29/08/2008 - 11:01

AHG posts record net profit of $53m

29/08/2008 - 11:01

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Automotive Holdings Group Ltd has increased its annual profit by 76 per cent but warns that softer economic conditions will be a challenge this year.

AHG posts record net profit of $53m

Automotive Holdings Group Ltd has increased its annual profit by 76 per cent but warns that softer economic conditions will be a challenge this year.

Australia's largest automotive retailer posted a net profit of $53.19 million for the 12 months to June 30, up from $30.17 million for the previous year.

The result included a $4.74 million tax gain relating to GST holdback claims made for the fiscal 2000 to 2005 years.

Further claims of about $2.5 million net of costs and tax were made in 2008/09.

The company said its automotive retailing and logistics divisions performed strongly amid challenging market conditions.

Underlying group revenue for the year was up 53 per cent to $3.4 billion from $2.2 billion previously.

Managing director Bronte Howson said the performance was strong amid a climate of high interest rates, rising fuel prices and a decline in consumer confidence.

Mr Howson said the company would continue developing greenfield automotive retailing sites as opportunities arose.

The company said its New Zealand operation had a disappointing year, with the market soft and declining.

"Management will continue to monitor the New Zealand economy and react accordingly," it said.

The company declared a final dividend of 10 cents, taking total annual payout to 17.25 cents, up 38 per cent on the previous year.

Shares in Automotive Holdings ended steady at $1.90.

 

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