16/02/2009 - 08:38

AHG sinks to $1.8m loss

16/02/2009 - 08:38

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Perth-based car retailer and logistics company Automotive Holdings Group has posted a $1.8 million loss for the half-year to December 2008, as a result of a modest decline in operating profit combined with impairments and write-downs.

AHG sinks to $1.8m loss

Perth-based car retailer and logistics company Automotive Holdings Group has posted a $1.8 million loss for the half-year to December 2008, as a result of a modest decline in operating profit combined with impairments and write-downs.

 

An AHG statement is pasted below:

Highlights
-Underlying NPAT from continuing operations of $18.2 million (77% pcp)
-NPAT of $21.5 million (including GST holdback refund, before impairment and write downs)
-Impairment and write downs - $23.3 million (pre-tax)
-Statutory net loss $1.8 million
-Group revenue of $1.6 billion (94% pcp)
-EBITDA¹ of $50.4 million, (90% pcp)
-EBITDA margin¹ 3.15%, (3.28% pcp)
-Interim dividend of 4 cents fully franked (7.25 cents pcp)
-Solid operating performance in automotive retailing in volatile, difficult market conditions
-Continued strong performance from logistics division
-Stable outlook for second half
Automotive Holdings Group, Australia's largest automotive retailer, today announced a net operating profit after tax for the six months to 31 December 2008 of $18.2 million.

 

Following adjustment for $23.3 million (pre-tax) in impairment and write downs and a GST holdback refund of $4.75 million (pre-tax), the Company reported a statutory net loss of $1.8 million.

The Board of Directors believe that the impairment and write down adjustments are appropriate given the decline in overall market conditions, especially in the automotive sector, and the impact of these market conditions on the value of some of its investments.

The company has not disclosed the details of the impairment and write down adjustments.

The underlying performance of the Group has been solid with AHG posting a net operating profit after tax of $18.2 million (77 per cent of the previous corresponding period (pcp)) on Group revenue of $1.6 billion, 94 per cent of pcp.

Pre-impairment and write downs, EBITDA was 90 per cent of pcp at $50.4 million, while group EBITDA margin was relatively stable at 3.15 per cent, a slight reduction from 3.28 per cent previously.

Underlying EBITDA for the automotive retailing division was 77 per cent of pcp at $34.8 million on revenue of $1.4 billion (92 per cent pcp).

The New Zealand retailing operations continue to be reviewed as AHG evaluates its options in what is a very difficult retail market.

AHG's logistics division contributed EBITDA of $15.6 million, 145 per cent on pcp in the first half of fiscal 2008, on revenue of $205.5 million (112 pcp).

Earnings per share from continuing operations (pre impairment and write downs) were 9.5 cents (12.4 cents previously) and the Directors have declared a fully franked interim dividend of 4 cents (7.25 cents previously).

The Board has taken a cautious view in declaring this interim dividend, which is less than that previously declared, in light of the current economic climate. The Board will review the current dividend policy when greater clarity of the impact of the economic downturn is known.


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