Automotive Holdings Group Ltd has announced a strong start to the 2008 financial year, posting unaudited revenue of $1.14 billion for the four months to October 31 2007, up 89.7 per cent on revenue from the corresponding period in 2006-07.
Speaking at the Company's Annual General Meeting in Perth today, AHG Managing Director Bronte Howson said the increased revenue reflected both the effect of 2007 acquisitions and a strong performance from AHG's existing businesses.
"We are very pleased with the performance of all of our divisions which continue to trade well and show all signs of continued good performance through the remainder of the financial year," said Mr Howson.
"We are particularly pleased that the integration of the major acquisitions of FY2007 -McGrath Lander in NSW and Zupps in Queensland - which are now bedded down with their operations integrated into the AHG group.
"Last year the McGrath Lander acquisition represented 7 months trading and the Zupps acquisition 2 months trading. This year will see a full year contribution from both these acquisitions.
"Aside from strong operating performances from the operations in their own right, in the past few months we have seen significant benefits flow through from McGrath Lander and Zupps in terms of synergies and scale benefits.
Mr Howson said the Group's automotive retailing division had achieved record new car sales in the first 4 months of the 2007/08 financial year, reflecting strong activity in each of the main markets of Western Australia, Queensland and NSW.
"It is clear that demand remains strong in the automotive retailing market and our expectations are that this will ontinue at least through to the end of the financial year," he said.
"Australian new car sales are set to push through the 1 million mark for the 2007 calendar year and have another great year in 2008.
"AHG's strategy is to build its share of that rising market even further through acquisition of individual dealerships and small dealership groups and through continuation of greenfield developments."
Mr Howson said AHG continued to put a major focus on profitable expansion and the preservation of divisional operating margins through periods of high growth.
"Our acquisitions are in the process of being integrated, our organic growth is strong and there is abundant opportunity for further acquisitions in 2008 and beyond," said Mr Howson.
"We look forward to the remainder of the financial year with great optimism."
