Used truck and service divisions come to the fore
Trucks have once again become a lauded business for vehicle sales outfit AP Eagers, its annual financial results show.
The National Truck Division, which represents 9.5 per cent of group revenues, delivered a “significantly improved profit performance” of $6.26 million compared with a $3.2 million loss in 2015, though one that included a goodwill impairment write-down of $5.5 million.
Revenue increased by 5.4 per cent to $363.8 million, “reflecting strong performance in all departments including significantly improved profits from the used truck and service divisions”.
“Record trading performances in South Australia and New South Wales’ Hunter Region, significant improvement in National Truck operations and solid contributions from businesses acquired during the year helped offset the decline in Queensland,” the company says.
The performance helped group net profit reach $104 million, up 20.6 per cent on the previous year’s $86.2 million and the fifth year in a row of rising net profit, as total revenue increased by 18.1 per cent to $3.8 billion in 2016
Its strategic 19.99 per cent shareholding in Automotive Holdings Group (AHG) was valued at $262 million based on its December 31 closing share price of $3.95 per share, down from the 2015’s $4.52.
“Whilst not included in the Company’s Statutory Profit after Tax, a before tax unrealised loss of $37.8 million resulting from the reduction in AHG’s end of year share price, has been recognised in the Statement of Comprehensive Income for the 2016 year,” Eagers says.