AHG accelerates away from the doldrums


Vehicle sales and logistics firm Automotive Holding Group (AHG) has recorded soaring returns for the first half of its financial year, with much of it stemming from the Rand-Harris and Covs integration. <br /><br /> The logistics arm saw revenue rise to a record $373 million, up 174.8 percent compared with the previous first half.

By Rob McKay | February 21, 2012

Vehicle sales and logistics firm Automotive Holding Group (AHG) has recorded soaring returns for the first half of its financial year, with much of it stemming from the Rand-Harris and Covs integration.

The logistics arm saw revenue rise to a record $373 million, up 174.8 percent compared with the previous first half.

Revenues for the transport and cold storage segment of that division rose to $168.7 million from $100.7 million in the earlier period.

Rand Transport’s recently established facilities in Melbourne and Brisbane drove much of that rise.

"Our integration teams made good progress bedding down both Covs and Harris Refrigerated Transport in the December half and are on track to deliver expected synergies in FY13, Group CEO Bronte Howson says.

"These key acquisitions for AHG were completed on 1 July 2011 and are already delivering results in excess of expectations."

The Group is seeking to optimise road and rail capacity to maximise fleet utilisation and deliver improved margins. And it is undertaking capital investment in facilities and rolling stock to meet growing demand.

The "other logistics" segment almost doubled its revenue from $112.2 million to $203 million.

"Amcap continues to perform solidly while VSE/Genuine Truck Bodies continues to improve," Howson says.

"All Holden and Ford genuine parts of Covs have been successfully relocated to Amcap premises and the rebranding of Covs’ 27 store branch network is nearing completion."

The $5.3 million purchase of Diesel Motors Trucks, which consolidates Daimler Group truck brands in Western Australia, was too recent to feature in the results.

A new site for that enterprise is planned for next financial year.

For the future, the Group sees demand for cold-storage at Rand increasing. New WA and South Australian facilities will add 15,500 pallets of increased capacity next financial year – 10,000 in WA and the rest in South Australia.

Covs will also relocate to a new 11,000 square metre distribution centre.

Further expansion for Rand in New South Wales and Queensland is being considered.

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