AHG slumps to $233m loss

Automotive Holdings Group has suffered a loss of $232.6 million for the 2019 financial year, following major asset write-downs to its automotive and refrigerated logistics businesses during the period.

Takeover target AHG’s revenue edged up 0.7 per cent higher to $5.92 billion, but impairments totalling $281.3 million pushed the company’s bottom line deep in the red.

Last fiscal year, AHG made a $20.1 million profit.

AHG said if it removes the impairments and its loss-making refrigerated logistics business from calculations, profit totalled $58.7 million for this financial year.

This was $8.7 million above its previous guidance.

Earlier this month, the company said it would pursue the sale of its refrigerated logistics arm.

AHG is currently in the process of an $836 million takeover by Brisbane-based rival AP Eagers.

Earlier this week, AHG’s directors said they backed the takeover bid, which has regulatory and shareholder approval.

Shares in AHG were down 0.78 per cent to trade at $3.16 each at 11am AEST.