 100 km, (I am so impressed with the Mrs one I was thinking about getting one for myself), will attract a fee of just on $3,000.

We're not short of a quid but to me that feels like quite a big and unwelcome increase on a $47,000 vehicle adding 6.4% to the cost so I can only imagine how that sort of increase would feel to someone shopping for a $10,000 vehicle, adding 30% to the cost!
Do you think that might change buying habits ? 

My contention is that no matter how you slice and dice this, something this material that affects the buyer this way affects the dealer too.  Less people changing cars either because they're more unaffordable, people find it objectionable to pay this sort of money in CO2 taxes or the increased capital cost makes its relatively more attractive to simply fix their existing vehicle.

Quote from: Basil on Jun 27, 2023, 01:13 PMYou're quite right Buzz its all about the CO2 emissions.  Some very big changes coming, that's the point I was trying to make and those changes as a percentage of the purchase price are most acutely felt at the "cheap" end of the car market.

Even at the less pointy end I was quite unpleasantly surprised to see a new Kia Sportage diesel which is a very efficient bit of kit for a medium SUV at only 7.3 liters per 100 km, (I am so impressed with the Mrs one I was thinking about getting one for myself), will attract a fee of just on $3,000.

We're not short of a quid but to me that feels like quite a big and unwelcome increase on a $47,000 vehicle adding 6.4% to the cost so I can only imagine how that sort of increase would feel to someone shopping for a $10,000 vehicle, adding 30% to the cost!
Do you think that might change buying habits ? 
Something this material that affects the buyer this way affects the dealer too.  Less people changing cars.

Absolutely that's what it's designed to do, it is social engineering to incentivise low emission vehicles and disincentivise high emissions. My point though is, this CCD affects the buyer, it has very little effect, none financially on the dealer (except what type of vehicles they choose to sell). We cannot attribute CCD to a tailwind or headwind to a car dealer.

CCS on the other hand, we definitely can. And both of these schemes are designed to and do distort the 'market', and are temporary when the powers that be decide enough is enough, they will vanish. If Nat/Act get into government, they will disappear a lot more quickly.

It might help to point out that the CCD fee/rebate ONLY applies to the first registered buyer of the vehicle in NZ (i.e. new or used imported vehicles). It does not apply to any subsequent re-sales of vehicles.

I don't think the rebate/fee will effect the used market as much as the new market. Most used car purchases (especially 2CC target market) are 'needs' base. VS new car purchases one could argue a good portion is 'want' based. If i think back to the 5 used cars Ive purchase in my life 4 of them were needs and only 1 was a upgrade purchase. Im now on the company car gig so i dont have to worry about that anymore.

2CC take (by memory) 42 days to sell a car once it arrives at a dealership. They can pivot their buying out of Japan to meet demand or forecast demand based on how to maximize the new CO2 rebate.

Turners guru Todd Hunter has told us the NZ vehicle fleet is aged and a lot of cars need replacing sooner or later. This is the- I NEED to get a new car this weekend factor. And hopefully its bought from 2CC or Turners as I have a few bob each way

Quote from: Buzz on Jun 27, 2023, 01:23 PMIf Nat/Act get into government, they will disappear a lot more quickly.

Yes...I think there's going to be a lot of farmers pretty annoyed about having to pay a whopping $6,900 Ute tax on their new Ford Ranger or Toyota Hilux.

Partners car was just written off so will make sure we have a look around 2cc and see how good (or bad) their service is.

(My partners car was parked up and driven into by a fully insured third party - my partners insurance doesn't actually cover the full cost of an exact replacement. However, she was told by her insurance company that, had she been uninsured, she could have claimed the full cost from the guilty party's insurance co. Seems very odd).

Mrs has been involved in a few incidents over the years and I can tell you that's standard protocol.

Annual Report out

Anything new that hasn't been said before

It's only 80 pages odd ...should have put more pictures in.

http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/2CC/413832/397373.pdf

2CC Annual Report 82 pages ........Turners Annual Report 116 pages

Maybe a useful metric to assess the relative value of each company

http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/2CC/413832/397373.pdf

Wow what a start to the new year ..going  very well ...just look at those margins

Love the bits about being 'being 'super focused' and 'ahead of the curve


http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/2CC/414313/398016.pdf

percy failing in his duty to keep this thread on first page ...had to go to page 4 to find it

Plenty of buyers lined up,including myself,but the big seller appears to be on holiday.
I too loved the bits about being 'being 'super focused' and 'ahead of the curve.
Proving to be true..!!..
I sent the CEO a quick email :
Crickey..
Another cracker..

Quote from: lorraina on Jul 06, 2023, 09:29 AMPlenty of buyers lined up,including myself,but the big seller appears to be on holiday.
I too loved the bits about being 'being 'super focused' and 'ahead of the curve.
Proving to be true..!!..
I sent the CEO a quick email :
Crickey..
Another cracker..

You and many others queuing up to buy ...big time?

Who'll blink first .....Eugene or you guys

Eugene might have 'guessed' a cracker update was due so just waited a while longer

Two scenarios.
Eugene sees value holding onto his shares.
He may be in discussions with a buyer to sell all or most of his shares.
Currently the big buyers would only be bidding against themselves.
Currently sellers from 32 cents to 85 cents have 53,416 shares.
Buyers want 610,840.

Massive tailwinds in Q1 and Q2 that won't repeat.
CEO has basically no experience in the sector and is basing his forecast on trading conditions when strong tailwinds prevailed. Caution required.

 EV/HEVS leadership is further strengthened moving to 52% of total sales for Q1 (up from 41% for FY23).
This is the sector of the market that is growing quickest.
2CC should retain their leadership in this sector for the foreseeable future..

Guidance says $5m npat ..... eps 11 cents ......with future growth going to happen

On PE of 10 share price $1.10

OMG

Another cracker

Article in the herald: Financial advantage of E-cars likely to disappear in less than one year, their exemption from Road User Charges goes only to March 2024.

https://www.nzherald.co.nz/business/road-user-charges-shock-on-the-way-for-ev-owners-and-aa-sees-double-charging-danger/KKO77UDN4NC67NXWOLHH57BDP4/
(probably paywalled)

Might be an issue for a car dealer who mainly sells preloved old e-cars?

E car subsidy already gone, RUC payments likely to start in less than 9 months and the old battery problem of preloved e-cars hanging like the sword of Damocles over the buyer ...

I am wondering whether this might impact on the market for 2 cheap E-cars?

Thank you for bringing a dose of reality to this thread BP.

Quote from: winner (n) on Jul 06, 2023, 10:05 AMGuidance says $5m npat ..... eps 11 cents ......with future growth going to happen

On PE of 10 share price $1.10

OMG

Another cracker

Market cap is currently $14.5 mil.
NPAT of $5 mil would see them upgrade current sites and expand their footprint.
Currently 12 sites.Room for another 3 to 6. [up to 50% footprint increase]
Business strategy/model simple and effective.
Online sales were 17%.Not sure where they are currently.
With their own staff buying in Japan 2CC can react straight away to market changes.

Hmmmmmmmmmm.I am having trouble buying more.???????????????
Appears NZX do not approve of my buying order via Craigs..??????????

2CC risk to EVs is overstated on this thread.
They can pivot buying out of Japan back to the next flavor of the month quickly. It takes them 28 days to sell a car once on the lot

And with PHEV, potentially RUC and tax on petrol, how are "they" going to get around that - e.g. how many Km's done on electric  to work out the RUCs??

Quote from: Jay on Jul 06, 2023, 08:11 PMAnd with PHEV, potentially RUC and tax on petrol, how are "they" going to get around that - e.g. how many Km's done on electric  to work out the RUCs??

It's less about "how" they will, and more about 'they' will, figure something out. The folks at MOT (responsible for the legislation and policies) are busy at their work trying to achieve a shift in buyer and importer behaviour. They have to, it's in the legislation. They won't stop either, unless the government mandates a change in legislation.

Anyone invested in the car market (and soon heavy vehicles as well) really does need, imo, to factor in that the whole market in recent times has been massively distorted by the governments' social engineering experiments with removing or lessening user charges during Covid and introducing clean car schemes penalising 'dirty cars' and rewarding 'clean cars'. These will all change, either slowly if Labour get back in, or very quickly if National get in.

Whether or not you agree with all the background government legislated interventions is irrelevant, they have happened, and the market is a very different place now from what it was a couple of years ago. Kudos to the vehicle industry for adapting to the changes and some prospering whereas others have not.

As time goes by, these legislative interventions will move and shift or even be removed, and the vehicle industry will change with it. The windfall profits that we see in the past couple of years will be replaced by business  as usual. It's only a question of who comes out the other side with the best business model when all the interventions and profit enablers have been replaced by no incentives anymore, and taxes on vehicles that don't currently exist. Importer and buyer behaviours will continue to change.

But either way, it will change again and again. The thing I'm trying to say is that vehicle industry business performance now is not reflective at all of business performance in the future, it is a mirage as it has occurred in times of unprecedented interventions by the government with incentives and penalties, that in time will go away, maybe slowly, but possibly quickly.

That means, a valuation analysis of the vehicle importers and retailers now, is not, at all, a reliable indicator of their performance in the future.

Agree.. has been a tough couple of years for used car retailers. The regulatory changes has caused a drop in the used car market total sales. FY23 number of used car sales is down 20% odd from FY19 levels.

Turners love to say 20% of the NZ vehicle fleet is 20+ years old.

All looking good for 2CC to pick up their fair share of increased used car transactions going forward.

Just want to add that if this was trading with a $80m market cap it would be a totally different story.. the 2CC bulls wouldn't even exist and we wouldn't be talking about it here or the other place.

It's a $12-$$15m stock.. deep value play. Will do $5m npat and I calculate $6m FCF last year once adding back inventory to bring it to their steady state of $10m.

Once the value gap has been covered it will all go quiet and sit on page 8 of the forums..

Good post Buzz.  The new clean car standard is truly bizarre.
Did nearly 300 km's in the wife's new, latest model diesel Sportage yesterday, (medium SUV) and with 2 large people on board and a very large dog, we averaged a truly remarkable 5.8 liters per 100 km's and that's with me driving with my lead foot ! I've never seen fuel economy like that in my life before and they now whack a vehicle with that remarkable economy with a dirty vehicle tax of $2,825.  That's absolutely bonkers.
If this sort of madness endures it's going to have a significant effect on the vehicle market.

The current madness only applies to vehicles first registered when imported into N.Z. so that confers a significant advantage to Turners who buy the vast majority of their vehicles locally.

Knocking on 50 cents door

Over $1 seems inevitable from here

Currently a buyer at 51 cents.
Seller at 60 cents has 4,000.
Thought I better not..??......lol.

Quote from: lorraina on Jul 12, 2023, 04:10 PMCurrently a buyer at 51 cents.
Seller at 60 cents has 4,000.
Thought I better not..??......lol.

Despite a lot of contrary yapping you appear to have read this one well. Congratulations Percy. Long may it last.

Possibly a bit of analysis paralysis..

End of the day 2CC sell used cars..

Well fellow 2 Cheapers it is great seeing our company as NZX's Top Weekly Gainer,up 21 cents or 55.26%.

Quote from: lorraina on Jul 12, 2023, 04:10 PMCurrently a buyer at 51 cents.
Seller at 60 cents has 4,000.
Thought I better not..??......lol.

The upward share trajectory continues unabated.
Currently a buyer at 65 cents and a seller at 68 cents [only has 250].
Next seller is at 75 cents with 5,000 to sell.

Quote from: Basil on Jul 06, 2023, 09:48 AMMassive tailwinds in Q1 and Q2 that won't repeat.
CEO has basically no experience in the sector and is basing his forecast on trading conditions when strong tailwinds prevailed. Caution required.

Man you really are nana negative pants on this stock. Lets not be too one eyed.

https://sendy.tarawera.co.nz/l/J6oLVth2f3f6IXNYvUBQEg/x75hQhxH6vfvajYa5ijYjQ/mx0nNIS86koCXcfFddrrHA
Other listed companies with major shareholders includes;
AFT 68.69....AGL,50.79% BGP,77.95%..DGL,66.11%...JLG,70.83%+,..MCK,70.79%.

Incredible upgrade in guidance today ......~20% more than previous guidance ....which in itself was rather incredible

Don't cheap and recession go together in some sectors ....to produce incredible results

https://www.rnz.co.nz/news/business/497565/used-car-dealer-2-cheap-cars-revises-full-year-profit-expectations-after-strong-sales

Can't help myself wondering if he's factoring in that National are odds on favorite to win the election and have stated they will remove all incentives on hybrids PHEV's and EV's which seems to be what 2CC's mostly stock.  I suppose in the short term this might boost sales of that type of vehicle pre-election but after that...

If a company has a multi year track record of issuing forecasts and meeting them and / or getting close it adds a fair bit of cred to the veracity of their forecasting but that's not the case here and simply extrapolating 5 months' worth of sales and EBIT to a full year, (which looking at the numbers here seems to be the case), seems fraught with forecasting risk especially when its well known in the market the clean car scheme has provided strong tailwinds to the motor vehicle sector this financial year to date.  Good luck to shareholders.  This is not a proven enough investment for me to have trust, but each to their own.

Quote from: Basil on Sep 08, 2023, 07:33 PMCan't help myself wondering if he's factoring in that National are odds on favorite to win the election and have stated they will remove all incentives on hybrids PHEV's and EV's which seems to be what 2CC's mostly stock.  I suppose in the short term this might boost sales of that type of vehicle pre-election but after that...

Disc: don't own 2CC

But, your summary of the National government policy is not correct, nor is it necessarily an issue for 2CC. Remember, is only first time in NZ new or used 'registrations' of vehicles that the CCD scheme affects, i.e. imports that are sold, registered and then qualify for the buyers discount or fee [it has absolutely no financial effect whatsoever on the seller].

The CCS scheme which affects importers may be unaffected under National, unless ACT have their say as they want to repeal that as well. In any event, one would need to know the finer details about the percentage of ICE vs EV/BEV/PHEV vehicles 2CC import (new or used) to understand the effect that CCS has on them as importers, in terms of emissions credits, or $ fees. Secondly, one would also need to know the percentage of sales of 'new or used' vehicles, before those CCS credits or fees apply, as the credit or fee does not apply at all until the vehicle is sold and is registered by the buyer.

There is no doubt that the CCD/CCS schemes have distorted the market, and it seems that 2CC have figured out how to leverage the schemes to their advantage, however it doesn't stand to reason that the removal of the CCD scheme will have any effect on 2CC whatsoever. And, it is just a guess as to whether removal or a change to the CCS scheme is a big deal to 2CC, as it may not be removed and even if it is, there's no indication yet of how or even if, it might be changed.

Remember, all vehicle importers and dealers are in the same boat, all of them are affected by the schemes, all of them pivoted their business models as the schemes came in, and all of them will pivot again if the schemes are repealed or changed.

Fair comment except Turners source the vast majority of their cars locally so are less affected by any changes.
Disc Own Turners shares.

Quote from: Basil on Sep 08, 2023, 08:35 PMFair comment except Turners source the vast majority of their cars locally so are less affected by any changes.
Disc Own Turners shares.

Although this is correct a great number of their sales come from on behalf sales.I think this about 50% of sales.These cars are not owned by Turners.Turners receive a commission selling them.
So where to do they buy their cars.People offering them at their sites.?Buying on trade  me,Fleet sales.?
There fore they have to take what is offered,.?
2CC have their buyers in Japan buying from auctions.I think David Sena spends half his time in Japan buying.
This means 2CC can buy the cars they WANT and can react to NZ buyers' demands straight away.
I have no reason to say anything against Turners.I think they run a fantastic business,however 2CC are running a very good business.
Both CMO,[mc$300mil] and TRA,[mc$309mil] are over 10 times the market cap of 2CC [mc $27.78mil]  .
2CC's business model is simple and scalable.Their balance sheet is very strong.Their operating cash flow is great,,as are their stock turns.


PS.CMO have to sell what their franchise covers.No choice...lol.

Quote from: Basil on Sep 08, 2023, 08:35 PMFair comment except Turners source the vast majority of their cars locally so are less affected by any changes.
Disc Own Turners shares.

The vehicle importer earns carbon credits on low emission vehicles when the vehicle is first registered in NZ (that's the CCS scheme). So the vehicle costs no more or less to buy and import, but if it's low emission, the importer effectively 'makes money'. These carbon credits can be monetised by selling them to other importers or used to offset fees. Of course this is not available to a dealer whose vehicles were purchased in NZ.

So if 2CC skew their imports to low emission vehicles, they stand to make more money than they would have, had they bought the vehicle in NZ and sold it. It doesn't necessarily correlate that Turners who buy their vehicles in NZ, are better off than an importer of vehicles.

It's no coincidence that Tesla has made record profits in NZ, being solely BEV imports.

NZSA have done a great job safe guarding minority shareholders, by getting David Sena to agree to not use the "creep" option to increase his shareholding after the current "Eugene Williams" deal for 3 years.
NZSA are therefore endorsing the "Williams" deal

.https://www.rnz.co.nz/news/business/497771/nzsa-strikes-deal-to-protect-2-cheap-cars-minority-shareholders-after-proposed-share-sale

Not sure about all the hype around 2cc. If it looks like a bubble...

Even at the current resurgent SP, investors have lost 50% of their stake from 2 years ago. Have they turned a corner? Maybe, but extrapolating a short term growth spurt has been the undoing of many an investor, including me. Even for traders, the low liquidity makes for a choppy TA. I'm "steering" clear.

Disc. Not a holder, but have a stake in Turners.

INCREDIBLE.

http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/2CC/418984/403909.pdf

Share price could go over $1 by end of week

Especially if dividend hounds get excited with that 10 cent divie coming

Just interrupting my holiday to congratulate Percy/Lorraina and other holders.

2CC has been one of the most successful calls of the year.... from lows of 22c to highs (to date,)  in the 80c range...up well over 200% in 5 months with some generous dividends ( perhaps 10c)  and more capital appreciation yet to come.

A life changing investment decision. Well done and congratulations.

http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/2CC/419601/404675.pdf
CEO adding to his holding.
I also added to the wife's holding this morning.

Holders should be happy.... margins up 41% even tho' vehicle sale numbers down 12%...

https://www.nzx.com/announcements/421650

2 Cheap Cars Group Limited (NZX:2CC) has today reported a record $3.2m net profit after tax (NPAT) for the half year to 30 September 2023 (HY24), an increase of $2.6m over HY23.

Summary of key results
(Figures quoted are in NZ dollars. Comparisons are made against HY23)
• Revenue and income: $41.9 m, increased 4%
• Gross margin YTD: $10.1m, up 41%
• Underlying EBITDA including finance income: $5.7m, up $3.0m
• Net profit after tax (NPAT): $3.2m, up $2.6m
• Underlying net profit after tax (NPAT): $3.2m, up $2.2m
• Underlying earnings per share (EPS): 6.9 cents per share (cps) vs 2.3cps
• Vehicle sales: down 12% to 3,776

Plus upgraded expectations

Following the strong finish to the half year, and a pleasing October result with continued strong margins, the Company is increasing FY24 net profit after tax (NPAT) guidance to be above $6.8m, up from between $5.2m and $5.7m as previously communicated in September.

Outstanding result well received by the market.
Currently up 14 cents or 19.7% to 85 cents,mainly driven by the strong outlook.

Quote from: lorraina on Nov 15, 2023, 03:44 PMOutstanding result well received by the market.
Currently up 14 cents or 19.7% to 85 cents,mainly driven by the strong outlook.

Well done.... your average holding SP must be a figure of great beauty for the path ahead.

Quote from: lorraina on Nov 15, 2023, 03:44 PMOutstanding result well received by the market.
Currently up 14 cents or 19.7% to 85 cents,mainly driven by the strong outlook.

Think that means you are very "well positioned"

Quote from: Left Field on Nov 15, 2023, 04:49 PMWell done.... your average holding SP must be a figure of great beauty for the path ahead.

Did the research, backed himself and the rest is history! BOOM off to the Moon!

Yes been an adventure.
Started buying at 33 cents,.Went nuts when they hit 23 and 24 cents.My average cost is under 35 cents.
Wife's average was 45 cents,but most probably up a bit now.
My thinking was an opportunity like this is what we wait for,so best to go for it when you see it.
I certainly went for it...Model portfolio allocation went right out the door.lol.
Yes thanks Shining Star... "well positioned"..

After the recent disclosure of CFO buying shares, Stiassny buying up...

http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/2CC/422059/407706.pdf

Naaaaiice

Some best performing shares
NZX data shows the 2 Cheap Cars share price lifted by almost 180%, from $0.315 to $0.88.

Gentrack was a strong performer, up 154.14% from $2.25 a share to $4.20.

MHM Automation lifted 70% from $0.96 to $1.673.


I thought we were "well positioned" with 2CC....lol.

And lest we forget..... SKO closed on Friday at $4.30, up 115% from its lows of $2.00 earlier this year.

Crikey......Perhaps Percy/lorraina is selling.......1 mill shares available at 81c!! lol.

No not me or the wife.
We bought to hold.
Be interesting to sell how long it takes the seller to sell.
It took us a good 9 or 10 months to build our holdings

New energy vehicles will lose their comparative advantage with road user charges applied from 1 April 2024.  That's the first step to RUC being applied to all vehicles so even hybrids will in due course pay their full fair share of road charges losing some of their comparative operating economies.
These sorts of vehicles have been ~ 50% of 2CC business model in 2023 and the previously available incentives on newly registered low carbon emitting imported vehicles will have provided a huge tailwind to date.   I am sure they will adapt their business model accordingly over time but nevertheless it will be interesting to see how they trade going forward without the strong tailwind from incentives they have enjoyed to date.  I would think if one was going to buy a used hybrid / PHEV or EV one would have done so in the previous quarter so there could be quite a vacuum of demand for a while.

Million dollar seller gone...

It will be interesting how they allocate capital going forward. Expect continuation of no debts and positive cash flow.


If they weren't looking to expand. Imagine them using the funds to buyback shares, the increase in roe would be awesome. Unfortunately the thin volume wouldn't support. I don't think there are any rules against it.

Slight downgrade for those interested....

https://www.nzx.com/announcements/427160

Profit downgrade because of currency.
New projections.
$6.3 mil npat =eps of 13.82 cents giving a PE of 5.93 at a share price of 82 cents.
$6.5 mil npat= eps of 14.26 cents giving a PE of 5.75 at a share price of 82 cents.

"All businesses that buy inventory offshore are affected by exchange rate variations even when hedging is in place. Overall, the Company is in great shape and remains on course for a record-breaking result.

"A decision regarding dividends will be made by the board when full year results are approved. Provided the market remains stable, the strong performance to date indicates that a dividend at the highest end of the policy range is likely,"

https://www.nzx.com/announcements/429880
Paul Millward has achieved incredible results in just 18 months.
Sorry to see him leave,however we should see some exciting times ahead with David Sena taking over as CEO.
Owner operator certainly will have the owner's eye.

Quote from: lorraina on Apr 22, 2024, 10:37 AMhttps://www.nzx.com/announcements/429880
Paul Millward has achieved incredible results in just 18 months.
Sorry to see him leave,however we should see some exciting times ahead with David Sena taking over as CEO.
Owner operator certainly will have the owner's eye.

I'm not so sure this move is good for 2CC holders...... time will tell.

An exciting promotion from 2CC.

🚗🔥Win a Car in May!!🔥🚗



Buy your dream car this May'24 and go into the draw and you could be getting your car purchase for FREE*!! 🤯🚙💨 Whether you're looking for a sleek sedan, a spacious SUV, or a zippy hatchback, we've got you covered.



Sale details:

· Every completed purchase in May goes into a lucky draw



· Promo valid from 1st May'24 to 31st May'24.

Any idea who might put through an on-market buy (or sell) for 287,436 + 2,564 (both exactly at 3:33:16pm)? That's a $226,200 buy/sell right there. Average daily volume is about ~20k.

The seller was the 8th largest shareholder.He is a Christchurch investor, who has a lot of large holdings in a number of small cap companies.He invests in his own name, as well as two finance companies he owns.This holding was in one of his finance company's name.
I am now guessing he sold via a Christchurch broker to another Christchurch investor, who also invests in small cap companies.
I expect we will know the new owner's name when 2CC's annual report comes out in June.

Quote from: lorraina on Apr 30, 2024, 08:06 PMThe seller was the 8th largest shareholder.He is a Christchurch investor, who has a lot of large holdings in a number of small cap companies.He invests in his own name, as well as two finance companies he owns.This holding was in one of his finance company's name.
I am now guessing he sold via a Christchurch broker to another Christchurch investor, who also invests in small cap companies.
I expect we will know the new owner's name when 2CC's annual report comes out in June.

Interesting, thank you. Presumably the sale was carefully aligned to enough ASK in the queue, it seems to have been 'on market', so therefore the question moves to why did the seller lose confidence in 2CC and who was the buyer wanting such a significant stake?

Perhaps more interesting might be how do you know this? Where do you get these insights from?

Quote from: lorraina on Apr 30, 2024, 08:06 PMThe seller was the 8th largest shareholder.He is a Christchurch investor, who has a lot of large holdings in a number of small cap companies.He invests in his own name, as well as two finance companies he owns.This holding was in one of his finance company's name.
I am now guessing he sold via a Christchurch broker to another Christchurch investor, who also invests in small cap companies.
I expect we will know the new owner's name when 2CC's annual report comes out in June.

Number 9 on the list buy any? 🤭

Not any of the 290,000 off market yesterday,however I have been slowly adding to both my holding and the wife's.

From Autotalk.
Despite the challenges of fewer selling days due to public holidays and school breaks, the surge in registrations of imported used passenger vehicles by 10% in April 2024, reaching 8731 units, is a significant trend to note.

This figure marks a notable increase from the 7939 units registered in April 2023.
Positive for TRA and 2CC.

Quote from: lorraina on Apr 30, 2024, 07:25 PMAn exciting promotion from 2CC.

🚗🔥Win a Car in May!!🔥🚗



Buy your dream car this May'24 and go into the draw and you could be getting your car purchase for FREE*!! 🤯🚙💨 Whether you're looking for a sleek sedan, a spacious SUV, or a zippy hatchback, we've got you covered.



Sale details:

· Every completed purchase in May goes into a lucky draw



· Promo valid from 1st May'24 to 31st May'24.

May should be a great month for 2Cc.
Due to report at th end of the month.

While the NZX link to 2CC results seems to be malfunctioning this morning..... Jarden's site has the following info.... looks like good news for holders, EPS growth impressive as is 213% increase in NPAT.

Later edit.... NZX site now working ... here's the link;

 https://www.nzx.com/announcements/431658

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

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

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.

Quote from: lorraina on May 24, 2024, 08:55 AMA 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.

We desperately need this to happen to PAZ. Lol

Since I started buying I have never stopped.
Even buying today.
No debt,cash on hand,equity ratio 59.28% strong balance sheet, positive cash flow from operations,stock they can increase or decrease quickly,selling right priced used cars they source themselves from Japan.Current assets 2.7 times current liabilities.Simple profitable business model,with growth prospects.
At 88 cents.Low PE ratio [6.28]and high dividend yield [gross 13.14%] beats every other NZ listed company.
At $1.25 share price the current PE would be 8.928 while the gross yield would be 9.248% and net yield of 6.65%
Deserves a PE ratio between 10 and 12 in my opinion.ie share price between $1.40 and $1.68.
"It is incredibly tough going right now for very many New Zealanders, but they still need cars, and those cars must be affordable."said 2CC's chairman today.
Turners and 2CC are well positioned to supply those cars.

I'd love to buy into good stocks like 2CC/TRA with great yeilds but on a 39% margin tax rate it just doesn't seem worth it - as compared to investing in a global PIE fund that tracks an index.

Quote from: Dolcile on May 26, 2024, 08:10 AMI'd love to buy into good stocks like 2CC/TRA with great yeilds but on a 39% margin tax rate it just doesn't seem worth it - as compared to investing in a global PIE fund that tracks an index.

Bob or two each way might be a good idea.  Marlin and Turners are two of my biggest positions.

Quote from: Dolcile on May 26, 2024, 08:10 AMI'd love to buy into good stocks like 2CC/TRA with great yeilds but on a 39% margin tax rate it just doesn't seem worth it - as compared to investing in a global PIE fund that tracks an index.

Any specific PIR funds you'd recommend?

ASB have updated.2CC.

52 week high $0.930 52 week low $0.260
Dividend CPS 8.32 Dividend yield (Net) 9.24%
EPS 13.70 P/E ratio (Adjusted) 6.57
NTA 44.00
Market capitalisation $40,999,050.00

Low PE ratio
high NET dividend yield.

OUTLOOK
FOR FY25
With the transformation now complete, the
Company's focus remains on delivering gross
margin over market share, continuous BAU
improvement and profitable, sustainable
growth through its property strategy.
The property strategy is a key growth factor
for 2 Cheap Cars, with positive steps being
taken to identify and develop new or better
retail locations which benefit its scale model,
particularly in Auckland.
2 Cheap Cars has a very clear value proposition
and strategy that compares favourably to
many competitors, particularly in the prevailing
economic environment. Having said that,
market conditions and foreign exchange rates
remain unpredictable and are – as always –
beyond any Company's control.Affordable cars are a necessity, and we are
confident the Company is well positioned to
take advantage of increases in immigration and
the more general consumer flight to cheaper
vehicles. However, the business is under no
illusion that to remain profitable it must
continue to be vigilant and diligent with costcutting and supply chain efficiencies.
Assuming favourable supply, currency and
trading conditions, NPAT is expected to
remain steady in FY25 by focusing on gross
margin expansion, prudent cost management,
increasing direct control of the value chain and
sensible expansion in Auckland.

Look forward to the "sensible expansion in Auckland."

Interesting.  Pretty much TRA's goal as well.  If you can't go forward with the prevailing economic headwinds the name of the game is to not go backwards.  Many other companies on the NZX would do well to have the same goal.

2CC's 8th Auckland site;

Wairau Road GRAND OPENING ⚡



Come check us out at our GRAND OPENING this weekend only — 98 Wairau Road, Wairau Valley! We've got a fleet of cool rides for you to check out, FREE sausage sizzle and HEAPS of cool prizes* to be won on our spinning wheel!



Come down and see us from 10am — 6pm, this weekend only!

2CC CEO to MOVE on

https://www.nzx.com/announcements/436244

David Sena took over the 2CC CEO role on 1st June 2024.

Quote from: Bev on Aug 16, 2024, 12:27 PMDavid Sena took over the 2CC CEO role on 1st June 2024.

Hmm - all in the family.

Looking into the past am I wondering what this means for minority share holders? They better hope that Davids agenda happens to be aligned with theirs ...

Anyway - 2 hot 4 me ...

Ticks all the boxes for me.
Buy   $0.870         Sell   $0.890
Open   $0.870         Previous close**   $0.870
Volume   11,564         Turnover   $10,060
Day high   $0.870         Day low   $0.870
52 week high   $0.930         52 week low   $0.445
Dividend CPS   8.32         Dividend yield (Net)   9.56%
EPS   13.70         P/E ratio (Adjusted)   6.35
NTA   44.00            
Market capitalisation   $39,632,415.00

Paul Millward did a great job at 2CC.
Looked to follow him,but too much red ink at MOV for me.
I like companies such as 2CC which have no debt,modest ratios and pay great fully imputed divies.
Having the major shareholder in the driver's seat is a massive plus for me.

Tougher market conditions;
We have increasing control of the value chain at our Auckland hub and some exciting property developments to be announced shortly when finalised. While it's a tough trading environment for many New Zealand businesses right now, we are working hard to ensure we deliver steady net profit after tax (NPAT)," he said.

https://www.nzx.com/announcements/436780

Are the wheels falling off?

Quote from: LoungeLizard on Aug 26, 2024, 09:40 AMAre the wheels falling off?

Bit of a shock that announcement

Wonder if insurance covers loss of profit or covers costs because of that impending land slip sliding away

Quote from: LoungeLizard on Aug 26, 2024, 09:40 AMAre the wheels falling off?

The share price has fallen 4 cents or 4.4% so the market thinks they have.

We have increasing control of the value chain at our Auckland hub and some exciting property developments to be announced shortly when finalised.

Does not indicate further downgrades to me.



ps.I have been buying today.

Very modest ratios.
Little or no debt.
Latest share price $0.860    as at 11:15:40, Monday 26 August, 2024 (NZT)
Buy   $0.850         Sell   $0.880
Open   $0.880         Previous close**   $0.900
Volume   24,581         Turnover   $21,341
Day high   $0.880         Day low   $0.860
52 week high   $0.930         52 week low   $0.460
Dividend CPS   8.32         Dividend yield (Net)   9.67%
EPS   13.70         P/E ratio (Adjusted)   6.28
NTA   44.00            
Market capitalisation   $39,176,870.00

I agree and what I also found very encouraging when I talked to David Sena (CEO) at a AGM that he seems very hardworking and passionate about the business and humble towards other shareholders.
Qualities which I like in a CEO.

Company downgrades expectations.....next yrs NPAT now not expected to reach FY24 levels.

https://www.nzx.com/announcements/438294

I see Turners' car sales are up while 2CC's are down.
I expect this is because of the very high % of 2CC's sales were electric and hybrid.,which are not so popular now days.
It will take a lot for 2CC get their sales of petrol cars to fill the loss of electric and hybrid sales.
However I still think 2cc's ratios are still very modest and their balance sheet must be the strongest of any NZ listed company.

Look forward to the agm on the 27th to hear more details of;
"The Company remains confident that initiatives planned for the second half year will improve
NPAT compared to the first half."
 

Quote from: Left Field on Sep 19, 2024, 10:23 AMCompany downgrades expectations.....next yrs NPAT now not expected to reach FY24 levels.

https://www.nzx.com/announcements/438294

Quite a difference to what Turners told us yesterday.

Turners eating their lunch?

Quote from: BlackPeter on Sep 19, 2024, 11:41 AMQuite a difference to what Turners told us yesterday.

Tina eating their lunch?

Fixed that for ya mate lol

Does Tina have a sister.?.......................................................lol.

Hmmmmmmmmmmm.
TRA up  1.1% today.
2CC up 2.7% today.

Quote from: lorraina on Sep 19, 2024, 02:00 PMDoes Tina have a sister.?.......................................................lol.

Hmmmmmmmmmmm.
TRA up  1.1% today.
2CC up 2.7% today.

Cheap up as a sign of relief they aren't in the crap good and proper and things will be OK nextbyear

At the end of the day.
TRA up 1.8%
2CC down 4.1%

Quote from: lorraina on Sep 19, 2024, 05:02 PMAt the end of the day.
TRA up 1.8%
2CC down 4.1%

clearly - Tina had a late lunch; Probably just working too hard :).

FY25 OUTLOOK
Despite the headwinds we have experienced in the first five months of trading, 2CC is
encouraged by several factors already in play that we anticipate will gain traction in the
second half.
From an external perspective, the impact of interest rate cuts is expected to begin trickling
through to our customers, alleviating some financial strain they face and improving their
ability to secure finance. This should help support an eventual recovery in demand, reduce
pricing pressures, and improve finance penetration rates.
Within the business, our ongoing focus on enhancing operational efficiencies and expanding
in-house capabilities, along with our Auckland expansion plans, are expected to improve
profitability.
We anticipate a trading uptick as the new Botany site becomes fully operational and the
new Greenlane flagship opens. Additionally, the NZ dollar is expected to remain strong
against the Japanese Yen. These factors, combined with expanding in-house compliance and
panel and paint initiatives, will help contain vehicle costs and improve margins.
Affordable cars are a necessity, so while we anticipate weak market conditions persisting
and immigration numbers to reduce, there are genuine reasons for optimism in the medium
term.
I look forward to reporting on our progress later in the year when we deliver our half-year
results. I

With regard to dividends, the Board makes final decisions only once results are approved at
the half and full year, in accordance with our dividend policy of paying 50% to 60% of NPAT
and acting prudently based on information available at that time.
However, based on our current trading performance, we do anticipate paying a dividend,
albeit less than in FY24. If there are any changes to that expectation, we will update the
market.

Tougher trading.
2CC remain profitable and paying a reasonable divie on 6th December..[approx 2.2cents net per share]
Balance sheet in excellent shape, and as well as holding a higher stock level than I expected they also hold $ 2.5mil cash.
Cash flow from operations remains positive.
Stock holding is $13.1 mil ..I did expect this to be around $10 to $11mil.
However the higher stock level will cover the further expansion in the Auckland market.

I think only a modest part of this, approx. halving of profits, is attributable to tougher economic conditions which were really only just as tough last year.  Any objective analysis of the year-on-year change must consider the effect of the withdrawn of incentives on second hand EV's, PHEV's and hybrids.  I and BP have warned about this some time back, see posts 48 and 70.   Good luck to holders.

Yes are caught overstocked with hybrids.
That would explain why their stock level has not reduced as I thought it would,and why their margin is lower as they try to clear the hybrid stock.
Of the 763 total number of cars listed for sale 388 are Hybrids.So some way to go yet.
I expect they are concentrating on getting their stock balance under control.What level that will be I would  guess down from just over 50% to between 20% and 25%.Therefore the number they hold needs to be halved. ie sell about 32 a month,compared with 700  cars they will sell a month over the next 6 months.
Achievable?.Yes.
I must admit if I was looking to replace my Nissan I would buy a hybrid.

Quote from: lorraina on Nov 15, 2024, 11:51 AMI must admit if I was looking to replace my Nissan I would buy a hybrid.

Speaking of Nissan and hybrid, these are a really good hybrid vehicle.  Ask me how I know. ;)
https://www.youtube.com/watch?v=PpK7Fv_QNd0&t=41s

Some pretty big discounts in the EV space ...have we reached the bottom yet ?
 From an email this week ..
"You can now own the impressive 2022 Car of the Year, Hyundai IONIQ 5 EV, from only $44,990 + ORC. No, we're not kidding, while stocks last you can save a whopping $35k on a Hyundai IONIQ 5 100% EV 58 kWh."

Yes, big discounts on all EVs.

Ford selling brand new pre-registered Mustang Mach e from $45k, $55K(AWD) and $65k(GT), almost 50% from peak😊.

My goodness, the whole EV market is a bloodbath.  Very pleased Todd Hunter warned me off them saying you'll get absolutely taken to the cleaners with really extreme levels of depreciation.

Quote from: lorraina on Nov 15, 2024, 11:51 AMYes are caught overstocked with hybrids.
That would explain why their stock level has not reduced as I thought it would,and why their margin is lower as they try to clear the hybrid stock.
Of the 763 total number of cars listed for sale 388 are Hybrids.So some way to go yet.
I expect they are concentrating on getting their stock balance under control.What level that will be I would  guess down from just over 50% to between 20% and 25%.Therefore the number they hold needs to be halved. ie sell about 32 a month,compared with 700  cars they will sell a month over the next 6 months.
Achievable?.Yes.
I must admit if I was looking to replace my Nissan I would buy a hybrid.

Other posters references to the EV market and massive discounts etc is true for the EV market (new or used), but it's not relevant to 2CC who have NO EV's for sale. They do have 368 Hybrids for sale nationwide and many of them are discounted around $300-$500.

I don't think it is relevant to compare the wider EV market with 2CC's electric assisted vehicles that are focused solely on Hybrids, with NO EV's in stock.

I am having a lot of fun watching 2CC's site and noting all vehicles for sale and EVs for sale.

On 15th they had all vehicles 763..Today 706.

Evs they had 388 today 368

When they bring on their 2 new sites [70 and 150] they should have 220 extra cars for sale.

That is over 25% more cars for sale..I expect the super site will enjoy super sales.

If they can attract more finance and insurance add ons, the net profit should improve substantially,as their head office and compliance/logistics should not increase a lot,as servicing extra Auckland branches will  not come at a great cost..

Hey all, long time lurker, so long overdue contributing!

From 9th April 2025, and to meet their commitment of zero emmisions by 2040, Uber NZ are disqualifying all hybrids from "green" trip eligibility. Will only be able to operate as Uber X.

I suspect this may have a small impact on uptake of hybrids for use on the Uber platform at least. Nice of them to give a whole 5 months notice, with 14 years left to run to their self imposed deadline!! 

Quote from: Buzz on Nov 18, 2024, 11:13 AMOther posters references to the EV market and massive discounts etc is true for the EV market (new or used), but it's not relevant to 2CC who have NO EV's for sale. They do have 368 Hybrids for sale nationwide and many of them are discounted around $300-$500.

Fair comment apart from the trickledown effect.  Complete bloodbath in EV's and PHEV's means some trickledown market effect / price pressure on hybrids.

Quote from: lorraina on Nov 18, 2024, 11:38 AMI am having a lot of fun watching 2CC's site and noting all vehicles for sale and EVs for sale.

On 15th they had all vehicles 763..Today 706.

Evs they had 388 today 368

When they bring on their 2 new sites [70 and 150] they should have 220 extra cars for sale.

That is over 25% more cars for sale..I expect the super site will enjoy super sales.

If they can attract more finance and insurance add ons, the net profit should improve substantially,as their head office and compliance/logistics should not increase a lot,as servicing extra Auckland branches will  not come at a great cost..

I have spent most of the week watching 2CC trying to build up their number of cars for sale.
Monday morning they had 736 cars for sale.The highest number was 790 at lunch time today.
Trouble is people buying cars makes it hard for them to build up the number for sale............[lol].

From TRA today;
Q3 Update

• Auto retail: Vehicle pricing strengthening and vehicle margins improving.


I expect 2CC will be seeing the market improving too.

Turners October report showed dealer to public sales across all second hand dealerships up 11%

Granddaughter recently had her car stolen.
The insurance company wrote it off.
I sent her details of cars Turners and 2CC had for sale.
She decided on a Subaru hybrid at 2CC.
Christchurch manager Kaz was very helpful.
The presentation of car was excellent.
Drives like a new car.
Granddaughter is happy,and so am I as a shareholder. 

Things moving in the right direction....

2 Cheap Cars secures new finance facility with ANZ Bank


2 Cheap Cars Group Limited (NZX:2CC) is pleased to announce the execution of a new finance facility with its primary transactional banking partner, ANZ Bank.

Under this facility agreement, the Company has secured competitively priced working capital finance, including a new NZD$5.0 million trade finance loan and a NZD$1.0 million commercial flexi facility.

CEO David Sena described these arrangements as a significant milestone for the Company, supporting both inventory purchases and operational growth.

"This new finance arrangement with ANZ strengthens our banking relationships and provides access to well-priced capital. Importantly, it positions us to confidently drive our operational expansion," he said.

Trading update

The sustained economic downturn, including persistent market volatility, has continued to impact profitability into the fourth quarter of FY25. While the company is still projecting FY25 net profit after tax (NPAT) to exceed NZ$3m, it notes that the favourable impact of carbon credits carried forward from prior years will contribute to that result.

"While the trading environment remains challenging, there are plenty of reasons for optimism, including our strong financial position. We have optimal stock levels, our prominent new site at Greenlane is set to open soon, and we are hopeful that declining interest rates will improve customers' access to finance," Mr. Sena said.

2CC has been thinly traded,so I am pleased to see some good buying support ahead of their result later this month.
Buyers
Buy Quantity
Prices
15   195,445   $0.720
4   3,249   $0.710
3   6,103   $0.700
1   20   $0.600
1   20   $0.550
       
       
24   204,837   
Prices
Sell Quantity
Sellers
$0.740   19,578   1
$0.750   2,652   2
$0.770   36,102   1
$0.800   481   1
$0.890   349   1
$0.900   1,076   1
$1.000   6,878   3
67,116   10

And so it came to pass that it was a fun day for 2CC shareholders today.Up 5 cents with good buyer demand .

Last
Change
Buy
Sell
Open
High
Low
VWAP
Volume
Turnover
$0.770
5*  6.9%   
$0.770
$0.800
$0.740
$0.770
$0.740
$0.759
58,388
$44,316
Buyers
Buy Quantity
Prices
1   78,682   $0.770
2   50,013   $0.730
1   21   $0.720
4   2,834   $0.710
3   6,103   $0.700
1   20   $0.600
1   20   $0.550
13   137,693   
Prices
Sell Quantity
Sellers
$0.800   481   1
$0.890   349   1
$0.900   1,076   1
$1.000   6,878   3

Quote from: lorraina on May 07, 2025, 06:03 PMAnd so it came to pass that it was a fun day for 2CC shareholders today.Up 5 cents with good buyer demand

Were you the buyer?

No.I am currently neither a buyer nor a seller.

Big lack of sellers.
Buyers
Buy Quantity
Prices
2   72,862   $0.770
2   50,013   $0.730
1   21   $0.720
4   2,834   $0.710
2   3,603   $0.700
1   20   $0.600
1   20   $0.550
13   129,373   
Prices
Sell Quantity
Sellers
$0.770   3   1
$0.800   481   1
$0.860   850   1
$0.890   349   1
$0.900   1,076   1
$1.000   6,878   3
       
9,637   8

Mate, we can all see the depth for ourselves. Can you share some insights on where you see eps this year and next year ?

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

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.

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

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

The word down appears 7 times.

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.

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.

Quote from: lorraina on Jun 27, 2025, 09:12 AMInteresting 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.

Quote from: lorraina on Jun 27, 2025, 09:12 AMI 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.

Quote from: Dolcile on Jun 27, 2025, 09:54 AMObviously 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.

Quote from: Dolcile on Jun 27, 2025, 10:01 AMJust 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
 

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%..

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

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

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.

LOL, That's going back quite a few years mate. Turners has two distinct era's. Before Tina, and after Tina.  The brilliance of that marketing campaign has been completely transformative.
 

The ground work was laid well before Tina's arrival.
ie Deciding to move more to retail rather than wholesale, and better positioning their sites for retail.
Their 3 new sites in Christchurch are a continuation of this wise policy.
Will be interesting seeing how well 2CC develop their new super site at Sylvia Park.
This could be 2CC's "game changer".

[xxxxxxxxxxxxxxxx

Quote from: lorraina on Jul 23, 2025, 05:54 PMps.Can you name a NZ listed company that has a stronger balance sheet than 2CC's.

Two spring immediately to mind, (I am sure there are plenty more) and I own plenty of both.  Neither have any debt.  MCK and HLG.
A PE of 9 for 2CC seems quite high to me for a market minnow with its somewhat patchy track record, sorry mate, I'm just calling it as I see it.  Wishing you all the best with it though.

I guess the question is whether the recent $3.3m npat is bottom of the cycle and they can get closer to the $6m the year before on a steady state?

Quote from: Basil on Jul 23, 2025, 06:10 PMTwo spring immediately to mind, (I am sure there are plenty more) and I own plenty of both.  Neither have any debt.  MCK and HLG.
A PE of 9 for 2CC seems quite high to me for a market minnow with its somewhat patchy track record, sorry mate, I'm just calling it as I see it.  Wishing you all the best with it though.

Agree with your HLG ,however I doubt the major shareholder of MCK will share the "rewards".
Interesting that HLG's equity ratio is 47.12% while 2CC;s is 61.58%.
"Not a lot of people know that."

Quote from: Dolcile on Jul 23, 2025, 06:14 PMI guess the question is whether the recent $3.3m npat is bottom of the cycle and they can get closer to the $6m the year before on a steady state?

That certainly is the $64,000 question mate.  For mine, the ~ $6m was earned with very strong tailwinds from Government incentives on EV's, PHEV's and hybrids and all of those incentives are gone.  Competing against the marketing and management brilliance of Turners and their used car market intelligence is going to be hard work for all used car dealers is how I see it but others will see it differently and that's perfectly fine.  There's plenty of room for as many different opinions as there are car dealers  ;)   Keep in mind also that the $3.3m was generated with the tailwind of a net $600K of carbon credits from the previous year, which presumably is not repeating, so was really a normalized net profit after tax of circa $2.9m.  Extract from annual result follows:
"Included in the FY25 revenue is $1.7m related to carbon
credits generated and retained in prior reporting periods, but not previously
recognised due to uncertainty regarding their realisation. At the gross
margin level, this revenue is partially offset by $1.1m of carbon credit
costs associated with net credits attached to vehicles sold during FY25".

Quote from: lorraina on Jul 23, 2025, 06:18 PMAgree with your HLG ,however I doubt the major shareholder of MCK will share the "rewards".

MCK - I think there's a very good chance of a significantly improved takeover offer in 2026.  Their stand-still agreement to not make another higher offer expires in late January 2026.  Less than a year ago they held just a fraction over 70%, now ~ 86% after the recent takeover attempt...they only need another 4% to get to compulsory acquisition.  Its game on early next year I reckon.  Disc: I have been very quietly hoovering up more MCK shares.

I hope you are right,but with just 4% required I can not see them being generous.
It is not in their nature.

Quote from: lorraina on Jul 23, 2025, 06:35 PMI hope you are right,but with just 4% required I can not see them being generous.
It is not in their nature.

I agree its going to be interesting.  Crackity and I had an interesting discussion with ACC's head of equities at the annual meeting and some interesting follow up correspondence and we've all applied a fair degree of intellectual horsepower to this.  There's quite a lot of complexity around this that I won't go into on here in any great detail but in brief getting to quite a bit higher than 90% is likely to be CDL hotels objective. Assuming they make another offer they will want to get price agreement from at least half, 8% or more of the remaining minority shareholders, i.e. a lock up price agreement to get to 94% before making their next takeover offer.  Doing it that way closes the gate on any chance of remaining minority shareholders having any price appeal rights under the compulsory takeover code provisions.   We know that and I am sure CDL Hotels know that and will want price certainty.   We know they will want price certainty and if I am in any way involved, will use that fact in negotiations.  There is likely to be some interesting discussions and negotiations going on behind the scenes between ACC and other key shareholders and CDL Hotels later this year or early next year, in my opinion.  I'd like the new takeover price to start with a "4" and make that clear to ACC head of equities but accept ultimately he is the kingmaker and between him and CDL hotels, they will set the price.  About half way between the absurdly low $2.80 offer and the independent valuer's report, (2.80 + $4.70) / 2 = $3.75, adjusted for earnings during calendar year 2025, say 20 cps = $3.95 wouldn't surprise me.  More would be nice, we will see.

I do not see your name here...lo.

Total Number of Shares:105578290 Extensive Shareholding:Yes
Shareholders in Allocation:
Allocation 1:74743077 shares (70.79%)
 
 CDL HOTELS HOLDINGS NEW ZEALAND LIMITED
 Floor 7, 23 Customs Street East, Auckland Central, Auckland, 1010 , New Zealand
Allocation 2:5428319 shares (5.14%)
 
 BNP PARIBAS NOMINEES (NZ) LIMITED
 Bell Gully, Deloitte Centre, Level 5, 1 Queen Street, Auckland, 1010 , New Zealand
Allocation 3:4693469 shares (4.45%)
 
 ACCIDENT COMPENSATION CORPORATION
 81 -83 Molesworth Street, Wellington ,
Allocation 4:4375571 shares (4.14%)
 
 CITIBANK NOMINEES (NEW ZEALAND) LIMITED
 Citgroup Center, Level 11, 23 Customs Street East, Auckland, 1010 , New Zealand
Allocation 5:3527356 shares (3.34%)
 
 HSBC NOMINEES (NEW ZEALAND) LIMITED
 188 Quay Street, Auckland Central, Auckland, 1010 , New Zealand
Allocation 6:1292150 shares (1.22%)
 
 JP Morgan Chase Bank NA NZ Branch
 Level 13, 2 Hunter Street, Wellington, 6140 , New Zealand
Allocation 7:906000 shares (0.86%)
 
 Leng Beng KWEK
 12 Tanglin Hill, Singapore ,
Allocation 8:636135 shares (0.60%)
 
 NZX WT NOMINEES LIMITED
 Nzx Wealth Technologies Limited, Unit 1 Level 3 260 Oteha Valley Road, Albany, Auckland, 0632 , New Zealand
Allocation 9:549242 shares (0.52%)
 
 NEW ZEALAND DEPOSITORY NOMINEE LIMITED
 Level 2, Nzx Centre, 11 Cable Street, Wellington, 6011 , New Zealand
Allocation 10:475251 shares (0.45%)
 
 Kay Hong CHIAM
 11 Venus Road, Singapore, 574299 , Singapore
Allocation 11:463297 shares (0.44%)
 
 MFL MUTUAL FUND LIMITED
 Dunne Consulting Group Limited, Level 1, 41 Taharoto Rd, Takapuna, Auckland, 0622 , New Zealand
Historic data for shareholders

That's a very old substantial shareholding list lol.    Have a look in next years annual report at the top 20 shareholders, assuming the company is still listed on the NZX then.

Often the way with NZ Companies office.

Quote from: lorraina on Jul 23, 2025, 05:00 PMSome 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%..

 2CC's very high equity ratio,means they are "well positioned" to finance their "super sit" at Syliva Park opening in August,[and any further expansion] with out calling on shareholders for more capital.

Quote from: Basil on Jul 23, 2025, 06:22 PMThat certainly is the $64,000 question mate.  For mine, the ~ $6m was earned with very strong tailwinds from Government incentives on EV's, PHEV's and hybrids and all of those incentives are gone.  Competing against the marketing and management brilliance of Turners and their used car market intelligence is going to be hard work for all used car dealers is how I see it but others will see it differently and that's perfectly fine.  There's plenty of room for as many different opinions as there are car dealers  ;)   Keep in mind also that the $3.3m was generated with the tailwind of a net $600K of carbon credits from the previous year, which presumably is not repeating, so was really a normalized net profit after tax of circa $2.9m.  Extract from annual result follows:
"Included in the FY25 revenue is $1.7m related to carbon
credits generated and retained in prior reporting periods, but not previously
recognised due to uncertainty regarding their realisation. At the gross
margin level, this revenue is partially offset by $1.1m of carbon credit
costs associated with net credits attached to vehicles sold during FY25".

So after tax we are talking about roughly $430k of NPAT that was "abnormal". So 2CC is trading at about 10.4x FY25 earnings.

I am buoyed by both CMO and TRA reporting an uplift in sales.
2CC's agm will be held in late September,and their outlook will be important,
At that time they will have started trading at their new super site at Sylvia Park.
I am expecting this new site will see 2CC's sales improve between 20% and 30%.
Off course the higher sales will also see commission revenue from finance and insurance increase.
2CC have an Auckland base for their compliance and logistics,so those costs as a % of sales will not increase greatly.
I am confident Sylvia Park will be a great success and expect 2CC will look at the prospects of a super site on the North Shore,to compliment  their already two sites there.
2CC has the financial capacity to do this without coming back to shareholders for more capital

2 Cheap Cars Group Updates Performance Outlook for FY26

2 Cheap Cars Group Limited (NZX:2CC) today announced an update on its performance outlook for the 2026 financial year.
While vehicle sales still are projected to exceed FY25 levels, the company does not anticipate FY26 net profit after tax (NPAT) reaching the previous year's level, based on first quarter results.

The first quarter of FY26 saw performance below expectations, with both sales volumes and gross margins falling short of budgeted targets. The company successfully achieved cost savings, however these were not sufficient to fully offset the decline in gross margin.

The company has seen an improvement in sales performance in July and expects to exceed its monthly budget for the first time this financial year. However, the market remains uncertain and inconsistent.

As 2 Cheap Cars advances its vertical integration strategy, including expanding its internal reconditioning capabilities, there are short-term pressures on both its supply chain and workforce. As a result, maintaining optimal inventory levels across the network has become a challenge.

Measures are currently being implemented that are expected to increase car acquisition and boost reconditioning throughput. These initiatives include refining the operational structure, upskilling staff, and using reliable external partners to maintain throughput and flexibility while vehicle volumes exceed internal capacity.

The company's new flagship site at Clemow Drive, Sylvia Park, remains on schedule to open in August 2025 and is expected to boost performance in the second half of FY26.

While the Company's strategic direction remains unchanged, there is additional emphasis on enhancing supply chain responsiveness. This will assist the company to take advantage of opportunities in the market as it improves.

[ends]

Is that a profit downgrade lorriana

Guidance for FY26 has gone from 'uncertain' a few months ago to probably less than last year

So NPAT of $6.2m in F24 down to $3.2m in F25 to something less in F26 ...not going in right direction

Suppose one needs to keep the faith in these 'uncertain' times

Jeez, gross margin (exc the carbon credits) was down about 5% points in F25

Margins still declining they say .....so getting desperate?

"Short term  supply pressures" will need to be fixed quickly as I expect Sylvia Park site will add between 20% and 30% to their total sales,when it opens in August.
Winter sales are usually weak so the new "super site" is opening at the right time.
Looks as though 2CC are following Turners by sourcing more cars locally,yet I did think sourcing from Japan meant you could buy what cars customers wanted rather than just having to make the most of what you were offered in NZ..

How many cars do 2CC sell in a year?

QuoteKeep in mind also that the $3.3m was generated with the tailwind of a net $600K of carbon credits from the previous year, which presumably is not repeating, so was really a normalized net profit after tax of circa $2.9m.  Extract from annual result follows:
"Included in the FY25 revenue is $1.7m related to carbon
credits generated and retained in prior reporting periods, but not previously
recognised due to uncertainty regarding their realisation. At the gross
margin level, this revenue is partially offset by $1.1m of carbon credit
costs associated with net credits attached to vehicles sold during FY25".

So Sylvia park (with all the costs that go with an expensive large site like that, that nobody is talking about) is unlikely to plug the gap from the non-recurring carbon credit tailwind they got last year.  That despite interest rates forecast to be about 200 bps lower over FY26 than FY25 and Turners saying overall market stat's of dealer to public sales rising significantly in early FY26.  Hmmm...make of that what you will.

2CC have said a few times that sales volumes are linked immigration

Net migration year March 23 was 74k, to March 24 was 100k and to March 25 was 26k

Yes, sales are linked to immigration

Since March annual number has fallen to 15k as at May

No wonder 2CC struggling big time ...their customer base declining

Better keep an eye on those monthly migration releases from Stats NZ

Or get your local MP to push for more migration

Hmmmmm.?
Need the following immigrants.
panel beaters
spray painters
 mechanics

Google Buyer Ratings today confirms the excellent service my granddaughter experienced recently when she bought a lovely car from 2CC Christchurch.

"Overall, 2 Cheap Cars seems to be a popular choice for car buyers in New Zealand, with a strong focus on customer service and a high percentage of satisfied customers."

Market Close report madevannnteresting observation

2 Cheap Cars Group shares were down 1.56% to 63 cents after it told the market that while it expects vehicle sales to exceed those in 2025, it anticipates net profit after tax (Npat) to fall year-on-year.

Goodson pointed out that the guidance contrasted with an update from The Colonial Motor Company last week, in which it signalled "pockets" of recovery in the "wider vehicle market".

Suppose Mr Goodson didn't consider that Golden Visa dudes or whatever they are called go for new cars while run if the mill immigrants just want a set of wheels

Goodson may have a point here;
He put this down to 2 Cheap Cars being highly exposed to Auckland, where economic recovery has been slower.

I think they said that volumes in last quarter were below budget. Did they mention v last year?

Whatever you can't say number of sales is growing ....or even looking healthy

Here are the sales numbers for the last few half year periods -

Sept-20   3,911
Mar-21    4,296
Sept-21   3,864
Mar-22    4,018
Sept-22   4,281
Mar-23    4,080
Sept-23   3,776
Mar-24    4,393
Sept-24   4,119
Mar-25    3,556

Real worry is that Oct24/Mar25 (the last half year) sales were down 19% on the pcp. Full year sales were down 6% and that's not inspiring either

Industry data shows that Dealer to Public sales Jan to June are >10% up on previous year. The Apr/June period up 12% on pcp.

Seems that 2CC being taken to the cleaners in what seems to be a very competitive market (NZ Cheap Cars included)

Along with their other problems I'd be worried if I was management (and a shareholder)

Forgive me for having a morbid fascination with what be an impending train wreck

PS - in FY20 they reported 11,019 car sales ... now running at 7,625 (March 2025). Seems they have closed down some yards

I mentioned NZ Cheap Cars in above post

Some on here berated the NZ Cheap Cars Tiktok campaign that started in May just as social media hype

Over 150,000 followers and millions of likes not too bad for a marketing campaign

And some of the content seems to targeted at immigrants as well

Maybe that's where 2CC customers have gone

Quote from: winner (n) on Jul 30, 2025, 09:39 AMI think they said that volumes in last quarter were below budget. Did they mention v last year?

Whatever you can't say number of sales is growing ....or even looking healthy

Here are the sales numbers for the last few half year periods -

Sept-20   3,911
Mar-21    4,296
Sept-21   3,864
Mar-22    4,018
Sept-22   4,281
Mar-23    4,080
Sept-23   3,776
Mar-24    4,393
Sept-24   4,119
Mar-25    3,556

Real worry is that Oct24/Mar25 (the last half year) sales were down 19% on the pcp. Full year sales were down 6% and that's not inspiring either

Industry data shows that Dealer to Public sales Jan to June are >10% up on previous year. The Apr/June period up 12% on pcp.

Seems that 2CC being taken to the cleaners in what seems to be a very competitive market (NZ Cheap Cars included)

Along with their other problems I'd be worried if I was management (and a shareholder)

Forgive me for having a morbid fascination with what be an impending train wreck

PS - in FY20 they reported 11,019 car sales ... now running at 7,625 (March 2025). Seems they have closed down some yards

This is what they said;
The first quarter of FY26 saw performance below expectations, with both sales volumes and gross margins falling short of budgeted targets. The company successfully achieved cost savings, however these were not sufficient to fully offset the decline in gross margin.

vehicle sales still are projected to exceed FY25 levels,

The company has seen an improvement in sales performance in July and expects to exceed its monthly budget for the first time this financial year.

As 2 Cheap Cars advances its vertical integration strategy, including expanding its internal reconditioning capabilities, there are short-term pressures on both its supply chain and workforce. As a result, maintaining optimal inventory levels across the network has become a challenge.

ie.They know what needs fixing.Now they have to do it.They have the financial capacity to do it..They need to do it quickly as I expect the new Sylvia Park site will see strong sales when it opens shortly.
,

Sorry lorianna - yes they expect to sell more cars in FY26 ... sounds like being forever hopeful to me

If industry data says dealer to public sales volumes are showing double digit growth this year then 2CC last 6 months performance is pretty dreadful (in my opinion for what it's worth)

Never mind ... lets hope their hope eventuates eh

That NZ Cheap Cars that's seems to be doing very well

I didn't realise until now that the former 2CC big wig Eugene Williams is the driving force behind them ..can't be true?

Interesting article on NZ Cheap Cars in Autotalk

CEO says targeting $70m sales in 2025 ...jeez that's more than 2CC ...no wonder they going backwards

Talk of an IPO as well. That'll be interesting

https://autotalk.co.nz/wp-content/uploads/2025/07/autotalk_july25.pdf

Quote from: winner (n) on Jul 30, 2025, 10:31 AMThat NZ Cheap Cars that's seems to be doing very well

I didn't realise until now that the former 2CC big wig Eugene Williams is the driving force behind them ..can't be true?

I started by buying a few 2CC shares at 35 cents,when Eugene Williams started selling his holding. When he dumped a huge number of shares at around 20 cents to 22 cents I pigged out.Bought for myself,the wife and my late friends family trust.
Never sold any,as I think they have [about] the strongest balance sheet of any NZ listed company.

PS If the shares hit 20 cents to 22 cents I will pig out again.

PSs.I also like the fact that over half the vehicles 2CC have for sale are hybrids.

QuoteSLIDE 14 – FY26 YTD
Turning now to YTD trading

In the five months to the 31st of August, we sold 3,058 vehicles, down 12% on the prior
year.

Revenue declined 5% to $33.4 million, reflecting lower sales volumes, partially offset by
improved retail prices and stronger finance and insurance penetration.

Finance penetration rose to 31%, up four percentage points, and average insurance
penetration reached 40%. These gains reflect both the benefit of lower interest rates and
the strong efforts of our sales staff.

Gross margin eased by two percentage points to 19%, primarily due to the carbon tax
impact. Net profit after tax was $0.8 million, down $0.7 million on the prior year. Again, it is
important to note that the carbon tax contributed $0.5 million to this decline.

Operating cash flow was $1.5 million, compared with $0.1 million last year, though this
improvement primarily reflects lower provisional tax payments rather than underlying
trading.

Very tough trading conditions it seems.

Outlook
Our Greenlane and Sylvia Park sites are now fully operational and expected to ramp up sales
as they establish themselves. Lower interest rates are improving affordability, while a strong
New Zealand dollar is helping to mitigate cost pressures. Local purchasing is also becoming a
more significant part of our sourcing strategy.
Despite challenges such as the carbon tax, subdued immigration, and increased competition
for Japanese stock, we remain confident in our ability to deliver improved performance over
the medium term. Higher finance and insurance penetration, fully operational new sites,
and stronger in-house capabilities support this view.

At least H126 volume sales decline of say 10% v pcp is less worse than the 19% decline v pcp in H225

Hope that that outlook has some substance / credibilty

2CC Group Interim results for Half Year 2026
13/11/2025, 08:30 NZDT, HALFYR
13 November 2025
Market announcement
NZX:2CC

Interim dividend declared despite challenging market conditions

2 Cheap Cars Group Limited (NZX:2CC) has reported net profit after tax (NPAT) of $1.01m for the half year ended 30 September 2025 (HY26), down from $1.67m in HY25.

Summary of key results
(Figures quoted are in NZ dollars; comparisons are made against HY25)

• Revenue and income: $39.77 million down from $42.01 million
• Gross margin YTD: $7.86 million, down from $9.06 million
• Underlying EBITDA (including finance income): $3.1 million, down from $3.8 million
• Net profit after tax (NPAT): $1.01 million, down from $1.67 million
• Underlying earnings per share (EPS): 2.2 cents per share vs 3.7 cps
• Vehicle sales: 3,604 units, down 13%

Performance overview

The first half of FY26 was challenging, with continued economic weakness, margin pressure, low immigration numbers and high regulatory costs directly impacting the used-vehicle industry, and the cost-of-living crisis weighing heavily on consumer confidence.

These conditions saw revenue decline 5% to $39.8 million in the first half of FY26, reflecting lower sales volumes. This was partially offset by improved retail pricing and stronger finance and insurance penetration. Finance penetration rose to 32%, up five percentage points, while insurance penetration reached 41%, supported by lower interest rates and effective sales execution.

Gross margin decreased by two percentage points to 19%, primarily due to the impact of carbon tax costs under the Clean Car Standard. The $0.7 million decrease in NPAT primarily reflected the $0.7 million after-tax impact of the Clean Car Standard, as other favourable and unfavourable movements largely offset each other.

However, the Group continues to maintain a strong balance sheet, with $4.6 million in cash, stable debt levels, and inventory carefully managed to align with current demand.

Market overview

Weak economic growth, subdued consumer confidence, and a significant reduction in net migration collectively reduced imported used vehicle sales volumes in HY26.

The Clean Car Standard, has exacerbated this situation through increased complexity and costs for used vehicle importers due to shifting compliance thresholds and rising carbon credit costs.

While overall trading conditions remain subdued, several external factors have provided partial offsets. Lower interest rates are improving vehicle affordability through reduced finance costs, while a strong New Zealand dollar against the Japanese yen has supported more favourable import pricing. There is, however, significant international competition for late-model, fuel-efficient Japanese vehicles that is continuing to drive up procurement costs and tighten supply.

The Company is also beginning to benefit from increased local sourcing opportunities through direct purchases from the public, alongside trade-ins, which, while still a small fraction of total purchases, help to reduce exposure to carbon credit obligations and support a more balanced inventory mix.

Strategic update

In response to the continued difficult market conditions, the Company has made several operational adjustments to enhance flexibility and strengthen long-term capability. A senior Brand and Marketing Manager is being recruited to accelerate investment in direct-to-consumer channels and reinforce brand positioning.

And to reinforce the Company's ability to source consistent supplies of high-quality, late-model vehicles, 2 Cheap Cars CEO David Sena is increasing his direct involvement and time on the ground in Japan to strengthen the capability of the local procurement team.

As vehicle volumes remain volatile, the Company has reassessed its compliance insourcing strategy and reverted to a hybrid compliance model, combining in-house expertise with selected outsourced suppliers to avoid unnecessary overheads and improve capacity management and responsiveness.

Dividend

The Board has declared a HY26 interim dividend of 2.15 cents per share (gross), representing 70% of the underlying NPAT for the period. The record date for the dividend is 21 November 2025, with payment scheduled for 5 December 2025. This decision reflects the Group's commitment to delivering shareholder value while maintaining prudent financial management.

Outlook

Market conditions are expected to remain challenging through the second half of FY26.

While 2 Cheap Cars will likely benefit from easing interest rates and the contribution from new flagship dealerships, these positives are being outweighed by the broader economic and regulatory environment. The pace of recovery in demand is expected to remain gradual, and trading in the second half of FY26 is not anticipated to materially exceed the first half. The Group continues to expect full-year profitability to be lower than FY25, reflecting the ongoing cost and volume pressures across the sector.

Chairman Michael Stiassny noted that while the business is performing solidly, the impact of Clean Car Standard compliance costs was not to be underestimated.

"As recently highlighted by the Imported Motor Vehicle Industry Association, the Clean Car Standard is creating an unintended consequence whereby increasing compliance costs are making used imported vehicles unaffordable for many households who are then forced to retain older, higher-emitting vehicles.

"We continue to control what is within our power to control. The business remains tightly managed, with a disciplined focus on efficiency, cash generation, and balance sheet strength."

The figures included in this announcement are unaudited.

Balance sheet looks very strong and holding dividend. Sitting on a pile of cash 🤑

Guiding to about a full year NPAT of $2m putting 2CC on a PE of about 13x.   Still a bit expensive for me.

Yeah, it is hard to understand. I can only put it down to Turners local sourcing model?

From 2CC's half year accounts.
Net cash flow from operating activities......$2,159 mil
Current Assets ..........$20,796 mil
Current Liabilities.......$5,192 mil
Cash and cash equivalents.$4.577 mil
Equity Ratio 61.92%
Interim dididend 2.15 cps [gross],fully imputed.
Current Market Cap is $26.193 mil

I found this statement should auger well for the future.;

And to reinforce the Company's ability to source consistent supplies of high-quality, late-model
vehicles, 2 Cheap Cars CEO David Sena is increasing his direct involvement and time on the ground
in Japan to strengthen the capability of the local procurement team
As vehicle volumes remain volatile, the Company has reassessed its compliance insourcing strategy
and reverted to a hybrid compliance model, combining in-house expertise with selected outsourced
suppliers to avoid unnecessary overheads and improve capacity management and responsiveness.

These changes will benefit 2CC significantly.;
https://www.beehive.govt.nz/release/easing-cost-new-and-used-imported-vehicles

How bizarre that a basic cheap, pretty fuel efficient vehicle like a Kia Seltos that only burns 7.7 liters per 100 km is taxed nearly $5,000 under the existing scheme as it currently stands !  https://www.kia.co.nz/vehicles/seltos/  I think the Govt are right to kick this whole scheme into touch.

From NZSA's 2CC agm report;
The material financial impact of the Clean Car Standard. Carbon credit costs reached $1.1 million in FY25 and are forecast to exceed $2 million in FY26, directly impacting gross margins, which contracted from 24% to 22%.

The govt changes will widen the selection of cars 2CC will be able to buy,and reduce dramatically 2CC's CCS costs.

Improved momentum into FY26 final quarter

2 Cheap Cars Group (2CC) has delivered an improved trading performance through the latter part of the third quarter and into the early fourth quarter of FY26. This has been underpinned by better vehicle margins and robust finance and insurance (F&I) penetration rates, reflecting the Group's continued focus on operational excellence and customer value.

The recent Government adjustments to carbon credit rates under the Clean Car Standard are further bolstering margins. As inventory accepted under the new settings is sold, these benefits are set to continue, delivering an uplift in margins through the fourth quarter of FY26.

On the back of this improving performance, 2CC now anticipates second-half FY26 net profit after tax (NPAT) to reach or exceed $2.0 million, with full-year FY26 NPAT expected to be at least $3.0 million. These forecasts remain subject to final audit and standard year-end adjustments.

While the Board maintains a prudent stance on the broader economic environment, the Group's recent profitability gains provide momentum as FY26 concludes.

I have 2CC having a PEG in excess of 2 .....hmmmm

Does not look good for their PEG for year ending 31/3/2026.
However, the trading momemtum has returned with a good second half expected after the Govt changes that affected the poor first half,were altered on 1/01/2026.
I expect the year starting 1/4/2026 will see the momentum continue,and the PEG will go back under 1.[Perhaps .6].
I also expect ROE [currently 15.67%] and Gross Dividend yield [currently 8.008 %] will increase too .I am expecting a gross dividend yield of 10 % plus.
We have not yet seen the full results of their updated procurement [Japanese buying] and logistics,adding a lot more cars for them to sell.Still a work in progress.
What has been good to see is their increase in both finance and insurance penetration.
With an excellent web site I am looking forward to seeing stronger marketing from 2CC in future.

An excellent second half after the difficult first half.
• Revenue and income: $81.7m, down 0.3%
• Gross margin: $17.4m, down 2%
• Vehicle sales: 7,239, compared with 7,675 units in FY25
• EBITDA including finance income: $8.1m, up 1%
• Net profit after tax (NPAT): $3.2m, compared with $3.3m in FY25
• Underlying earnings per share (EPS): 7 cents per share (cps), unchanged from FY25
• Final gross dividend: 3.99 cps
• Total FY26 gross dividend: 6.14 cps vs 6.03 cps

Trading update

2 Cheap Cars Group Limited (NZX:2CC) today provided an update on its recent trading performance.

As outlined in the Company's FY26 results announcement (29 May 2026), trading momentum improved materially through the second half of FY26. This was driven by stronger vehicle margins, improved procurement conditions, disciplined cost control and robust finance and insurance penetration rates.

This momentum has continued into the early part of FY27.

The Company recorded net profit after tax (NPAT) of approximately $0.6 million in March 2026, the final month of FY26. Unaudited management accounts for April and May 2026 also each show NPAT of approximately $0.6 million. Trading through the first half of June has remained positive.

The Board considers this recent performance encouraging, particularly when compared with FY26 NPAT of $3.2 million for the full year to 31 March 2026. However, the Board notes that the current trading reflects a short period and may not be representative of the balance of FY27.

The Company is not providing FY27 earnings guidance at this time.

Chairman Michael Stiassny said the recent trading performance reflected the Group's focus on disciplined inventory management, procurement quality, finance and insurance execution, and operating cost control.

"Recent trading has been encouraging, with the business entering FY27 with positive momentum. The Board believes it is appropriate to update the market on the Company's current trading position, however it is too early to extrapolate this performance across the full financial year.

"The operating environment remains unpredictable, and our focus is on maintaining disciplined execution and protecting margins," he said.

The monthly NPAT figures referred to in this announcement are based on management accounts. The March 2026 figure forms part of the Company's audited FY26 result announced on 29 May 2026, while the April and May 2026 figures are unaudited. References to June trading are based on trading information available to date.

Ends

Will be interesting to see how that holds up assuming gas prices normalize. Is this a one off frenzy as people buy more economical cars or something more sustainable. I'm holding but think it is more the former.

Possible reasons for 2CC's improved performance.
Stronger brand and marketing,particularly in digital media,resulting in better results from advertising spend.
Excellent web site....www.2cheapcars.co.nz
David Sena spending more time in Japan with 2CC's buyers,resulting in better procurement.2CC react straight away to changes in consumer requirements.
Better banking arrangements for Japan car buying.
Improved shipping logistics.
Improved compliance,including car preparation for sale, combining in house and out sourced suppliers.
Improved staff training achieving  higher finance and insurance penetration ,resulting in higher commission revenue.
Higher Immigration..[Why this works I do not know.]
Iran War resulted in buyers looking for smaller more economical cars,and hybrids.
Hybrids were  52% to 53% of the cars 2CC had for sale before the war started.This % fell to the low 30s,as hybrid sales took off,and has slowly increased to just over 40% today.
2CC have increased the number of vehicles they have for sale from around 400 in early January to 604 today.ie increase of 51%.
To sum up I think 2CC are providing what the market wants,good quality, reliable,economical vehicles at a fair price.. 
 

Looks good lorriana but worth some caution I reckon in terms of a straight out extrapolation out for the rest of FY27.  The company notes this themselves.

QuoteHowever, the Board notes that the current trading reflects a short period and may not be representative of the balance of FY27.

I know Todd Hunter has noted in tougher times people buy lower value cars so the harshness of the economy during the Middle East conflict could have played right into 2CC hands.  Time will tell.  Best wishes with it.

Always room in the used car market for a dealer selling good cheaper cars.

Doug Drake Motors is located at 281 Ferry Road in Christchurch. We have been in business for over 40 years and are locally owned and operated.

We are committed to providing quality service with a friendly approach to help you find your next vehicle. At Doug Drake Motors we are proud to be an MTA Assured Dealer and specialise in Vehicles under 10k.

And yes I bought the grand daughter's first car from Doug a few years ago.,and her second car from 2CC.Happy with both buys.

2CC's annual report.
A clean simple report makes for good reading.
https://api.nzx.com/public/announcement/475098/attachment/471380/475098-471380.pdf

From 2CC's annual report;
The company
is also exploring further network opportunities to support future
volume growth and customer reach
And
By focusing on bigger, better-located
car yards and digital innovation, we are
confident in our ability to drive improved
sales efficiency, customer satisfaction, and
long-term profitability.

The downside with microcaps, especially where the already minnow market cap is majority owned by a shareholder is the atrocious lack of liquidity.  Almost impossible to build a decent sized position without investing months of time and effort slowing accumulating in one small dribble after another, after another unless you're prepared to radically affect the price with your buying.

Even then if successful, you're locked in with zero liquidity to get out if the narrative changes.
If I think back to my University investment analysis class days which seem like a lifetime ago a chronic lack of liquidity usually demands a ~ 2-3% equity risk premium but my gut instinct says that should be considerably higher in a majority owned situation like this.

I also think with the variability in earnings in recent years its very risky indeed to assume a very small period of successful trading like they've recently enjoyed is in any way a reliable indicator of the future.

Good luck to holders, its not for me.  I am happy with my investment in TRA and don't see the need for further exposure to the sector with 2CC.

TRA is an excellent business.Well managed in a "near" consumer staple sector in NZ ie second hand cars.
A  business that has seen its market cap increase from $75mil to $750 mil since around 2012.
Therefore from below we can see there is a huge difference between them,and 2CC..
TRA you are paying a fair price. for a "solid performer",with good liquidity..
2CC you are buying at very modest ratios,with a very solid shareholders equity,and little or no debt...
 
..........................................TRA......................2cc.
Market cap......................$750mil...................$30mil.
Share price.......................$8.30....................66cents.
NTA..................................$1.96.....................47 cents
Share price times NTA......4,23.x.....................1.4 x
PE ratio.............................18.56......................9.43.
Dividend Yield....................3.98%...................6.70%.
Total Assets.................$1,070,585,000.............$36,345,000.
Shareholders equity......$317,866.,000..............$22,152,000.
Shareholders equity........29.69%.......................60.94%
 Share liquidity..............Strong......................Weak.As per small cap companies when liquidity is there you buy/sell.Not an issue for long term investors.

.

Takeover offer  by Sena at $0.80c......

https://www.nzx.com/announcements/475952

Takeover Notice under Rule 41 of the Takeovers Code - 2CC
13/07/2026, 08:31 NZST, TRANSACT
Sena & Co Limited (Sena & Co) gives notice pursuant to rule 41 of the Takeovers Code that it intends to make a full offer under the Takeovers Code to purchase all of the ordinary shares in 2 Cheap Cars Group Limited (2CC) not already held by Sena & Co.

Offer price is 80 cents per share.

Quote from: lorraina on Jul 13, 2026, 08:42 AMTakeover Notice under Rule 41 of the Takeovers Code - 2CC
13/07/2026, 08:31 NZST, TRANSACT
Sena & Co Limited (Sena & Co) gives notice pursuant to rule 41 of the Takeovers Code that it intends to make a full offer under the Takeovers Code to purchase all of the ordinary shares in 2 Cheap Cars Group Limited (2CC) not already held by Sena & Co.

Offer price is 80 cents per share.

lorraina

Could I please ask your view on the adequacy of the 80c, envisage you might not be a greatly enthusiastic seller, but mindful that you are a long term advocate of the cashflow merits in 2CC so I would genuinely appreciate your perspective?

Discl : smaller % holder in entity from trading levels a year back so personally couldn't complain about 80c

80 cents does appear to be on the lite side.
Like you however I could not complain about it.
I have been told to leave accepting any offer to the last minute,which I will do.
Not rational,however the funds [non taxable profit] would pay off the granddaughter's mortgage and leave us with a substantial amount to reinvest..

Disc wife and I combined hold 2.8% of the company.

Congrats. Tina said she's happy to give you a bigger hug. :)

Well done Lorraina 👍. I'll probably wait for the compulsory purchase once 90% is reached - usually the top price 🤔

Yes early days.
In guess we will see an independent report,etc.

My "fair value" price is $1.20....

Quote from: lorraina on Jul 13, 2026, 09:54 AMYes early days.
In guess we will see an independent report,etc.

My "fair value" price is $1.20....

Thanks lorraina
I'd logged back in to say after taking a walk my gut was saying something closer to your mark would be what
I would walk away feeling satisfied in the here and now. Appreciate not yet time to decide but agree likely best option is to wait.

Quote from: lorraina on Jul 13, 2026, 09:54 AMYes early days.
In guess we will see an independent report,etc.

My "fair value" price is $1.20....

I agree, average free cashflow according to Invest Direct for the last 5 years was just over $5m a year.
We should not let this go to cheaply.

Receipt of Takeover Notice

2 Cheap Cars Group Limited (NZX:2CC) (2CC) advises that it has received a Takeover Notice (Notice) under the Takeovers Code from Sena & Co Limited (Sena & Co), indicating its intention to make a full takeover offer (Offer) for 100% of the fully paid ordinary shares in 2CC not already owned by it.

A copy of the Notice is attached. This does not constitute a formal takeover offer. If Sena & Co proceeds to make a takeover offer, it must do so within the period that begins 10 working days and ends 20 working days after today. Shareholders should be aware that Sena & Co is not legally obliged to make an offer during this period and, if it does not do so, the Notice will lapse.

Based on the Notice materials provided by Sena & Co, the proposed consideration would be for $0.80 in cash per share.

Sena & Co is the majority shareholder of 2CC, holding approximately 76% of the Shares in 2CC. It is wholly owned by the trustees of the Sena Family Trust, of which Yusuke David Sena, 2CC's CEO and director, is a trustee and beneficiary.

A Takeover Committee (Committee) of the 2CC Board comprising the independent directors, Michael Stiassny (chair of Committee) and Gordon Shaw, has been established. The Committee will manage engagement with Sena & Co, and consider and respond to the Notice and any ensuing takeover offer.

2CC has appointed Simmons Corporate Finance Limited as the independent adviser to provide a report on the merits of the Offer. 2CC has also appointed MinterEllisonRuddWatts as legal adviser and Craigs Investment Partners as financial adviser.

2CC and Sena & Co have entered into a costs reimbursement agreement, under which Sena & Co agrees to reimburse certain costs incurred by 2CC and its directors in connection with the Offer, including for the period prior to receipt of the Notice.

Should Sena & Co proceed to make a formal takeover offer, it is currently proposed that 2CC will issue a Target Company Statement at the same time as the formal takeover offer is made. This will include an Independent Adviser's Report and comments from the Committee on the actions shareholders should take.

2CC recommends that shareholders do not take any action until they have received and considered:
•the formal offer documentation from Sena & Co; and
•2CC's Target Company Statement, including the Independent Adviser's Report.

2CC will continue to keep shareholders informed.

For enquiries, please contact Angus Guerin, CFO: angus.guerin@2ccgroup.co.nz

Announcement authorised by:

Michael Stiassny - Independent Director, Chair
Gordon Shaw - Independent Director

What do you really think Lorriana, is 80 cents fair and reasonable ?

This is a note I sent to David Sena.;

Hi David,
I like the sector ,the company's strong balance sheet and low debt and positive cash flow from operations.
I like the way you run the business and have enjoyed seeing you do what you say you will do.
I think it makes sense that you own the business 100%,although I will be sad to sell our shares.
However I think because the present outlook is so strong the shares are worth between $1.05 and $1.35..
Austen


PS.As you know with illiquid shares you have to buy/sell when there is liquidity .
This means we will most probably sell into the take over.
The independent report should make for interesting reading.
As I have previously posted selling would mean we can pay off the granddaughters mortgage with our profit ,and still have a substantial amount to reinvest..
A lot has been made of the risks of importing cars from Japan.However for the past 50 years it has meant NZ vehicle fleet has stayed reasonably modern.

Time to get that new Merc or Jag lorriana ...or a Alfa Romeo

It feels good to help your kids and grandkids, no question about that !

One thing that intrigued me that I wonder if you could provide further clarification on, is they said in the FY26 annual report that FY26 was impacted to the tune of $1.7m by extra carbon costs relative to FY25, (however the profit stayed very similar year on year), but that the regime had changed by the fourth quarter providing relief.  They didn't seem to quantify that relief ?

Doesn't that carbon credit change imply quite a meaningfully more helpful trading environment going forward and what would the estimated reduction in carbon credit costs be in FY27 relative to last year ?  Any insights on that you can share ?

Quote from: winner (n) on Jul 15, 2026, 01:39 PMTime to get that new Merc or Jag lorriana ...or a Alfa Romeo

You're quite right there Winner, you cannot take your money with you when you go and your, mine and Lorriana's kids and grandkids as well as many other posters on here with their kids will probably inherit far more than they really deserve. 

Annual report to 31st March 2025.
Revenue was boosted by $1.7 million related to carbon credits
generated and retained in the prior fiscal year, but not previously
recognised due to regulatory uncertainty regarding their
realisation. This revenue was then partly offset by $1.1 million of
carbon credit costs associated with net credits attached to vehicles
sold in FY25.

Half year interim result 13th November 2025.
Gross margin decreased by two percentage points to 19%, primarily due to the impact of carbon tax costs under the Clean Car Standard. The $0.7 million decrease in NPAT primarily reflected the $0.7 million after-tax impact of the Clean Car Standard, as other favourable and unfavourable movements largely offset each other.

Therefore Govt Clean Car regs affected 2CC 2025 results.
On 1st January  2026 The Govt altered The Clean Car regs which resulted in 2CC taking off.

From latest annual report.
Hybrid and electric vehicles continued to make up a significant and growing proportion of the
Group's sales mix in FY26.
For the full year, EV/HEV vehicles averaged approximately 60% of total vehicle sales, up from
approximately 50% in FY25. While the mix eased slightly in the final quarter, demand remained
strong across the year, reflecting both a clear customer preference for more fuel-efficient vehicles
and the Group's ability to adjust sourcing through its direct procurement capability in Japan.
This shift highlights the importance of maintaining a flexible sourcing model and a product mix
that reflects customer affordability, fuel-efficiency preferences and the ongoing impact of Clean
2026 2025 Change % Car Standard settings.
 
Trading Update 19th June 2026.
As outlined in the Company's FY26 results announcement (29 May 2026), trading momentum improved materially through the second half of FY26. This was driven by stronger vehicle margins, improved procurement conditions, disciplined cost control and robust finance and insurance penetration rates.

This momentum has continued into the early part of FY27.

The Company recorded net profit after tax (NPAT) of approximately $0.6 million in March 2026, the final month of FY26. Unaudited management accounts for April and May 2026 also each show NPAT of approximately $0.6 million. Trading through the first half of June has remained positive

Quote from: winner (n) on Jul 15, 2026, 01:39 PMTime to get that new Merc or Jag lorriana ...or a Alfa Romeo

Hmmmmmmmmm.?The 2004 Nissan Slyphy.
I was going to buy a new car when I turned 70.
Then I put it off until I turned 75.
Then I put it off until I turn 80.Bit over two and a half years away.
A few months ago the Nissan started stalling a the lights.Thoughts turned to a new car.
However a magic mechanic said it was the throttle bodies carboning up.$40 later she is running like a Swiss watch.
Manager at Flag tyres said last time I sailed through a WOF."This is a nice car".Wise man...lol

Quote from: lorraina on Jul 15, 2026, 09:04 AMHi David,
I like the sector ,the company's strong balance sheet and low debt and positive cash flow from operations.
I like the way you run the business and have enjoyed seeing you do what you say you will do.
I think it makes sense that you own the business 100%,although I will be sad to sell our shares.
However I think because the present outlook is so strong the shares are worth between $1.05 and $1.35..
Austen

I think your assessment of fair value is sound.  Will he be forced to increase the takeover price is the $64,000 question ?

Quote from: Basil on Jul 15, 2026, 01:50 PM......mine and Lorriana's kids and grandkids as well as many other posters on here with their kids will probably inherit far more than they really deserve. 

I don't think you can presume to speak for other posters in this respect.

Giving kids & grandkids a head start in life is the sole motivation for much  investing.  Just saying.

Fair enough and good for you.  What I said probably came across the wrong way.  What I really meant to say to Percy and Winner is its not silly to enjoy some of your money too.   

The interesting question is will 80 cents be enough ?  With them making $2m in the second half of FY26 and $600K a month net profit after tax since March with the more reasonable carbon regime and Sylvia park cranking along is somewhere around $6m on the cards ?.  While its probably unreasonable for a straight extrapolation of recent months trading $600K x 12 = $7.2m NPAT...suppose we figure on $4.5m being a very conservative new baseline, that's 10 cps.

So David Sena only wants to pay a PE of 8 on baseline current years earnings to takeover the company.  Consider also there's saving in listing and compliance fees with privatization, its seems insufficient. especially if recent trading continues.

A fair baseline in my opinion would be 10 times current year baseline earnings based on $4.5m or 10 cents per share.  $1 might get this over the line.  Not sure about 80 cents.  I reckon that's a very cheeky lowball offer.

fROM THE LATEST ANNUAL REPORT;
FY27
PRIORITIES
The Group enters FY27 with strong early trading
momentum and a continued focus on disciplined
execution, operational efficiency, direct-to-consumer
marketing, and balance sheet strength.
Looking ahead, 2 Cheap Cars is well positioned to benefit from
FY26 investments. The Sylvia Park branch will provide a full-year
contribution in FY27.
We are also strengthening our operating platform, with an increased
focus on Christchurch, including the establishment of dedicated
refurbishment capacity and additional operational leadership in
the region. In Auckland, we are rebalancing internal and external
compliance and refurbishment activity through the hub to improve
efficiency, control, and speed to market.
Further opportunities exist through digital capability, increased
own-channel lead generation, continued finance and insurance
contributions, and disciplined inventory management. The company
is also exploring further network opportunities to support future
volume growth and customer reach.

Perhaps the $0.06mil  NPAT per month will be exceeded.? NB $0.06 per month is $7.2 mil for the year.
Full year NPAT of $6mil would be EPS of 13 cps..PE of 8 would give a share price of $1.04
Full year NPAT of $7.5mil would be EPS of 16.5..PE of 8 would give a share price of $1.32
Then we must ask ourselves whether a PE of 8 is sensible.10 is a nicer number.?...lol

As you suggest lorriana, the independent report will make for interesting reading.  I think shareholders should hold out for an increased price.

Quote from: lorraina on Jul 15, 2026, 06:56 PMfROM THE LATEST ANNUAL REPORT;
FY27
PRIORITIES
The Group enters FY27 with strong early trading
momentum and a continued focus on disciplined
execution, operational efficiency, direct-to-consumer
marketing, and balance sheet strength.
Looking ahead, 2 Cheap Cars is well positioned to benefit from
FY26 investments. The Sylvia Park branch will provide a full-year
contribution in FY27.
We are also strengthening our operating platform, with an increased
focus on Christchurch, including the establishment of dedicated
refurbishment capacity and additional operational leadership in
the region. In Auckland, we are rebalancing internal and external
compliance and refurbishment activity through the hub to improve
efficiency, control, and speed to market.
Further opportunities exist through digital capability, increased
own-channel lead generation, continued finance and insurance
contributions, and disciplined inventory management. The company
is also exploring further network opportunities to support future
volume growth and customer reach.

Disc: I've put my money where my mouth is and bought 186,000 shares yesterday at an average of 78.5 cps which makes me the 12th largest shareholder in the top 20.  I think 80 cents is egregiously low and won't accept anything under $1.00.  Looking forward to reading the independent report.

Quote from: Basil on Jul 16, 2026, 12:23 PMDisc: I've put my money where my mouth is and bought 186,000 shares yesterday at an average of 78.5 cps which makes me the 12th largest shareholder in the top 20.  I think 80 cents is egregiously low and won't accept anything under $1.00.  Looking forward to reading the independent report.

Interesting, I've been and seen some posting of the Beagle on the other site and see some of your thinking and perspective. Personally thanks if it comes to pass that you've mopped up some half a percent of the issued shares that would have chosen to readily accept the 80c; that plus lorraina and his missuses 2.8%, plus perhaps ACC 2.7%, might get closer to the 10% of the shares looking beyond the initial offer, thus blocking the 90% acceptance being rushed toward.

Feel it has merit, even if somewhat hypocritical when personally I'm looking to holdout on accepting, or selling on market my few thousand shareholding as I had chosen in the past for WHS, and desire I had with BRW.

Quote from: Basil on Jul 16, 2026, 12:23 PMDisc: I've put my money where my mouth is and bought 186,000 shares yesterday at an average of 78.5 cps which makes me the 12th largest shareholder in the top 20.  I think 80 cents is egregiously low and won't accept anything under $1.00.  Looking forward to reading the independent report.

Crikey! Has the self proclaimed dividend hound lost his mind and suddenly become a share trader chasing short term capital gains?

Grab your popcorn, sit back and watch this space. David Sena versus Basil the Beagle.

One thing for sure, outside entry and long term holder, Percy/Lorriana will be a sure winner . Well done Percy.

Interesting times ahead. GLH's

Really keen to see how this plays out - good luck all.

Quote from: Otago K on Today at 07:13 AMInteresting, I've been and seen some posting of the Beagle on the other site and see some of your thinking and perspective. Personally thanks if it comes to pass that you've mopped up some half a percent of the issued shares that would have chosen to readily accept the 80c; that plus lorraina and his missuses 2.8%, plus perhaps ACC 2.7%, might get closer to the 10% of the shares looking beyond the initial offer, thus blocking the 90% acceptance being rushed toward.

I think David Sena is really going to struggle to get to 90% at 80 cents.