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FOR IMMEDIATE RELEASE

10 September 2008

Interim Results

A Record six months performance

Just Car Clinics Group plc ('Just Car Clinics'), the independent collision repair chain with 23 vehicle repair centres, today announces its interim results for the six months ended 30 June 2008. 

Highlights:

• Revenue up 16.8% to £21.2 million (2007: £18.1 million)

• Like for like turnover growth of 3.8%

• Profit before taxation up 16.6% to £647,000 (2007: £555,000)

• EPS up 7.4% to 2.9p (2007: 2.7p)

• Operating cash flow strong at £1.2 million 

• Sites in Swindon and Banbury added in the first six months of 2008, and since the period end an additional site has been added in Hull

• Interim dividend increase of 6% to 0.53p per share (2007: 0.50p)

Commenting on the results, Barry Whittles, Chief Executive of Just Car Clinics, said:

'I am delighted with these record interim results with improvement in both volumes and profit.  High fuel costs have resulted in trading since the end of the first quarter being volatile, however, we expect to end the year in line with market expectations.'

For further information, please contact:
Just Car Clinics:
Barry Whittles, Chief Executive	07850 268369
Chris Elton, Finance Director	07702 598344
Buchanan Communications:
Tim Thompson / Chris McMahon	020 7466 5000

  Chairman's Statement for the six months ended 30 June 2008

Introduction

It is very pleasing to report the continued development of Just Car Clinics Group plc ('the Group').  The Group 
has once again reported a record performance during the first six months of 2008, with improvements in both 
volumes and profits.  

The Group continues to identify expansion opportunities that meet established criteria. Over the past two years the Group has expanded its chain of locations from thirteen to twenty-three. Sites in Swindon and Banbury were added during the first six months of 2008 and since the period end an additional site has been acquired in Hull. 

Trading highlights

	6 months to	6 months to
	30.06.08	30.06.07
Revenue (£'000)	21,199	18,149
Gross margin	42.3%	42.9%
Profit margin	3.1%	3.1%
Profit before taxation (£'000)	647	555
Basic earnings per share	2.9p	2.7p
Interim dividend per share	0.53p	0.50p

Results 

Revenue for the six months ended 30 June 2008 increased by 16.8% to £21.2 million (2007: £18.1 million) including contributions from acquisitions.  

The significant increases in fuel prices during the period have undoubtedly resulted in a fall in the number of vehicles on the road and a consequential reduction in available repair volume in the market. Despite this, the Group has managed to increase revenue on a like for like basis by 3.8% (after adjusting for the impact of acquisitions during 2007 and 2008).  

When compared to the equivalent period last year gross margins decreased slightly to 42.3% (2007: 42.9%) and they were 0.7% lower than those recorded for 2007 as a whole.  As noted in the 2007 Annual Report gross margins at more recently acquired sites are lower than mature locations and the relatively difficult market conditions have extended the period required for new locations to achieve maturity. 

Economies of scale in respect of central costs and tight cost control resulted in operating costs being reduced from 39.6% of sales in 2007 to 39.1% of sales in the current period, despite inflationary pressures adversely affecting energy and fuel costs.  

A combination of the growth in revenue, margin pressure at new locations and tight cost control were together reflected in a 16.6% increase in profit before taxation to £647,000 (2007: £555,000).

The underlying tax rate increased to 34% (2007: 30%) reflecting a non-recurring increase in deferred tax resulting from the phased abolition of capital allowances on industrial buildings. There is no resulting impact on the amounts of tax that will be paid and it is anticipated that the underlying rate will reduce to approximately 30% from 2009 onwards. As a consequence of the increased tax rate, the increase in earning per share was 7.4% at 2.9p (2007: 2.7p).

Working capital and loan facilities

Cashflow from operating activities continued to be strong at £1.2 million, despite increases in trading volumes, and working capital control remains a key focus of the Group.

Net debt at the period end was £1.2 million compared to £1.6 million at the end of 2007. The Group has total committed loan facilities of £4.2 million, comprising a £1.5 million term loan, a £2.5 million debtor finance facility and a £0.2 million overdraft.

Dividends 

The Board is pleased to announce the payment of an interim dividend of 0.53p per share (2007: 0.50p per share) representing an increase of 6% and reflecting long term confidence in the Group's prospects.

Strategy and prospects

The strategy of the Group continues to be one of expansion; organically where possible and by acquisition of individual sites and regional groups where these meet acquisition criteria. 

Although trading since the end of the first quarter has been more volatile than normally expected, primarily due to the impact of high fuel costs, the Board continues to believe that the Group will trade in line with expectations for 2008 as a whole.

David Hickey Chairman

10 September 2008

  Consolidated Income Statement for the six months ended 30 June 2008

	6 months to 31.12.2008 £'000 Unaudited	6 months to 30.06.2007 £'000 Unaudited	12 months to 31.12.2007 £'000 Audited
	6 months to 31.12.2008 £'000 Unaudited	6 months to 30.06.2007 £'000 Unaudited	12 months to 31.12.2007 £'000 Audited
Revenue from sales - continuing activities	21,199	18,149	36,802
Cost of sales	(12,237)	(10,358)	(20,978)
Gross profit	8,962	7,791	15,824
Operating expenses	(8,285)	(7,191)	(14,568)
Total operating profit - continuing activities	677	600	1,256
Net finance costs	(30)	(45)	(65)
Profit before taxation	647	555	1,191
Taxation (note 2)	(220)	(167)	(349)
Retained profit for the period	427	388	842
Earnings per share (note 3)
Basic earnings per share	2.9p	2.7p	5.8p
Diluted earnings per share	2.9p	2.6p	5.7p

Statement of Changes in Equity for the six months ended 30 June 2008

	6 months to 30.06.2008 £'000 Unaudited	6 months to 30.06.2007 £'000 Unaudited	12 months to 31.12.2007 £'000 Audited
	6 months to 30.06.2008 £'000 Unaudited	6 months to 30.06.2007 £'000 Unaudited	12 months to 31.12.2007 £'000 Audited
Total equity at start of period	3,131	2,349	2,349
Income tax - share based payments	-	-	17
Change in value of interest rate hedge	24	-	(32)
Net expense recognised directly in equity	24	-	(15)
Profit for the period	427	388	842
Total recognised income or expense	451	388	827
Exercise of share options	-	6	10
Share based payment	10	8	17
Equity dividend paid	(146)	-	(72)
Total equity at end of period	3,446	2,751	3,131

Consolidated Balance Sheet at 30 June 2008

	At 30.06.2008 £'000 Unaudited	At 30.06.2007 £'000 Unaudited	At 31.12.2007 £'000 Audited
	At 30.06.2008 £'000 Unaudited	At 30.06.2007 £'000 Unaudited	At 31.12.2007 £'000 Audited
ASSETS
Non current assets
Property, plant and equipment	2,411	2,178	2,275
Intangible assets	2,039	1,909	1,906
	4,450	4,087	4,181
Current assets
Inventories	625	702	639
Trade and other receivables	4,893	3,791	4,926
Cash and cash equivalents	328	1,065	60
	5,846	5,558	5,625
TOTAL ASSETS	10,296	9,645	9,806
LIABILITIES
Current liabilities
Trade and other payables	(4,700)	(4,729)	(4,521)
Financial liabilities	(400)	(400)	(400)
Derivative financial instruments	(8)	-	(32)
Corporation tax liability	(292)	(8)	(292)
	(5,400)	(5,137)	(5,245)
Non-current liabilities
Financial liabilities	(1,100)	(1,500)	(1,300)
Corporation tax liability	(220)	(167)	-
Deferred tax liability	(130)	(90)	(130)
	(1,450)	(1,757)	(1,430)
TOTAL LIABILITIES	(6,850)	(6,894)	(6,675)
TOTAL NET ASSETS	3,446	2,751	3,131
CAPITAL AND RESERVES
Issued equity share capital	146	145	146
Share premium account	342	339	342
Retained earnings	2,966	2,356	2,675
Other reserves	(8)	(89)	(32)
TOTAL EQUITY	3,446	2,751	3,131

Consolidated Cashflow Statement for the six months ended 30 June 2008

	6 months to 30.06.2008 £'000 Unaudited	6 months to 30.06.2007 £'000 Unaudited	12 months to 31.12.2007 £'000 Audited
Operating activities
Profit after taxation for the period	427	388	842
Adjustments to arrive at operating cashflow:
Income tax	220	167	349
Net finance costs	30	45	65
Depreciation and amortisation	240	225	483
Gain on sale of property, plant and equipment	(5)	-	(27)
Expense arising from share based payments	10	8	17
Changes in inventories	57	(71)	(5)
Changes in trade and other receivables	33	201	(934)
Changes in trade and other payables	182	508	309
Cash generated from operations	1,194	1,471	1,099
Income tax paid	-	-	(8)
Net cashflow from operating activities	1,194	1,471	1,091
Investing activities
Sale of property, plant and equipment	6	1	63
Payments to acquire property, plant and equipment	(262)	(171)	(518)
Payments to acquire computer software	(2)	(2)	(4)
Payments to acquire businesses	(289)	(496)	(525)
Net cashflow from investing activities	(547)	(668)	(984)
Financing activities
Interest paid	(45)	(39)	(109)
Interest received	12	15	44
Proceeds from shares issued on exercise of options	-	6	10
Repayments of borrowings	(200)	(2,101)	(2,301)
Receipts from new borrowings	-	2,000	2,000
Dividend paid to equity holders of Parent Company	(146)	-	(72)
Net cashflow from financing activities	(379)	(119)	(428)
Change in cash and cash equivalents	268	684	(321)
Cash and cash equivalents at beginning of period	60	381	381
Cash and cash equivalents at end of period	328	1,065	60

Reconciliation to net debt (comprising borrowings less cash and cash equivalents)
Net debt at beginning of period	(1,640)	(1,604)	(1,604)
Change in cash and cash equivalents	268	684	(321)
Changes in bank loans during period	200	101	301
Amortisation of finance issue costs	-	(16)	(16)
Net debt at end of period	(1,172)	(835)	(1,640)

  Notes to the interim report for the six months ended 30 June 2008

1.    Basis of preparation.  The interim report has been prepared on the basis of International Financial Reporting Standards ('IFRS') in accordance with accounting policies set out in the Annual Report for the year ended 31 December 2007.  

The financial information set out in this interim report does not constitute statutory accounts within the meaning of Section 435 of the Companies Act 2006. The interim report was approved by the Board of Directors on 10 September 2008 and is unaudited.  

The financial information for the year ended 31 December 2007 is extracted from the statutory accounts for that period.  A copy of the full accounts for that period, on which the auditors have issued an unqualified report, has been delivered to the Registrar of Companies. 

2.    Taxation.  The taxation charge for the six months ended 30 June 2008 has been estimated based on the anticipated effective rate of 34% for the year ending 31 December 2008. The anticipated rate is higher than the statutory rate primarily due to the impact on deferred taxation of the phasing out of capital allowances on industrial buildings.

3.    Earnings per share ('EPS').  EPS have been calculated on the result after taxation and on the weighted average number of shares in issue being 14,569,066 (30 June 2007: 14,477,168; 31 December 2007: 14,515,392). 

In calculating diluted EPS, the weighted average number of shares has been adjusted for the diluting effect of share options giving a diluted number of shares of 14,723,579 (30 June 2007: 14,662,412; 31 December 2007: 14,694,329). 

4.    Dividend.  An interim dividend of 0.53p per share (2007: 0.50p) will be paid on 17 October 2008 to shareholders on the register on 19 September 2008. The shares will be marked ex dividend on 17 September 2008.

5.    Acquisitions.  During the first six months of 2008 the Group acquired two additional businesses located in Swindon and Banbury. The total consideration paid was £289,000 comprising provisional fair values as follows; plant and equipment of £113,000; inventories of £43,000 and goodwill (including expenses) of £133,000.

During the current period, these additional sites have contributed revenue of £411,000 and made an operating loss of £40,000.

6.    Interim report.  Copies of this interim report will be posted to shareholders on 23 September 2008 and will be available from the registered office of the Company at Rawcliffe Road, Goole, East Yorkshire DN14 6XL.

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