2 Cheap Cars Group (2CC) H2 2025 earnings summary

Executive summary

• Revenue declined to $80.2m for FY25, down 7.6% year-over-year, with net profit dropping to $3.3m from $6.2m.

• Gross margin decreased as cost of sales remained high; EPS halved to $0.07.

• Cash flow from operations remained positive at $6.7m, with cash reserves increasing to $5.3m.

• Dividend payout increased to $2.9m, up from $1.9m in the prior year.

• Carbon credits recognised as intangible assets, contributing $1.7m to sundry income.

Financial highlights

• Revenue: $80.2m (FY24: $86.8m); Net profit: $3.3m (FY24: $6.2m).

• Gross margin: $16.0m (FY24: $20.7m); Operating profit before tax: $4.6m (FY24: $8.7m).

• EPS: $0.07 (FY24: $0.14); Dividends paid: $2.9m (FY24: $1.9m).

• Cash and cash equivalents: $5.3m (FY24: $4.7m).

• Inventory at year-end: $14.9m, with $12.9m pledged as security.

Outlook and guidance

• No formal forward guidance provided; management expects carbon credits to be fully utilised within 18 months.

• Loan book continues to wind down, with no new lending since July 2022.

• No significant post-balance date events reported.