Perth-based Automotive Holdings Group has delivered a lower full-year net profit result on the back of restructures and one-off costs associated with its refrigerated logistics business.
The diversified business reported a 38.4 per cent drop in net profit to $55.5 million for the 12 months to June, but grew revenue by 8 per cent to $6.08 billion.
Operating earnings before interest, tax, depreciation and amortisation (Ebitda) was down 4.2 per cent to $216 million.
The company also declared a final dividend of 9.5 cents a share, taking its full-year payout to 19 cents, fully franked.
In a statement, managing director John McConnell said the lower profit result followed one-off costs associated with restructuring the group’s refrigerated logistics division, along with other cost initiatives.
But he said the company was now in a stronger position to address short-term challenges.
“FY17 was a challenging year in automotive, given the acknowledged decline in the new vehicle market in Western Australia and the tightening of consumer credit conditions, which impacted on finance and insurance income,” Mr McConnell said.
“We have commenced the restructuring of the automotive division and implemented a number of cost reduction initiatives that will mitigate anticipated insurance commission changes in FY18.
“We delivered a strong performance in Refrigerated Logistics in the second half of the year, with Ebitda up 68 per cent on last year as the restructuring of the division began delivering expected improvements.”
Despite new vehicle sales having fallen 22 per cent in WA since peaking in 2012 – according to VFACTS – 23.7 per cent of AHG’s market share for new vehicle sales is in the state, which is a 30 per cent improvement since 2012.
AHG expects a modest uplift in operating performance in FY18, based on expectations that the WA economy is stabilising.
