Automotive Holdings Group (AHG) has announced a record net profit after tax of $38.5 million for the six months to December 31, 2012 – with the automotive retail segment the start performer.
Revenue for the automotive retail segment in the first half of the financial year was up 15.4% to a record $1.775 billion.
AHG managing director Howson says the result reflected solid growth in the company’s automotive and logistics divisions.
“This is a strong result in automotive, based on some solid fundamentals in terms of consumer demand, manufacturer incentives and the strong Australian dollar,” says Howson.
“We’ve experienced organic growth across the automotive division; in new and used passenger and
truck sales, service, parts and finance.”
During the half‐year AHG completed the acquisitions of Coffey Ford in Victoria; Daimler Trucks in Newcastle and Brisbane; Newcastle Iveco and Newcastle Hino. The company also progressed its greenfield development sites at Castle Hill in NSW and South Melbourne in Victoria.
“At Castle Hill we are pleased with the contributions from our Holden/HSV and Hyundai dealerships, while we’re commencing service workshops and parts sales for Holden/HSV and Hyundai at South Melbourne with construction of both new dealerships expected to be completed in the first half of2013.”
The group has also recently announced further significant acquisitions in Victoria, with the purchase
of the Bayside and Peninsula Groups of dealerships located on the Mornington peninsula.
Overall group results were achieved on record revenue of $2.17 billion. EBITDA improved 10.7% to a record $85.9 million.
Operating earnings per share were 14.8 cents and the directors have declared a
fully franked interim dividend of 8.0 cents per share (7.0 cents previously). The record date is
March 18, 2013 with the dividend payable on April 3, 2013.
“KTM produced record motorcycle sales and a record profit contribution,” says Howson.
The automotive segment of the group is positioned to deliver a solid second half result supported by a strong order bank and industry sales forecast of 1.07 to 1.1 million units for 2013.
“We’ll focus on ensuring our new dealerships are integrated into AHG’s existing management and operating structures to meet our performance standards, drive earnings and deliver increased value to shareholders. We will also continue to explore other opportunities that meet our growth and financial criteria,” Howson says.
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