Dint in annual results no barrier to ‘exciting stage in our evolution’
Fleet management services firm SG Fleet has observed a slight dip in annual revenue and profit but remains optimistic in its innovation focus, which, from a heavy vehicle perspective, includes its chain of responsibility (COR) offering.
It recorded a net profit after tax (NPAT) of $60.5 million, down 10.4 per cent on the previous year, from revenue of $509.7 million, which was also down 1.1 per cent – born particularly from difficulties in the first half, the company says.
However, SG Fleet CEO Robbie Blau notes the company’s efforts to “proactively deal with the challenges encountered in the first half had produced a better performance in the second period of the financial year”.
See how these results compare to last year’s performance, here
Despite a temporary bounce in business and consumer sentiment in the aftermath of the election and the first interest rate cut, the Australian market environment remains largely unchanged, with retail conditions similar to those last seen during the GFC, it notes.
“While these factors are still very much at play, we have been better at growing our customer book, penetration of additional products and services has increased, and we have become more efficient in how we operate and bring these products to market.”
This in particular – and from a heavy commercial point – relates to the company’s new innovation hub, comprising its fleet compliance offering.
“During the year, we successfully launched our Inspect365 chain-of-responsibility product, with very positive feedback from existing and new customers,” Blau says.
“This product has gone from strength to strength and is effectively opening doors for us with a new range of customers.”
“We believe we are entering an exciting stage in our evolution: an increased rate of innovation and successful product launches, a strengthening of our position as an industry leader with a clear strategic vision, and a further improvement in the quality, resilience and visibility of our revenue streams,” he adds.
Chair Andrew Reitzer echoes this sentiment, also hinting at the company’s transition towards electric vehicles.
“In addition to strengthening our connections with existing customers, products such as our Inspect365 chain-of-responsibility solution and our eStart electric vehicle transition planning service are opening up doors with significant new prospects,” Reitzer says.
SG Fleet Group’s total fleet size as at June 30, 2019 was 139,945, down from 147,703, felt particularly by the loss of 7,153 vehicles managed on behalf of the Western Australian government.