2 Cheap Cars Group reports record full year profit

Used car dealer 2 Cheap Cars Group (2CC) has defied wider pressure on consumer retail spending to report a record full year profit, despite a 2 percent drop in the number of vehicles sold.

The company’s full year net profit for the year ended March was just over $6 million, which was nearly five times last year’s near $1.3m gain.

Revenue rose 5 percent while gross margins rose 6 percentage points to 23 percent.

“Despite wider pressure on consumer retail spending, 2CC is in great shape,” chief executive Paul Millward said.

“The company’s strong brand position is now well supported thanks to the work undertaken to ensure robust vehicle supply, attract capable people and a disciplined approach to revenue and cost management. And, the decision to focus on gross margin means the business is now on a stable footing with a clear growth strategy.”

He said the company was well placed with $13.9m in inventory, which was a $5.5m improvement on the year earlier, which had been hit by shipping constraints.

Millward said the company remained focus on further improvements on gross margin and market share.

The company will pay a full year dividend of 11.56 cents per share.

According to the news on Radio New Zealand

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