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BCA Marketplace (BCA)

Business description

In the UK, BCA Marketplace owns and operates the largest used vehicle exchange and is the leading provider of vehicle buying services through We Buy Any Car. BCA also provides exchange and buying services across Europe and its Automotive Services division provides transport, storage and technical expertise.

Y/E Mar Revenue (£m) EBITDA (£m) PBT (£m) EPS (p) P/E (x) P/CF (x)
2017A 2029.7 135.6 97.4 9.1 22.4 18.3
2018A 2431.5 159.5 120.9 11.4 17.9 9.3
2019E 2849.2 170.8 129.0 12.4 16.4 13.3
2020E 3083.9 183.9 139.1 13.4 15.2 9.9

Last updated on 05/12/2018

Investment summary

Interim results indicate the resilience of BCA’s model in the face of still challenging UK market fundamentals. The company delivered top-line growth of 22% and adjusted EBITDA growth of 12.7% and is able to maintain its expectation that market forecasts for FY19 will be achieved. While the uncertainties in new car markets persist, largely due to supply-side constraints and the looming Brexit, we maintain our EBITDA estimates for this year and next despite some divisional mix changes. The FY20 P/E multiple of just 15.7x is undemanding in our view given BCA’s investment proposition delivering healthy cash flows.

Last updated on 05/12/2018

Industry outlook

BCA is not involved in the sale of new cars and light commercial vehicles, although it does supply services such as transportation and inspection to the segment. However, there are clearly some trends that flow from new car markets to used vehicle supply such as part-exchange, lease contract expirations and personal contract plans (PCPs). In fact, BCA provides a unique “dock to de-fleet” through-cycle support proposition in the UK vehicle market.

Last updated on 29/11/2018

Key management

Tim Lampert, CFO & Director
Avril Palmer-Baunack , Executive Chairman
Tim Richmond, Investor Relations

Company address

Haversham House, Coronation Business Park
Kempston Hardwick, Bedford
MK43 9PR
United Kingdom
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