Automotive retailer and logistics group Automotive Holdings Group Ltd posted a first half net profit of $9.5 million, with the company believing it is on track to reach the prospectus forecast full year 2006 earnings of $16.9 million.
Automotive retailer and logistics group Automotive Holdings Group Ltd posted a first half net profit of $9.5 million, with the company believing it is on track to reach the prospectus forecast full year 2006 earnings of $16.9 million.
This represents AHG's first reporting period since it listed on the ASX in November last year.
The company's share price at 1030 hasn't moved from its opening price of $1.19.
The full AHG release is below:
AHG ANNOUNCES STRONG FIRST HALF; ON TRACK TO MEET FULL YEAR FORECASTS
Highlights
- NPAT of $9.5 million on group revenue of $795.1 million
- EBITDA of $25.1 million
- Earnings per share of 6.82* cents and a 4 cent interim dividend declared
- Strong performance across automotive retailing and logistics divisions
- Commenced implementation of Australia-wide growth strategy
- Major logistics expansion go-ahead for Sydney
- Major automotive retailing launch in Victoria
- Positive outlook for second half
- On track to meet full year prospectus forecasts
Automotive Holdings Group Limited (ASX:AHE), the diversified automotive retailing and logistics group, today announced a net profit after tax of $9.5 million for the half year to December 2005, AHG's first reporting period as a listed entity.
Group revenue for the period was $795.1 million and EBITDA was $25.1 million.
Earnings per share (*based on the number of shares on issue at 31 December 2005) was 6.82 cents and the Directors have declared an interim dividend of 4 cents per share.
Chief Executive Officer Bronte Howson said AHG was pleased with the first half result, had started the second half strongly and was well positioned to meet the full year prospectus earnings forecast.
AHG listed on the Australian Stock Exchange in November last year after a $45.7 million capital raising.
In its prospectus, AHG forecast full year earnings for FY06 of $16.9 million on group revenue of $1.587 billion.
Full year EBITDA was forecast at $47.4 million and earnings per share at 12.14 cents.
"We are pleased with the December half result and continue to feel comfortable with our full year forecast of
a net profit of $16.9 million," said Mr Howson.
"The performance of both our automotive retailing and logistics divisions was pleasing, despite strong
competition and complex trading conditions in some sectors.
"We were also pleased to have protected operating margins through the period in both our operating
divisions."
AHG's automotive retailing division reported EBITDA of $19.4 million on revenue of $686 million for the
December half - an EBITDA margin of 2.8% (compared to forecast 2.7% for the full year in FY06).
The logistics division - which includes Rand Transport, AMCAP and KTM Sportmotorcycles - recorded
EBITDA of $5.6 million on revenue of $109 million - a margin of 5.2% (5.1% full year forecast).
Mr Howson said AHG has performed strongly in both its automotive retail and logistic divisions, with organic
growth complemented by strategic initiatives.
In November, logistics subsidiary Rand Transport committed to a major expansion of its NSW cold storage
and distribution capability with a new 24,000 pallet facility at Homebush in Sydney to meet growing demand
from Rand customers.
Construction of the facility is scheduled for completion in March 2007. Rand will lease the premises from
developer Macquarie Goodman for an initial 15 year term.
Also in November, AHG's automotive division secured the flagship Hino truck dealership in Dandenong,
Victoria.
AHG was selected by Hino Australia as the preferred operator for the dealership, which controls and services
the biggest market area in Victoria. Initial trading in the first months of operation has been very encouraging.
"When we came to the listed market, we flagged our intention to grow our business nationally where new
initiatives fitted our business model, where we could add substantial value and where those initiatives were
earnings accretive," said Mr Howson.
"The Rand expansion in Sydney and the Prestige Hino Dandenong truck dealership are the types of initiatives
that fit the AHG model well."
Mr Howson said AHG continued to assess a number of growth opportunities.
