2 Cheap Cars Group (2CC) H1 2025 earnings summary

Executive summary

• Net profit after tax for HY25 was $1.67m, down from $3.2m in HY24, reflecting market volatility and economic downturn impacts.

• Revenue remained steady at $41.98m, but gross margin declined to $9.06m from $10.3m year-over-year.

• Vehicle sales increased 9% to 4,119 units, aided by resolution of prior shipping bottlenecks.

• Cost management and operational efficiency initiatives helped mitigate some margin pressure.

• Interim dividend of 3.06 cents per share declared, representing 60% of underlying NPAT.

Financial highlights

• Underlying EBITDA (including finance income) was $3.8m, down from $5.7m year-over-year.

• Underlying EPS was 3.7 cps, compared to 6.9 cps in the prior period.

• Cash and cash equivalents at period end were $2.54m, with stable debt levels.

• Inventory was well-managed to align with market demand, reducing excess costs.

Outlook and guidance

• The company adopts a conservative outlook for the second half, aiming to maintain first-half profitability amid ongoing volatility.

• Subdued trading in October and persistent market uncertainty heighten risk for H2 performance.

• Focus remains on operational discipline, cost management, and maintaining a resilient balance sheet.