14 September 2010 – interim results

The car repair group has announced interim results for the six months to 30 June revealing a 17% increase in revenues to £25.3m (2009: £21.6m) with pre-tax profits rising by 8% to £608,000 (2009: £563,000).  Earnings per share rose by 11% to 3.0p (2009: 2.7p) and the interim dividend was raised by 32% to 0.70p (2009: 0.53p). 

These were excellent results and repair volumes benefited from the snow and ice experienced early in the year albeit at the cost of lower margins as branches extended opening hours.  New services are being introduced such as tyre replacement, now available at all locations and a mobile accident repair offering is being trialled.  Assuming full year profits of £1.25m for earnings per share of 6.2p, the shares look undervalued to us and we rate them a BUY.