2CC - 2 Cheap Cars Group

[percy]

Looking forward to NZA's next update.
Would think they are doing well replacing flood damaged vehicles.

[Sideshow Bob]

https://www.nzx.com/announcements/410544

Market update
NZAI agrees terms for new finance facility, appoints new CFO and provides trading update

NZ Automotive Investments Limited (NZAI or the Company) (NZX:NZA) advises that it has agreed terms for a replacement trade finance facility for retail brand, 2 Cheap Cars.

Finance facility

NZAI has agreed terms and is awaiting final documentation, having reached an agreement with a long-term strategic finance partner to provide a trade finance facility. This facility will replace NZAI’s current arrangement with ASB and will be in place by mid-May. ASB will extend the current facility to ensure a seamless transition.
FY23 trading update

The Company expects unaudited underlying net profit after tax for the year ended 31 March 2023 to be $2.0m, against $1.7m in FY22. Unaudited actual net profit after tax (NPAT) – including one-off restructuring costs of $1.0m – is expected to be $1.3m. This compares with FY22 NPAT of $2.6m which included one-off gains of $0.8m.
‘Our new leadership team has been razor-focused on prudent cost controls, accelerating penetration rates on finance and insurance, and managing price and promotions more effectively whilst tailoring inventory to specific locations. This has seen gross margins improve significantly in the last quarter,” Millward says.

February and March results alone make up approximately 35% of FY23 underlying NPAT, indicating a swift and marked impact.

The Company will provide a detailed trading update when its full results are released at the end of May 2023.

New CFO
The company is pleased to announce the appointment of Angus (Gus) Guerin as Chief Financial Officer from 26 June 2023, replacing Haydn Marks who leaves at the end of June.

Mr Guerin is currently CFO of ArchiPro. Prior to that, Gus enjoyed a long and successful international career with British American Tobacco culminating in his role as Director of Finance NZ. He has strong experience in New Zealand and abroad with blue-chip multinational companies including Fonterra, Wyndham Exchange & Rentals (part of Wyndham Worldwide) and Treasury Wines.

“Gus will be a great addition to the leadership team. He has broad commercial experience, combined with energy, passion and a proven track record in leading finance functions that assist in delivering enhanced bottom- and top-line performance,” Millward says.
[ends]

[winner69]

Lots of feel good buzz words eh Bob

Like the ‘razor-focused’ and ‘swift and marked impact’

Seems ‘well positioned’ is losing its popularity

[Sideshow Bob]

Lots of feel good buzz words eh Bob

Like the ‘razor-focused’ and ‘swift and marked impact’

Seems ‘well positioned’ is losing its popularity

I did note the "razor-focused" comment.

Don't worry, I'm sure young Percy remains "well-positioned".

[Sideshow Bob]

Here you go W69....

Razor.jpg

[winner69]

I did note the "razor-focused" comment.

Don't worry, I'm sure young Percy remains "well-positioned".

Shame ABs won’t be razor-focused with swift and marked impact this coming RWC (will we even get into semis)

Long wait to 2027

[ralph]

I did note the "razor-focused" comment.

Don't worry, I'm sure young Percy remains "well-positioned".

That Razor focusing sure seems to have cut a deep chunk of the sp .

[nztx]

That Razor focusing sure seems to have cut a deep chunk of the sp .

Some focusing on a privatisation must be on the cards soon ?

[percy]

Of interest to me is market share.
According to NZA's 31st January announcement 2Cheap Cars ) advises it has increased its used
car market share to 7%, in the third quarter to 31 December 2022, despite the overall New Zealand used
car market dropping by 9.5%2. Also EVs made up 41% of their sales.
Turners in their 10th May presentation state they hold 8%.They do not state what % of sales are EVs.I would expect under 10%.

[ralph]

I know percy someone must think different to us ,with the big drop in the last few days. As previously stated its the add on moneyspinners that are letting them down turners do better with car Insurance finance etc .
But nzai cars are to cheap, price wise they could go up a notch