Car dealer and logistics firm Automotive Holdings Group (AHG) has lifted its full year profit by 12.5% to $72.9 million.
“The Group continues to focus on consolidating its acquisitions and Greenfield investments in the knowledge that, under our operating model, the dealerships will provide sustained strong contributions to AHG’s future performance,” says AHG managing director Bronte Howson.
The Perth-based company, which has a market capitalisation of $1.2 billion, increased its revenue by 9.8% to $4.73 billion for the 12 months ended June 30 and will pay a final dividend of 12.5¢ per share on October 2.
Howson notes, “the company is on the hunt for further acquisitions and has more than $100 million in headroom should the right ones come along.”
He said the company’s automotive retail division had outperformed the broader market even though there had been a slowdown at the group’s Western Australian dealerships in particular triggered by lower levels of activity in the mining and resources sector.
Howson says the broader Australian car market had slowed during 2013-14 but AHG had delivered higher sales and had achieved a strong performance in used vehicles, finance, insurance, servicing and parts.
“We’ve got a proven automotive model for a start,” he says.
The Automotive Retailing division increased its operating earnings before interest, tax and amortisation by 13.6% to $132.5 million.
In January 2014 AHG acquired the rights to distribute Husqvarna motorcycles across Australia and New Zealand. Howson says the strategic acquisition complements the Group’s KTM brand, with Husqvarna highly regarded as one of the oldest recognised brands in world motorsport.
“We look forward to Husqvarna contributing strongly to our business,” says Howson.
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