Automotive Holdings Group Limited (AHE) reported a record underlying net profit of $48.4 million up 64% for the 12 months to 30 June 2008. The company said the result was boosted by strong performances by its automotive retailing and logistics divisions.
Including a $4.74 million gain relating to a GST tax refund, NPAT was $53.2 million.
The refund related to GST holdback claims made from 2000 to 2005. Further claims have been made in the 2008/09 financial year of approximately $2.5 million net of costs and tax.
Underlying group revenue for the year was up 53% to $3.4 billion up 54%.
Underlying group EBITDA margin was 3.4% compared to 3.15% previously, achieved through periods of high growth and market volatility.
Managing director Bronte Howson said the 2008 performance was strong against the backdrop of higher interest rates, rising fuel prices and a decline in consumer confidence.
"Our automotive retailing division performed very strongly through the year however we did see slowing towards the end of the financial year.
"Revenue for automotive retailing rose by 52.7% to $3 billion and EBITDA for the division rose by 64.7% to $96.1 million," he said.
"Importantly, our EBITDA margin in automotive retailing remains strong, up 7.9% to 3.17% from 2.94% last year."
In June 2008 AHG acquired two businesses - Allpike Citroen and Peugeot in Osborne Park, Western Australia and Liverpool Nissan in New South Wales.
"Both these businesses and the greenfield sites will provide growth opportunities in 2009," the company said.
The group has 105 passenger and commercial dealership franchise sites in Australia and New Zealand.
AHE's 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," Mr Howson said.
He said macro economic factors would present challenges in the new year and the company would look to further consolidate its current operations.
"Our strict acquisition parameters have served us very well since listing on the ASX three years ago and we see no reason to change now despite the range of opportunities available in the market," he said.
Mr Howson said AHG would also continue its strategy of greenfield site development in automotive retailing as opportunities arise.
The company declared a final dividend of 10c, bringing the full year fully franked payout to 17.25c, a rise of 38% on the previous year.
On Friday Automotive Holdings Group closed flat at $1.90.