Results posted today by ISDX listed company NCI Vehicle Rescue look positive. (£OFEX:NCI)
* Turnover (commission and fees) GBP8.28m (2013: GBP6.60m) - up 25.3%
* Gross profit GBP 5.28m (2013: GBP4.10m) - up 29. 0%
* Record profit before tax GBP1.25m (2013: GBP974,486) - up 28.0%
* Basic earnings per share 9.21 pence per share (2013: 6.43 pence per share)
- up 43.2%
Full results can be found at:
http://www.isdx.com/forbrokers/tradingdata/announcements/AnnouncementDetails.aspx?newsid=2531841
The Business
NCI Vehicle Rescue don't just do what their name implies, they have more strings to their bow. Yes, one segment of the business is vehicle breakdown cover. The others are Motor Insurance, Pet Insurance, Claims Administration.
The Market Cap is currently £10.9M, so this is a tiddler by most standards and is listed on the ICAPs Securities and Derivatives Exchange (ISDX).
The Positives
These results will improve the already attractive ratio's in Stockopedia. Until the latest results are processed, the StockReport will not reflect the improved figures. The P/E seems low for a company that is growing revenue by >20% and profits > 20% and EPS by >40%. On an EV/EBIT ratio it is even more attractive. The company has grown cash levels and remains free of debt. There is a moderate dividend too, of which 1.3p/share will be ex-div on 19-Sept-2014 for payment around 30-Sept-2014
| Item | vs H1 Results 2014 (ttm) | vs 2014 Full Year Results |
| P/E Ratio | 12.9 | 10.2 |
| EV/EBIT | 8.3 | 6.6 |
| Sales Growth | 20.6% | 25.4% |
| EPS Growth | 21.2% | 48.3% |
| Cash | £2.13 M | £2.7 M |
| Dividend Yield | 1.67% | 1.77% |
The stock ranks are currently
Value 75;
Quality 98;
Momentum 30.
StockRank=76.
(Growth Rank=87).
I'd expect the value rank to improve following todays results. Momentum Rank will improve if there is any sort of positive price movement following these results. Growth rank should also improve. Piotroski F-score was an 8 with Asset Turnover being the only fail - this should turn positive as it looks to be close to 2.0 vs 1.83. (I don't know if any of the current positives will turn negative though). Magic formula score is 94% (although not officially as it's a microcap and therefore outside of Greenblatts scoring universe).
The Negatives
These shares are traded on ISDX and not all account give access - and then it may not be direct access (place an order without being absolutely sure of the price you are getting).
They are rather illiquid - volume below 4000 average traded daily over last 3 months. This may be about to change in the short-term as todays volume was 41,800 (x10 recent levels). I expect more…
