2 Cheap Cars Group (2CC) H1 2026 earnings summary

Executive summary

• Revenue for the six months ended 30 September 2025 was $39.77 million, down from $42.01 million year-over-year, with vehicle sales down 13% to 3,604 units.

• Net profit after tax for the period was $1.01 million, a decrease from $1.67 million in the prior year, reflecting lower sales volumes and margin pressure.

• Total comprehensive income was $0.88 million, reflecting a negative foreign currency translation adjustment.

• Interim dividend of 2.15 cents per share declared, representing 70% of underlying NPAT.

• Operational adjustments included recruiting a senior Brand and Marketing Manager and shifting to a hybrid compliance model.

Financial highlights

• Gross profit declined as cost of sales was $31.91 million versus $32.95 million year-over-year, with gross margin rate decreasing to 19%.

• Underlying EBITDA was $3.1 million, down from $3.8 million.

• Basic and diluted earnings per share were $0.02, down from $0.04 in the prior year.

• Operating cash flow before changes in working capital was $1.92 million, up from $0.82 million year-over-year.

• Cash and cash equivalents at period end were $4.6 million, up from $2.54 million a year earlier.

Outlook and guidance

• Market conditions expected to remain challenging through the second half of FY26, with full-year profitability anticipated to be lower than FY25.

• Gradual recovery in demand expected, but trading in H2 FY26 not anticipated to materially exceed H1.

• The loan book continues to be wound down, with no new lending since July 2022.

• Directors confirm the group remains a going concern.