2CC - 2 Cheap Cars Group

[Sideshow Bob]

Experienced new Board appointed - NZX, New Zealand’s Exchange

[Sideshow Bob]

https://www.nzx.com/announcements/403188

Integrated automotive group, NZ Automotive Investments Limited (NZAI) (NZX:NZA) has today reported
revenue and income of $40.2m, an increase of 29 percent, for the half year to 30 September 2022 (HY23).
Summary of key results
(Figures quoted are in NZ dollars. Comparisons are made against HY22.)
 Revenue and income: $40.2m, increased 29%1.
 Vehicle sales: Up 11% to 4,281.
 Underlying EBITDA2 including finance income: $2.9m, down $0.3m.
 Net profit after tax (NPAT): $0.6m, down $0.8m (including $0.7m of restructuring costs)
 Underlying NPAT: $1.0m, a decrease of $0.4m.
 Underlying earnings per share (EPS): 2.3 cents per share (cps) against 3.1cps for HY22.

[Getty]

$40.2M of revenue to make $600K NPAT.

Is this business a charity?

It's not as if they have a backroom of R & D personnel to support, or creating some other asset.

All that endeavor for so little return.

All seems 2 cheap to me.

[Sideshow Bob]

$40.2M of revenue to make $600K NPAT.

Is this business a charity?

It's not as if they have a backroom of R & D personnel to support, or creating some other asset.

All that endeavor for so little return.

All seems 2 cheap to me.

Its no Turners.....

[Getty]

At $140 npat per car, it's the cheapest car storage & cleaning facility in town.

Their customers must love 'em.

[Rawz]

looks like they are giving up on their internal finance co.

[Getty]

I don't think they will feature on Wheeler Dealers (Sky TV) anytime soon.

Yasuke needs to reconsider his margins.
He too kind.

[Getty]

Interesting to note 23% of sales are online.

I take that to mean that while the cars may be mechanically tested on behalf of the buyer, they are not test driven by the buyer, but despatched on a transporter or picked up by a third party.

That means @1000 cars were sold this way.

Trusting private buyers?

I suspect it's more likely other dealers are using 2 Cheap as a wholesale supply, and they make a better margin.

[blackcap]

Three announcements today. A trading update, seems positive on the face of it and an auditor, that has to be good. Wonder if the SP will bottom out. I have taken a nibble.

[nztx]

$40.2M of revenue to make $600K NPAT.

Is this business a charity?

It's not as if they have a backroom of R & D personnel to support, or creating some other asset.

All that endeavor for so little return.

All seems 2 cheap to me.

probably after the charities have all been through

anyone seen an expensive charity visiting ?