Ann: 2CC Group Interim results for Half Year 2025, page-2

Tougher trading.

2CC remain profitable and paying a reasonable divie on 6th December..[approx 2.2cents net per share]

Balance sheet in excellent shape, and as well as holding a higher stock level than I expected they also hold $ 2.5mil cash.

Cash flow from operations remains positive.

Stock holding is $13.1 mil ..I did expect this to be around $10 to $11mil.

However with the higher stock level wii cover the further expansion in Auckland.
Yes are caught overstocked with hybrids.
That would explain why their stock level has not reduced as I thought it would,and why their margin is lower as they try to clear the hybrid stock.
Of the 763 total number of cars listed for sale 388 are Hybrids.So some way to go yet.
I expect they are concentrating on getting their stock balance under control.What level that will be I would guess down from just over 50% to between 20% and 25%.Therefore the number they hold needs to be halved. ie sell about 32 a month,compared with 700 cars they will sell a month over the next 6 months.
Achievable?.Yes.
I must admit if I was looking to replace my Nissan I would buy a hybrid.