SG Fleet looks to telematics lift
Interim results show rise in net profits for leasing firm
Vehicle leasing and fleet management firm SG Fleet has seen interim net profits rise 35.2 per cent to $26.6 million in a year dominated by the UK acquisitions of Fleet Hire and Motiva
The company is heavily focused on car fleets but does have a commercial vehicles and materials handling equipment division and is bullish about the impact of telematics services to its business.
With market expectations reportedly higher, the company forecasts recent "unsustainable" competition to relent.
"While we have walked away from some new opportunities for this reason, we have been successful in extracting additional revenue from existing accounts," CEO Robbie Blau says.
"We converted some fleet managed customers to full leasing and our new mobility solutions, including GoGet, are receiving increased interest. Integrated telematics applications in particular have seen solid take-up.
"We have a number of signed contracts as well as several further trials, including with some large government agencies."
On telematics, the company says take-up is accelerating as capabilities are added and its challenge is to "maximise value-add from data and create integrated solutions".
Data analysis and extraction of recommendations has become specialist outsourced expertise and the key is "understanding of objectives and determining requirements".
"Across the Group, demand for new, higher value-add solutions, in particular telematics, is gaining momentum and we believe we are at the forefront in terms of being able to deliver these integrated solutions," Blau says.
"This will continue to support our new business development and customer penetration objectives."