Automotive Holdings Group – Australasia’s largest dealer group – has announced it has successfully completed a share placement it announced with its results Friday.
The placement raised $90 million dollars at $4.52 a share – a 6% discount on the company’s share price at the time of the announcement.
Outgoing managing director Bronte Howson says they are very pleased with the result.
“We are pleased with the support shown from both existing shareholders and new investors.”
The company is set to raise a further $20 million with a share purchase plan to allow eligible Australian and New Zealand shareholders to buy up to $15,000 worth of new shares in AHG each.
As part of its results, AHG announced a 2.2% increase in net profits to $90.1 million, on revenue of $5.63 billion.
Its automotive retail division was its strongest, with revenue up 10.6% and profits up 11.3% to $135.7 million.
“The automotive result is very pleasing considering the challenges of the Western Australian market and is a testament to AHG’s strong operating model and growth strategy,” Howson said in the results.
He says profits were boosted by the introduction of the ‘easyauto123’ fixed-price warehouse model in West Australia, which will be rolled out to the rest of the country over the next year.
It also confirmed further acquisitions – completing its purchase of the Audi Centre Newcastle, and Newcastle Skoda.
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