2CC Group Interim results for Half Year 2025

15 November 2024
Market announcement
NZX:2CC
Interim dividend declared despite market volatility impact on half year profit
2 Cheap Cars Group Limited (NZX:2CC) has reported net profit after tax (NPAT) of $1.67m for the
half year ended 30 September 2024 (HY25), down from $3.2m in HY24.
Summary of key results
(Figures quoted are in NZ dollars; comparisons are made against HY24)
 Revenue and income: steady at $41.98m
 Gross margin YTD: $9.06m, down from $10.3m
 Underlying EBITDA (including finance income): $3.8m, down from $5.7m
 Net profit after tax (NPAT): $1.67m, down from $3.2m
 Underlying net profit after tax (NPAT): $1.67m
 Underlying earnings per share (EPS): 3.7 cents per share (cps) vs 6.9 cps
 Vehicle sales: 4,119 units, up 9%
These results, though in line with guidance, highlight the prolonged economic downturn in New
Zealand and the consequent challenges faced by the automotive retail market.
Revenue and income remained steady, although a general decline in consumer spending and
intensified competition within the used vehicle sector put pressure on margins and impacted
profitability. Shifting customer demographics and preferences have also affected finance and
insurance penetration rates.
And while sales volumes have increased compared to the same period last year, it’s important to note
that the previous period was affected by shipping bottlenecks that were resolved in the first quarter of
FY24.
The Group's cost management and operational efficiency improvements, including insourcing
initiatives, have helped ease some margin pressure.
The Group ended the half year with $2.54 million in cash and stable debt. Inventory was well-
managed to match supply with shifting market demand, reducing excess costs. However, continued
profitability pressures and fluctuations in vehicle sales underscore the challenging market conditions.
Market overview
A substantial part of 2 Cheap Cars' business has historically been linked to immigration, driving the
company's strong FY24 performance. However, current low immigration levels and the severe
economic downturn are negatively impacting both our business and the broader automotive market.

To address these ongoing challenges, the company is focused on actions that ensure it remains
competitive. This strategy will likely involve maintaining lower margins for an extended period to
achieve greater market penetration and boost profitability.
CEO David Sena said, “Since founding this business in 2011, I have never witnessed market
conditions as volatile as those we currently face. The rapid shifts and unpredictability are truly
unprecedented in our company's history. While we have successfully maintained financial stability,
our focus on operational discipline and cost management is stronger than ever.”
Dividend
The Board has declared a HY25 interim dividend of 3.06 cents per share gross, representing 60% of
the underlying NPAT for the period. The record date for the dividend is 22 November 2024, with

payment scheduled for 6 December 2024. This decision reflects the Group’s commitment to delivering
shareholder value while maintaining prudent financial management.

Outlook
The sustained economic downturn, subdued trading results in October and persistent market volatility
has heightened uncertainty around second half performance. The company is adopting a
conservative outlook, with the objective of maintaining the profitability levels achieved in the first half,
while continually striving for further growth.
Chairman Michael Stiassny said that while the business was performing well in the circumstances, a
cautious approach was warranted given ongoing market unpredictability.
“The business is tightly managed and efforts to optimise operations and strengthen our balance sheet
provide a resilient foundation. However, we remain realistic about the hurdles ahead as economic
conditions continue to impact consumer sentiment and behaviour,” he said.
The figures included in this announcement are unaudited.
Ends
This announcement has been authorised by 2CC Chair, Michael Stiassny.
For shareholder enquiries, please contact
Angus Guerin
CFO
Mobile: +64 21 998 708
Email: angus.guerin@2ccgroup.co.nz
About 2 Cheap Cars Group
2 Cheap Cars Group is an integrated used automotive group.  We are vertically integrated from procurement in Japan through
to our retail branches nationwide.  Operating under the “2 Cheap Cars” brand, our Automotive Retail company is one of the
largest used vehicle sellers in New Zealand with 13 dealerships across the country. Our mission is to deliver on our promise...
2 Cheap Cars, driving better deals, every day.

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2 Cheap Cars Group Limited
Interim financial statements
For the 6 month period ended 30 September 2024

2 Cheap Cars Group Limited
Consolidated statement of profit or loss and other comprehensive income
For the 6 month period ended 30 September 2024
Unaudited Unaudited
NoteSEP 2024SEP 2023
$'000$'000
Revenue
Revenue and income41,978 41,903
Sundry income35 -
Expenses
Cost of sales(32,950) (31,593)
Administration expenses5(1,670) (1,473)
Advertising expenses(1,106) (741)
Depreciation expenses(1,279) (1,135)
Employee benefits5(1,907) (1,848)
Finance expenses(368) (391)
Property expenses(409) (335)
Profit before income tax32,324 4,386
Income tax expense(651) (1,228)
Profit for the period1,673 3,158
Other comprehensive income
Items that may be reclassified subsequently to profit or loss
Translation of foreign operations5 (165)
Total other comprehensive income5 (165)
Total comprehensive income for the period1,678 2,993
Earnings per share
Basic earnings per share 0.04 0.07
Diluted earnings per share 0.04 0.07
The accompanying notes form part of these interim consolidated financial statements
1

2 Cheap Cars Group Limited
Interim consolidated statement of financial position
As at 30 September 2024
UnauditedAudited
NoteSEP 2024MAR 2024
Note$'000$'000
Equity
Share capital39,344 39,344
Amalgamation reserve(35,956) (35,956)
Foreign currency translation reserve(150) (155)
Retained earnings16,907 17,141
Total equity20,145 20,373
Current liabilities
Trade and Other Payables1,487 2,259
Employee Benefit liabilities857 840
Borrowings1,500 1,500
Income tax Payable440 2,055
Derivative financial liabilities58 (13)
Related Party Payable10 10
Lease liability2,044 1,689
Other Current Liabilities23 36
Total current liabilities6,419 8,375
Non-current liabilities
Lease liability7,141 5,617
Total non-current liabilities7,141 5,617
Total equity and liabilities33,705 34,365
Current assets
Cash and cash equivalents2,541 4,673
Trade and other receivables428 514
Other current assets3,460 2,602
Loans receivable4675 990
Inventories13,147 13,873
Total current assets20,251 22,652
Non-current assets
Other Non Current Assets2,085 1,843
Plant, property and equipment1,886 1,787
Intangible assets67 75
Loans receivable4522 831
Deferred tax asset445 474
Right-of-use assets8,449 6,702
Total non-current assets13,454 11,713
Total assets 33,705 34,365
Approved on behalf of the Board on 14th November 2024
DirectorDate14-Nov-24
DirectorDate14-Nov-24
The accompanying notes form part of these interim consolidated financial statements
2

2 Cheap Cars Group Limited
Interim consolidated statement of cash flows
For the 6 month period ended 30 September 2024
Unaudited Unaudited
SEP 2024SEP 2023
$'000$'000
Cash flows from operating activities
Cash receipts from customers
41,988 41,620
Cash paid to suppliers and employees
(39,602) (36,773)
Proceeds from loan receivables
628 1,143
Interest received
62 100
Interest paid - retail operations
(57) (127)
Tax paid / received
(1,567) 256
Net cash inflow from operating activities1,452 6,219
Cash flows from investing activities
Proceeds from sale of property, plant and equipment
28 7
Purchase of property, plant and equipment
(288) (219)
Net cash outflow from investing activities(260) (212)
Cash flows from financing activities
Dividend paid
(1,907) -
Interest paid - finance operations
(275) (177)
Principal elements of lease payments
(905) (929)
Lease Guarantee
(242) (1,500)
Trade finance advance / (repayments)
- (910)
Net cash outflow from financing activities(3,329) (3,516)
Net increase/(decrease) in cash and cash equivalents
(2,137) 2,491
Cash and cash equivalents at beginning of period
4,673 3,767
Effect of exchange rate
5 (165)
Cash and cash equivalents at end of period2,541 6,094
The accompanying notes form part of these interim consolidated financial statements
4

2 Cheap Cars Group Limited
Consolidated statement of changes in equity
For the 6 month period ended 30 September 2024
Share
Capital
Retained
Earnings
Foreign
Currency
Translation
Reserve
Amalgamation
Reserve
Total Equity/
(Accumulated
Losses)
$'000$'000$'000$'000$'000
Balance as at 01 April 202339,344 12,794 (8) (35,956) 16,174
Profit for the Period- 6,241 - - 6,241
Translation of Foreign Operations- - (147) - (147)
Total Comprehensive Income for the Period- 6,241 (147) - 6,095
Share options recognised at fair value net of options lapsed- - - - -
Dividend Paid- (1,895) - - (1,895)
Total transactions with owners of the Group- (1,895) - - (1,895)
Balance as at 31 March 202439,344 17,140 (155) (35,956) 20,373
Balance as at 01 April 202439,344 17,140 (155) (35,956) 20,373
Profit for the period- 1,673 - - 1,673
Translation of foreign operations- - 5 - 5
Total comprehensive income for the period- 1,673 5 - 1,678
Share options recognised at fair value net of options lapsed- - - - -
Dividend Paid- (1,906) - - (1,906)
Total transactions with owners of the Group- (1,906) - - (1,906)
Balance as at 30 September 202439,344 16,907 (150) (35,956) 20,145
The accompanying notes form part of these interim consolidated financial statements
3

Notes to the financial statements
1. Reporting entity
2. Basis of preparation
(a) Statement of compliance
(b) Basis of measurement
• Derivative financial instruments
• Loans receivable (Note 4)
(c) Functional and presentation currency
(d) Going Concern
(e) Critical accounting estimates and judgements
(f) Changes in accounting policies
There were no accounting policy changes during the period.
These interim consolidated financial statements for the Group are presented in New Zealand dollars ($), which is the Group's functional and the Group's presentation
currency. All financial information presented has been rounded to the nearest thousand dollars.
2 Cheap Cars Group Limited (the Company) is a company domiciled in New Zealand.
The Company is incorporated in New Zealand, registered under the Companies Act 1993 and is publicly traded on the New Zealand Stock Exchange.
These interim consolidated financial statements comply with the requirements of the Companies Act 1993 and the Financial Markets Conduct Act 2013.
These interim consolidated financial statements as at 30 September 2024 comprise the Company and its subsidiaries:
2 Cheap Cars Limited, NZ Motor Finance Limited, 2CC International Limited, 2 Cheap Rental Cars Limited, Car Safety NZ Limited and Car Plus K.K. (collectively, the Group).
These unaudited interim consolidated financial statements have been prepared in accordance with Generally Accepted Accounting Practice in New Zealand (GAAP) and the
requirements of the Financial Markets Conduct Act 2013. They have been prepared in accordance with IAS 34 'Interim financial reporting'. They do not include all of the
required information in annual financial statements in accordance with IFRS and should be read in conjunction with the consolidated financial statements for the year ended
31 March 2024.
The interim consolidated financial statements have been prepared on the historical cost basis except that certain assets and liabilities are measured at fair value where
stated under their specific accounting policies.

The Directors consider that the Group is a going concern and the consolidated financial statements have been prepared on that basis.
The preparation of the consolidated financial statements, requires management to make judgements, estimates and assumptions that affect the application of accounting
policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates.
Estimates and underlying assumptions are reviewed on an on-going basis. Revisions to accounting estimates are recognised in the period in which the estimates are revised
and in any future periods affected.
4

3. Segment reporting
Description of segments
Reportable segments have been identified as follows:
Operating Segments
AutomotiveOther
As at 30 September 2024retailFinanceentitiesTotal
$'000$'000$'000$'000$'000
Revenue including interest41,788 169 5,406 (5,385) 41,978
Sundry Income35 - 26 (26) 35
Cost of sale(34,387) - (3,948) 5,385 (32,950)
Interest expense - finance- - - - -
Operating expense(4,667) (91) (1,613) - (6,371)
Operating profit2,769 78 (129) (26) 2,692
Dividend received- - - - -
Interest expense - trading(331) (51) - 14 (368)
Net profit before tax2,438 27 (129) (12) 2,324
NZ Motor
2 Cheap CarsFinance
As at 30 September 2023LimitedLimitedOthersTotal
$'000$'000$'000$'000$'000
Revenue including interest41,656 239 3,382 (3,375) 41,903
Sundry Income(4) - 133 (128) -
Cost of sale(32,514) 1 (2,489) 3,407 (31,593)
Interest expense - finance- (10) - - (10)
Operating expense(3,789) (139) (1,606) - (5,533)
Operating profit5,350 92 (580) (96) 4,767
Dividend received- - - - -
Interest expense - trading(289) (77) (6) (9) (382)
Net profit before tax5,060 15 (585) (105) 4,386
Management has determined the operating segments based on the components of the Group that engage in business activities, which have discrete financial information
available and whose operating results are regularly reviewed by the Group's chief operating decision maker. The chief operating decision maker has been identified as the
Board of Directors. The Board of Directors makes decisions about how resources are allocated to the segments and assesses their performance. Geographically the
Group's business activities are located in New Zealand.
Inter-entity
transactions
Elimination -
Inter-entity
transactions
5

4. Loans Receivable
Determination of fair values
Loans and receivables – At amortised cost book valueBook value
Loans and receivables – At fair value through profit and lossDiscounted cash flow
Fair value through
Amortised costprofit and loss Total
Opening balance (1 April 2023)
Gross carrying value2,241 1,769 4,010
Less: Impairment allowance (101) - (101)
Total Loans receivable2,140 1,769 3,909
Movements during the period
Advances of loans to customers (1,585) (864) (2,448)
Repayments of loans by customers442 - 442
Movement in accrued interest15 - 15
Movement in Impairment Allowance(7) - (7)
Fair value gain/(loss) on revaluation- (89) (89)
Total Movements(1,135) (953) (2,088)
Gross carrying value1,113 816 1,930
Less: Impairment allowance (109) - (109)
Total Loans receivable1,005 816 1,821
Closing balance (31 March 2024)
Current portion603 496 1,099
Non-current portion510 321 831
Less: Impairment allowance (109) - (109)
Total Loans receivable1,005 816 1,821
Fair value through
Amortised Costprofit and loss Total
Opening balance (1 April 2024)
Gross carrying value1,113 816 1,930
Less: Impairment allowance (109) - (109)
Total loans receivable1,005 816 1,821
Movements during the period
Advances of loans to customers - - -
Repayments of loans by customers(418) (268) (686)
Movement in accrued interest68 - 68
Other accrued repayments10 11 21
Movement in Impairment Allowance(4) - (4)
Fair value gain/(loss) on revaluation- (22) (22)
Total movements(344) (279) (624)
Gross carrying value773 537 1,310
Less: Impairment allowance (113) - (113)
Total loans receivable660 537 1,197
Closing balance (30 September 2024)
Current portion439 349 788
Non-current portion334 188 522
Less: Impairment allowance (113) - (113)
Total loans receivable660 537 1,197
The effective interest rate on Loans receivable at Amortised cost are 9.95% - 17.95%
5. Subsequent events
Loans receivable measured at amortised cost (financial assets which represent solely payments of principal and interest) have been impaired at 14.6%, using the expected
credit loss model.
Loans receivable measured at fair value (financial instruments that include waiver based clauses) are modelled at fair value and include an effective default risk impairment
rate of 9.8% which is factored into the valuation inputs.
The Company ceased additional lending in July 2022 with the remaining loan book now being wound down.
No significant events have occurred subsequent to the balance date.
6

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Results announcement



Results for announcement to the market
Name of issuer 2 Cheap Cars Group Limited
Reporting Period 6 months to 30 September 2024
Previous Reporting Period 6 months to 30 September 2023
Currency NZD
Amount (000s) Percentage change
Revenue from continuing
operations
$41,978 0%
Total Revenue $42,013 0%
Net profit/(loss) from
continuing operations
$1,673 -47%
Total net profit/(loss) $1,678 -44%
Interim/Final Dividend
Amount per Quoted Equity
Security
$0.02200000
Imputed amount per Quoted
Equity Security
$0.00855556
Record Date 22/11/2024
Dividend Payment Date 06/12/2024
Current period Prior comparable period
Net tangible assets per
Quoted Equity Security
$0.43 $0.41
A brief explanation of any of
the figures above necessary
to enable the figures to be
understood
Please refer to accompanying Results Announcement
Authority for this announcement
Name of person

authorised
to make this announcement
David Sena, CEO
Contact person for this
announcement
Angus Guerin, CFO
Contact phone number 021 998 708
Contact email address angus.guerin@2ccgroup.co.nz
Date of release through MAP

15/11/2024

Unaudited financial statements accompany this announcement.

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Template
Distribution Notice

Updated as at June 2023



Please note: all cash amounts in this form should be provided to 8 decimal places, including zeros (ie 0.01001000)

Please do not amend or delete individual rows. As this template relates to prescribed content, changes to content
should only be made where it is clearly indicated that this is permitted, otherwise, if an Issuer considers a particular
element does not apply, mark the row as N/A, Any other changes to this prescribed form must first be approved by
NZX as required under NZX Listing Rule 3.26.1.

Section 1: Issuer information
Name of issuer 2 Cheap Cars Group Limited
Financial product name/description Ordinary Shares
NZX ticker code 2CC
ISIN (If unknown, check on NZX
website)
NZNZAE0001S5
Type of distribution
(Please mark with an X in the
relevant box/es)
Full Year Quarterly
Half Year X Special
DRP applies
Record date 22/11/2024
Ex-Date (one business day before the
Record Date)
21/11/2024
Payment date (and allotment date for
DRP)
06/12/2024
Total monies associated with the
distribution
1

$ 1,002,199.00
Source of distribution (for example,
retained earnings)
Retained Earnings
Currency New Zealand Dollar
Section 2: Distribution amounts per financial product
Gross distribution
2
$ 0.03055556
Gross taxable amount
3
$ 0.03055556
Total cash distribution
4
$ 0.02200000
Excluded amount (applicable to listed
PIEs)
$ N/A
Supplementary distribution amount $ 0.00388235


1
Continuous issuers should indicate that this is based on the number of units on issue at the date of the form
2
“Gross distribution” is the total cash distribution plus the amount of imputation credits, per financial product, before the deduction of
Resident Withholding Tax (RWT).
3
“Gross taxable amount” is the gross distribution minus any excluded income.
4
“Total cash distribution” is the cash distribution excluding imputation credits, per financial product, before the deduction of RWT.
This should include any excluded amounts, where applicable to listed PIEs.

Section 3: Imputation credits and Resident Withholding Tax
5

Is the distribution imputed

Fully imputed


If fully or partially imputed, please
state imputation rate as % applied
6

28%
Imputation tax credits per financial
product
$ 0.00855556
Resident Withholding Tax per
financial product
$ 0.00152778


Section 5: Authority for this announcement
Name of person

authorised to make
this announcement
David Sena, CEO
Contact person for this
announcement
Angus Guerin, CFO
Contact phone number 021998708
Contact email address Angus.guerin@2ccgroup.co.nz
Date of release through MAP

15/11/2024






5
The imputation credits plus the RWT amount is 33% of the gross taxable amount for the purposes of this form. If the distribution is
fully imputed the imputation credits will be 28% of the gross taxable amount with remaining 5% being RWT. This does not constitute
advice as to whether or not RWT needs to be withheld.



6
Calculated as (imputation credits/gross taxable amount) x 100. Fully imputed dividends will be 28% as a % rate applied.