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For immediate release

14 September 2009

Interim Results

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 2009. 

Highlights:

• Revenue up 1.9% to £21.6 million (2008: £21.2 million) but the difficult economic climate resulted in a like for like turnover fall of 4.0%

• Tight cost control has ensured continued profitability, with profit before taxation of £563,000 (2008: £647,000)

• EPS down 6.9% to 2.7p (2008: 2.9p)

• Strong operating cash flow maintained at £1.2 million and net debt reduced by £0.5 million 

• Strong balance sheet with committed bank facilities of £3.8 million, only £1.3 million utilised

• Interim dividend unchanged at 0.53p per share reflecting confidence in the business prospects

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

'Set against a tough economic backdrop, I am pleased with the Group's performance during the six months to 30 June 2009. We remain very profitable and with our established management team and strong balance sheet I believe that we are well placed within the industry and I remain very confident of the prospects for the Group'

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 2009

Introduction

Just Car Clinics Group plc ('the Group') has responded proactively to the prevailing economic climate and during the first six months of 2009 has maintained a strong operating cash flow and recorded only a slight fall in profitability. This performance reflects the underlying resilience of the business to macroeconomic conditions and follows a period of sustained growth in profitability for each of the previous five years.  

Trading highlights

	6 months to	6 months to
	30.06.09	30.06.08
Revenue (£'000)	21,598	21,199
Gross margin	41.2%	42.3%
Profit margin	2.6%	3.1%
Profit before taxation (£'000)	563	647
Basic earnings per share	2.7p	2.9p
Operating cash flow (£'000)	1,232	1,244
Interim dividend per share	0.53p	0.53p

Results 

Revenue for the six months ended 30 June 2009 increased by 1.9% to £21.6 million (2008: £21.2 million) including contributions from acquisitions during 2008. After adjusting for the impact of sites acquired last year, revenue decreased on a like for like basis by 4.0%, when compared to the equivalent period.

Mandatory vehicle insurance means that the accident repair market is broadly insulated from the wider economic climate. However, reduced road usage has resulted in fewer collisions and this together with reluctance by retail customers to incur insurance excess payments, has adversely affected volumes across the industry. The Group has sought additional business with fleet and local businesses, and has extended its offering to include light cosmetic repairs, tyre fitting and car servicing at selected locations. These have, to some extent, mitigated the impact of the adverse market conditions. 

As set out in the 2008 Annual Report, gross margins during last year were adversely affected by reduced margins at more recently acquired sites, variability in weekly repair volumes resulting in reduced efficiency and the difficulty of passing cost increases on to customers in the prevailing economic climate. These factors have continued to affect margins in 2009 and the overall gross margin of 41.2% is in line with that recorded in the second half of 2008, although lower than the 42.3% achieved in the first half of last year.

The Group has responded to the difficult market conditions by continuously reviewing structures and associated operating costs. A combination of cost reductions at some locations and a flexible approach to moving people and other resources in order to align capacity and available volumes on a weekly basis, have mitigated the effect of variable and reduced repair volumes.  As a result, operating costs have been reduced from 39.1% of sales in 2008 to 38.4% of sales in the equivalent period this year.

Despite this tight cost control the difficult underlying market conditions have resulted in a reduction in profit before taxation to £563,000 (2008: £647,000) and a decrease in earnings per share of 6.9% to 2.7p (2008: 2.9p).

The underlying tax rate reduced to 30.0% (2008: 34.0%) reflecting a non-recurring increase in deferred tax resulting from the phased abolition of capital allowances on industrial buildings in 2008. 

Working capital and loan facilities

Cash flow from operating activities continued to be strong at £1.2 million and in the present economic environment working capital control has been an increased priority for the Group.

Net debt at the period end was £1.3 million compared to £1.8 million at the end of 2008. The Group has total committed loan facilities of £3.8 million, comprising a £1.1 million term loan, a £2.5 million debtor finance facility and a £0.2 million overdraft.

Dividends 

The Board is maintaining the level of the interim dividend at 0.53p per share (2008: 0.53p per share), reflecting the continued profitability, strong cash flow and confidence in the Group's long-term prospects.

Strategy and prospects

The Group is continuing to seek suitable acquisition opportunities, but only where these meet stringent criteria in respect of location, team structure, underlying culture, potential repair volumes and acquisition cost.

The underlying economic conditions and volatility of the market present significant challenges for the Group and these are expected to continue for the remainder of 2009. However, with a strong balance sheet and established management structure the Board believe that Just Car Clinics is well placed to respond.

David Hickey Chairman

14 September 2009

   Group Statement of Comprehensive Income 

	6 months to 30.06.2009 £'000 Unaudited	6 months to 30.06.2008 £'000 Unaudited	12 months to    31.12.2008    £'000    Audited
Revenue from sales - continuing activities	21,598	21,199	42,617
Cost of sales	(12,706)	(12,237)	(24,854)
Gross profit	8,892	8,962	17,763
Operating expenses	(8,301)	(8,285)	(16,397)
Total operating profit - continuing activities	591	677	1,366
Finance revenue	-	12	20
Finance costs	(28)	(42)	(79)
Profit before taxation	563	647	1,307
Taxation (note 2)	(169)	(220)	(447)
Profit for the period - attributable to equity holders of parent	394	427	860
Other comprehensive income:
Income tax on share based payments	-	-	(18)
Gain/(loss) on interest rate hedge	22	24	(60)
Income tax on interest rate hedge	(6)	-	26
Other comprehensive income for the period net of tax	16	24	(52)
Total comprehensive income - attributable to equity holders of parent	410	451	808
Earnings per share (note 3)
Basic earnings per share	2.7p	2.9p	5.9p
Diluted earnings per share	2.7p	2.9p	5.9p

Group balance sheet 

	At 30.06.2009 £'000 Unaudited	At 30.06.2008 £'000 Unaudited	At 31.12.2008 £'000 Audited
ASSETS
Non current assets
Property, plant and equipment	2,277	2,411	2,367
Intangible assets	2,058	2,039	2,060
	4,335	4,450	4,427
Current assets
Inventories	592	625	544
Trade and other receivables	5,558	4,893	6,645
Cash and cash equivalents	4	328	3
	6,154	5,846	7,192
TOTAL ASSETS	10,489	10,296	11,619
LIABILITIES
Current liabilities
Trade and other payables	(4,707)	(4,700)	(5,406)
Financial liabilities	(599)	(400)	(927)
Derivative financial instruments	(70)	(8)	(92)
Corporation tax liability	(210)	(292)	(361)
	(5,586)	(5,400)	(6,786)
Non-current liabilities
Financial liabilities	(700)	(1,100)	(900)
Corporation tax liability	-	(220)	-
Deferred tax liability	(213)	(130)	(207)
	(913)	(1,450)	(1,107)
TOTAL LIABILITIES	(6,499)	(6,850)	(7,893)
TOTAL NET ASSETS	3,990	3,446	3,726
CAPITAL AND RESERVES
Issued equity share capital	146	146	146
Share premium account	345	342	344
Retained earnings	3,549	2,966	3,302
Other reserves	(50)	(8)	(66)
TOTAL EQUITY	3,990	3,446	3,726

Group Statement of Cash Flows 

	6 months to 30.06.2009 £'000 Unaudited	6 months to 30.06.2008 £'000 Unaudited	12 months to 31.12.2008 £'000 Audited
Operating activities
Profit after taxation for the period	394	427	860
Adjustments to arrive at operating cash flow:
Income tax	169	220	447
Net finance costs	28	30	59
Depreciation and amortisation	278	240	513
Gain on sale of property, plant and equipment	-	(5)	(5)
Expense arising from share based payments	5	10	8
Changes in inventories	(48)	57	160
Changes in trade and other receivables	1,087	33	(1,719)
Changes in trade and other payables	(681)	182	921
Cash generated from operations	1,232	1,194	1,244
Income tax paid	(320)	-	(293)
Net cash flow from operating activities	912	1,194	951
Investing activities
Sale of property, plant and equipment	1	6	6
Payments to acquire property, plant and equipment	(186)	(262)	(463)
Payments to acquire computer software	(1)	(2)	(8)
Payments to acquire businesses	-	(289)	(354)
Net cash flow from investing activities	(186)	(547)	(819)
Financing activities
Interest paid	(46)	(45)	(115)
Interest received	-	12	20
Proceeds from shares issued on exercise of options	1	-	2
Repayments of borrowings	(200)	(200)	(400)
Dividend paid to equity holders of Parent Company	(152)	(146)	(223)
Net cash flow from financing activities	(397)	(379)	(716)
Change in cash and cash equivalents	329	268	(584)
Cash and cash equivalents at beginning of period	(524)	60	60
Cash and cash equivalents at end of period	(195)	328	(524)

Reconciliation to net debt (comprising borrowings less cash and cash equivalents)
Net debt at beginning of period	(1,824)	(1,640)	(1,640)
Change in cash and cash equivalents	329	268	(584)
Changes in bank loans during period	200	200	400
Net debt at end of period	(1,295)	(1,172)	(1,824)

 Group Statement of Changes in Equity

	Issued share capital £'000 Unaudited	Share premium £'000 Unaudited	Other reserves £'000 Unaudited	Retained earnings £'000 Unaudited	Total equity £'000 Unaudited
At 1 January 2008	146	342	(32)	2,675	3,131
Total comprehensive income	-	-	24	427	451
Share based payments	-	-	-	10	10
Equity dividends paid	-	-	-	(146)	(146)
At 30 June 2008	146	342	(8)	2,966	3,446
At 1 January 2009	146	344	(66)	3,302	3,726
Total comprehensive income	-	-	16	394	410
Exercise of share options	-	1	-	-	1
Share based payments	-	-	-	5	5
Equity dividends paid	-	-	-	(152)	(152)
At 30 June 2009	146	345	(50)	3,549	3,990

Notes to the interim report

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 2008.  

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 14 September 2009 and is unaudited.  

The financial information for the year ended 31 December 2008 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 2009 has been estimated based on the anticipated effective rate of 30% for the year ending 31 December 2009. 

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 14,592,959 (30 June 2008: 14,569,066; 31 December 2008: 14,574,085). 

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 14,669,779 (30 June 2008: 14,723,579; 31 December 2008: 14,674,559). 

4.    Dividend.  An interim dividend of 0.53p per share (2008: 0.53p) will be paid on 23 October 2009 to shareholders on the register on 25 September 2009. The shares will be marked ex dividend on 23 September 2009.

5.    Interim report.  Copies of this interim report will be posted to shareholders on 25 September 2009 and will be available from the registered office of the Company at Rawcliffe Road, Goole, East Yorkshire DN14 6XL.

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