Vehicle dealer and services firm adds to service offerings with Black buy as returns roll on
AP Eagers is on track for another record half-year profit to June in a period punctuated by acquisitions.
The car and truck dealership and automotive services firm expects net profit after tax to be about $33.5 million, compared to $31.4 million for the corresponding period of 2013, an increase of 7 per cent.
The bumper profit would be on the back of a before tax figure of $46 million, up 10 per cent on the same half last year.
The company has been acquisitive this calendar year, not least having picked up south-west and central Queensland’s Craig Black Group, which includes Western Fleet Services, and Ian Boettcher Motors.
At its annual meeting in May, chairman Tim Cromelin and CEO Martin Ward said these buys were likely to boost annual revenues by $400 million, or 15 per cent.
In May, Ward said the pair’s purchase price was about $50 million, with the Black purchase is expected to be finalised in the next two months.
This month, the Boettcher buy was put at $14 million.
AP Eagers’ new truck sales account for 5 per cent of its new vehicle sales and 4 per cent of its used sales and management says the used car and truck segment and optimisation of the parts distribution businesses will be a priority, while noting recent truck parts and service performance has been good.