Proactive Investors - Run By Investors For Investors

BCA Marketplace: Numis turns more bullish after interims beat forecasts

Numis upgraded its profit forecasts and increased its price target after the first-half figures earlier Tuesday
picture of car
The company, formerly British Car Auctions, owns

Julian Carter, analyst for broking firm, Numis has described BCA's (LON:BCA), (formerly British Car Auctions) interim result as ‘strong’ with underlying earnings of £75.8mln up 18%, slightly ahead of its expectations.

Carter saw the most impressive element of the result as being clear evidence from volume metrics that BCA is growing its share of used car transactions.

This prompted the broker to raise its profit forecasts by 2-3%, while keeping its earnings per share (EPS) unchanged at 10.7p to reflect the higher fully diluted share count.

With regard to the group’s balance sheet, net debt was higher than expectations at £287.4 mln owing to higher capex and the timing of inventory build, a situation which is expected to reverse in the second half and help reduce year-end net debt to circa £260m.

Automotive Services stars

Focusing on divisional performances, the Automotive Services business grew underlying earnings by 13% assisted by an acquisition.

Numis has retained its 'buy' rating while raising its price target to 250p, up from 235p.

Earlier, the company, which owns the WeBuyAnyCar website, said sales broke through the £1bn barrier for the first time ever in the first half. The figure moved from £910mln in the comparable period last year to almost £1.2bn. 

Chairman Avril Palmer-Baunack said: "Against the changing landscape of the European automotive and transportation sector, I am very pleased with the first half performance, which was at the upper end of market expectations. BCA continues to grow and go from strength to strength."

View full BCA profile View Profile

BCA Marketplace PLC Timeline

© Proactive Investors 2019

Proactive Investors Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use