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BCA Marketplace revenues up in first interim as it consolidates its acquisitions

Avril Palmer-Baunack

BCA Marketplace saw its revenues increase by 20% to £525.8 million in its first interim after listing on the stock exchange and acquiring SMA for £42m this summer.

The company posted a statutory operating profit of £1.3m for the nine months ended October 4, 2015. BCA said its operating profit is stated after acquisition costs of £22.7m, amortisation of acquired intangibles £17m and other non-recurring costs at £1.3m).

BCA’s UK remarketing volume increased by 10% to 394,000 vehicles over the prior period and its Webuyanycar.com division increased volumes by 16.9% to 83,000.

Avril Palmer-Baunack, BCA Marketplace executive chairman, said: “We have delivered organic growth in volume and a trading performance at the upper end of market expectations.

“The complementary acquisitions completed to date, allied with future plans will enable us to deliver an enhanced package of services to our customers and will fuel the future growth of the business in line with our stated strategy.

"All of the acquired businesses have experienced and dedicated operational management and we will continue to integrate and develop these teams as we build the business.”

Palmer-Baunack said the second half of trading started well as BCA has won a new manufacturer tender and she said the board remains confident for its full year results and for next year.

BCA Marketplace has had an extremley busy six month period, listing on the stock market after a reverse takeover in March this year, before acquiring SMA and Stobart Automotive in the summer.

The SMA acquisition is currently subject to a phase 1 review by the Competition and Markets Authority ("CMA").  On November 17, the CMA decided that the acquisition may result in a substantial lessening of competition in the Newcastle area. BCA is expected to sell off its SMA business in Newcastle to a competitor, but Palmer-Baunack said: "We are working with the CMA to identify undertakings to address these competition concerns."

Analyst view

Mike Allen, Zeus Capital head of research, said: "The underlying picture is encouraging. The overall trading performance is said to be at the upper end of expectations, with H2 also starting well backed with the award of a new manufacturer tender contract. We edge up our 2016-2018E EBITDA forecasts to reflect this momentum and acquisitions made to date.

"We remain comfortable with our underlying assumptions and believe the group is on track to deliver cash generative earnings."

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