Australia’s largest car dealership group, Automotive Holdings Group (AHG), has generated a 12.5% rise in net profit to $72.9 million for 2013-14 and says even though new car sales have softened slightly across the industry, this year will still be the second highest on record.
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. This takes the full-year dividend to 21¢ per share, up from 20¢ per share in the previous year.
AHG managing director Bronte Howson says the company is on the hunt for further acquisitions and has more than $100 million in headroom should the right ones come along.
He notes 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 triggered by lower levels of activity in the mining and resources sector.
But the WA business had still produced a record result, with used cars remaining strong.
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 is the core part of AHG, it increased its operating earnings before interest, tax and amortisation by 13.6% to $132.5 million.
AHG has 89 dealerships and 156 dealer points, with its main presence in WA with 36 dealerships, 20 in NSW, 17 in Victoria, 10 in Queensland, and 6 in New Zealand.
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