Automotive Holdings Group Limited today announced a $20.2 million net profit after tax for the year to 30 June, 2006, AHG's first full year report as a listed company.
Automotive Holdings Group Limited today announced a $20.2 million net profit after tax for the year to 30 June, 2006, AHG's first full year report as a listed company.
The company said its $20.2 million profit was ahead of the 2005 prospectus forecast of $16.9 million and the June 2006 guidance of at least $19.5 million.
Group revenue for the year was $1.619 billion, up 2.1% on the $1.587 billion prospectus forecast.
EBITDA for the period was $52.7 million, 11.2% above the prospectus forecast of $47.4 million.
Earnings per share (based on 140 million shares on issue at 30 June 2006) was 14.43 cents and the directors have declared a final fully franked dividend of 6 cents, lifting the full year distribution to 10 cents (fully franked). The dividend record date is 3 October 2006 and the payment date is 13 October 2006.
AHG chief executive Bronte Howson said the higher than expected profit had been driven by strong trading conditions across the group's activities.
"We are pleased with the performance of the automotive retail and logistics divisions, both of which operate in highly competitive environments."
Mr Howson said AHG's automotive retail division has continued to perform well despite external pressures such as rising fuel costs and higher interest rates.
"We believe the AHG model in automotive retailing is strong, with multiple revenue streams and an ability to perform through changes of consumer sentiment and economic volatility," he said.
AHG's automotive retail division reported EBITDA of $43.0 million (prospectus $38.1 million) on revenue of $1.416 billion ($1.404 billion).
The EBITDA margin in the automotive retail division of 3.04% exceeded the prospectus forecast of 2.7%.
AHG's logistics division - comprising Rand Transport, AMCAP and KTM Sportmotorcycles distribution - reported EBITDA of $9.7 million (prospectus $9.3 million) on revenue of $202.6 million ($182.3 million).
The EBITDA margin achieved in the logistics division of 4.8% (prospectus 5.0%).
On 30 June, AHG announced the proposed acquisition of the McGrath Lander Group in New South Wales. The company is performing due diligence and the acquisition is expected to be completed in October, subject to final structuring and the approval of motor vehicle manufacturers.
Other new opportunities commencing during the current financial year include the appointment of AHG as the distributor for KTM Sportmotorcycles in New Zealand with effect from August 2006 and the commissioning of Rand Transport's new 24,000 pallet cold storage and distribution facility in Homebush NSW, which is scheduled for completion in March 2007.
Prestige Hino is expected to make a positive contribution to the group's results in the current financial year, assisted by the completion of its new purpose built facilities in Dandenong Victoria in November 2006.
Mr Howson said AHG had started the 2007 financial year strongly, with buoyant activity across the group and that the group continues to assess opportunities that fit the company's acquisition criteria, including being earnings accretive and synergistic with existing operations.
"We look forward to delivering to our shareholders growth in revenue and earnings in 2006-07 and beyond," he said.
