2 Cheap Cars Group (2CC) ASM Presentation 2024 summary

Leadership and governance

• Board chaired by Michael Stiassny, with David (Yusuke) Sena as CEO and executive director, and Angus Guerin as CFO.

• Shareholder resolutions included re-election of David Sena as director and authorization for the board to fix auditor's fees.

• Both resolutions passed with overwhelming shareholder support.

Financial performance and highlights

• FY24 revenue reached $86.8M, up 5% year-on-year; NPAT rose 383% to $6.2M, including $1.0M in restructuring and non-recurring costs.

• Dividend increased to 11.56 cps from zero; underlying EPS rose to 14 cps from 4.4 cps.

• Contribution margin grew 40% to $20.7M; gross margin improved to 24% from 18%.

• FY25 YTD (August) NPAT was $1.5M, down from $2.4M, with 3,475 vehicles sold (up 14%).

• Operating cash flow for FY25 YTD was $1.0M, down from $4.0M; gross margin at 21%.

Strategic initiatives and operational updates

• Focus on supply chain leadership, expanding hub capabilities, and leading in affordable EV and HEV supply.

• National retail footprint expansion, especially in Auckland, with new and upgraded branches.

• Emphasis on gross margin expansion through increased finance and insurance, digital applications, and cost management.

• Customer experience improvements via social engagement, customer care investment, and digital platforms.

• Investment in people, health and safety, and leadership development.