The Automotive Holdings Group Ltd (ASX: AHG) share price tumbled today after the group reported lower-than-expected financial results for the half-year period ending December 31 2016. Below is a summary of the results, with comparisons to the prior corresponding period (pcp).
- Statutory net profit of $38.7m, down 19.8%
- Earnings per share of 12cps, 15.7cps in pcp
- Operating EBITDA of $108.1m, $112.4m in pcp
- Operating net profit of $43.9m, down 11.3%
- Interim dividend of 9.5cps fully franked, flat on pcp
- Company expects to deliver full year operating NPAT outcome ahead of FY16
Automotive Holdings Group is Australia's largest car trading and transport logistics group that has delivered impressive returns to shareholders over the past five years with the stock up 66%.
The group owns car dealerships that buy and sell new, or used cars, trucks and vans across Australia, with all regions said to be performing well except for WA where economic confidence continues to suffer from the mining downturn.
The group delivers growth both organically and via acquisitions of small dealerships it can integrate into its own model with earnings per share lower over the period in part due to the issue of new equity to fund recent acquisitions.
Rival operators in automobile services space listed on the ASX include AP Eagers Ltd (ASX: APE), Bapcor Ltd (ASX: BAP) and panel beater roll-up AMA Group Ltd (ASX: AMA), while ARB Corporation Limited (ASX: ARB) also delivered weaker-than-expected results yesterday.
Selling for $3.88 this afternoon, Automotive Holdings Group sells for around 16x annualised earnings with a bumper trailing yield of 5.8% fully franked. This makes it one for the watch list.
