Just Car Clinics - 57.5p

WE first recommended shares in this AIM listed company back in September 2005.

The share price at that time was 35.5p and since then we have tipped the company a further two times, at 39p in April 2006 and lastly at 44p in September 2006. Since the last recommendation the share price soared to 121p in July of last year, a rise of some 240 per cent.

In current markets, the share price has now slipped back and so, once again, looks very good value as the group should be impervious to any economic slowdown.

For those of you who are not familiar with the company, Just Car Clinics was originally the car repair business of Dixon Motors and was formed from a management buyout in 2003, joining AIM at the same time.

It has since grown the number of sites from which it operates, as well as adding a training and support centre in Goole. Each site has its own general manager who reports to a designated Regional Support Manager, ensuring high levels of customer service and agreed financial targets are met.

The company currently employs 500 staff operating 19 collision and repair centres located all over the north of England. This makes Just Car Clinics the second largest independent chain of collision repair centres in the UK and they specialise in accident damage to cars, motorcycles and vans. Work partners include some of the biggest names in the insurance industry, including Royal Bank of Scotland, Norwich Union, Fortis and AXA as well as a number of well-known car manufacturers.

The company also offers additional services such as valeting and the fitting of parking sensors to prevent small bumps and scrapes.

In the six months to the end of June last year, the company announced strong interim results. Turnover was up 34 per cent to £18.5 million (from £13.56 million in 2006) with like for like turnover growth of 11 per cent.

Profit margin also improved from 2.9 per cent to 3.1 per cent, meaning profit before taxation was up 43 per cent.

Underlying earnings per share were up 27 per cent to 2.7p and the company also announced that it was to make its maiden dividend payment of 0.5p per share.

Strong interim results and the ongoing expansion programme both organically and by acquisition lead us to believe that the fall in share price has been overdone and that the shares look good value at this price. We rate them a BUY. WARNING: Opinions expressed are the writers' judgments at the time of writing. The information does not constitute a personal recommendation and readers should seek their own professional advice as to the suitability of the investments.