Just Car Clinics confident despite revenue fall

A NEED for drivers to save cash by keeping their vehicles off the road hit revenues at car repairs centres operator Just Car Clinics in 2011, the company has revealed.

The Goole-based company, which left the Alternative Investment Market late last year, blamed high petrol prices and high insurance excess payments as contributing factors for customers delaying smaller repairs.

Dry weather conditions also affected revenue, which fell by 15.5% to £39.3m in 2011.

Underlying profit before interest, tax and depreciation, excluding exceptional costs, fell from £1.7m in 2010 to £700,000 in the 12 months to December 31.

The company operates 25 centres in the country, offering services including servicing, MOTs, air conditioning and windscreen repair following collisions.

Commenting in the company’s annual report, chairman David Hickey and chief executive Barry Whittles, said: “The group’s strategy is to grow organically by securing additional contracts with insurers and small corporate clients together with continuing to expand the breadth of the retail offering.

“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.

“Just Car Clinics remains the second largest independent operator in the UK and while tough trading conditions persist, the board believes that, with a strong balance sheet and an experienced management team, the group is in a good position to grow market share and to trade profitably.

“As and when volumes recover, the group should see substantial benefit.”

Nobody from the company was available for comment at the time of publication.