McMillan Shakespeare Limited (ASX:MMS) shares down on market update

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Shares in salary packaging and fleet asset management company McMillan Shakespeare Limited (ASX: MMS) are down 0.8% to $16.42 off the back of a market update released late yesterday.

The update confirmed McMillan is on track to deliver an expected UNPATA of $93.6 million for FY18 but the company flagged an asset impairment of between $18 million and $24 million out of its RFS retail business and its exit from its Money Now point of sale motor vehicle consumer finance business.

The RFS asset impairment is due to “reduced margins, increased competition and regulatory uncertainty”, according to the update.

The Money Now exit will see McMillan write off goodwill, capitalised software and other assets of approximately $5.7 million after tax, with $800,000 recognised as a one-off cost for redundancy payments, lease commitments and other costs.

Competitor Smartgroup Corporation Ltd (ASX: SIQ) is travelling along well in the sector, with its shares up 0.6% to $11.77 at the time of writing.

Industrial cousin Brambles Limited (ASX: BXB) shares are in the red today – down 1.5% to $8.77 at the time of writing.

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