AP Eagers is on track for another record half-year profit to June 30, 2014.
The car and truck dealership and automotive services group expects net profit after tax to be roughly $33.5 million, compared to $31.4 million for the corresponding period of 2013 – an increase of 7%.
The bumper profit comes on the back of a before tax figure of $46 million, up 10% on the same half last year.
The company has been acquisitive this calendar year, not least having picked up south-west and central Queensland’s Craig Black Group, which includes Western Fleet Services, and Ian Boettcher Motors.
At its annual meeting in May, chairman Tim Cromelin and chief executive officer Martin Ward said these buys were likely to boost annual revenues by $400 million, or 15%. In May, Ward said the purchase price was about $50 million, with the Black purchase expected to be finalised in the next two months.
AP Eagers new truck sales account for 5% of its new vehicle sales and 4% of its used sales. Management says the used car and truck segment – and optimisation of the parts distribution businesses – will be a priority, while noting recent truck parts and service performance has been good.
As an aside, AP Eagers has revealed that it now takes 26 weeks of average wages to buy a Holden.
“It takes an average 26 weeks for a PAYE toiler to buy a Holden. In the early 1990s it took 43 weeks, and buyers now get much more for their money,” says AP Eagers.
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