Sale-ready stock increases
2 Cheap Cars has reported its net profit after tax (NPAT) for August was about $330,000 as trading conditions remain volatile.
The company says the latest figure took its unaudited NPAT for the first five months of the 2027 financial year to $2.32 million.
Michael Stiassny, chairman, says: “To release processing capacity, improve stock flow and increase sale-ready inventory, periodically the company disposes of aged or uneconomic-to-repair vehicles via wholesale channels.
“In August, the net impact of these efforts was a loss of about $70,000 while sale-ready inventory was boosted from about 640 to now over approximately 720 vehicles.”
The trading update announced to the NZX on September 15 is the latest monthly bulletin from the company, which is the subject of a takeover bid.
Stiassny notes 2 Cheap Cars would not ordinarily provide updates based on a single month’s performance but is doing so to keep shareholders informed as the takeover offer remains on the table.
“The board cautions that results for any individual month, or other short period, do not provide a reliable basis from which to extrapolate the company’s performance for the remainder of the financial year,” he adds.
Sena & Co Ltd, the majority shareholder in 2 Cheap Cars, has offered to acquire all fully paid ordinary shares of the company it doesn’t already own.
An offer document was lodged on July 27 under the Takeovers Code, and shareholders have until the end of September 30 to respond to the 80c-per-share cash proposal.
