MotorCycle Holdings has recorded a net profit of $8 million for the 12 months to end June 2016, up 74% from the 2015.
The strong profit in its maiden financial results as a listed company was driven by solid growth in the sale of motorcycles, which increased by 13% to 13,931 units for the year, exceeding the prospectus forecast by almost 500 units.
New motorcycle sales increased 17.5% to 7538 units, which was well above the market growth of approximately 1.8%. Used motorcycle sales grew by 8.5% to 6393, which again exceeded market growth, estimated to be about 1.4% of the main market in Queensland.
The better than expected sales were due to a number of factors including benign weather conditions in the first three months of the year, an increased focus on used motorcycle sales across the company’s 24 dealerships, and in particular a strong performance by two new dealerships in Canberra and Campbelltown acquired in the second half of 2015.
These two dealerships together increased sales by $26.6 million in 2016, while organic growth at its pre-existing 22 dealerships delivered $9.4 million in increased sales.
Revenue for the year totaled $209.3 million, which was up 21% from $173.3 million in 2015, and well above the revised pro-forma prospectus forecast of $196.9 million.
After operating costs of $196.5 million, which exceeded prospectus forecasts due to higher sales and stock turnover, earnings before interest and tax was $12.8 million, which was up 64% from 2015 and equivalent to a healthy ebita margin of 6.1%.
After tax of $3.6 million, the bottom line result was profit of $8 million.
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