Just Car Clinics feel the pain as drivers delay minor repairs

CRASH repair chain Just Car Clinics sunk to an annual loss as drivers postponing minor repairs sent revenues tumbling.

The Goole-based group, which de-listed from the junior stock market last year, said turnover fell 15.5 per cent to £39.3m in 2011. It moved to a £346,000 pre-tax loss from a £1.1m profit a year earlier.

However, JCC improved margins to 42.2 per cent from 40.2 per cent a year earlier by focusing on repairing damaged components rather than just replacing them – thus reducing the number of vehicles written off.

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The group quit the Alternative Investment Market last November, blaming disproportionate costs and minimal benefits from its nine years as a public company.

It blamed the fall in revenues on tough trading in 2011, with the weak economy, high petrol prices and high insurance premiums forcing drivers to delay smaller repairs. Dry weather from its second quarter onwards also meant fewer accidents. JCC said a “stringent” review of costs included a recruitment freeze, redundancies and merger costs from the closure of a site in Sheffield. Annual savings totalled £2.1m.

But the firm said it continues to target growth through acquisitions. Last month it announced the purchase of two Shires Accident Repair Centre sites in Gloucester and Leamington Spa for an undisclosed sum.

“Expansion by acquisition remains an option to increase the footprint of the group, but this will be dependent on obtaining acceptable forecast returns on investment,” said the firm, headed by chief executive Barry Whittles.

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The Gloucester business employs 15 staff and JCC plans to add eight more over the year. The Leamington Spa business is being re-opened, after closing six months earlier, creating 15 roles.

The company added it is in a good position to grow market share, despite the tough economy. “As and when volumes recover, the group should see substantial benefit,” it said.

JCC ended 2011 with net debt of £2.4m.