The record result was achieved mainly on rising car sales across its Australian and New Zealand business.
Combining AHG’s divisions, the listed company recorded revenue of $2.75 billion for the six months, a rise of 7.2 per cent on the previous corresponding period.
AHG managing director Bronte Howson said he was happy with the overall result, despite some challenges.
“It is a pleasing result in a challenging market across both automotive and logistics,” he said.
“The automotive division has delivered a very strong result, with growth in New South Wales, Victoria, Queensland and New Zealand while our Western Australian operations have continued to outperform the broader declining market.
“The growth of our east coast and New Zealand operations couples with the resilience of the Western Australian operations show the benefits of AHG’s scale.”
Mr Howson said the result was also attributed to performances from recently acquired assets.
“We’ve also seen a strong first half-year performance from the Bradstreet acquisition in Newcastle; secured a new Nissan franchise in Brisbane; and completed the acquisition of West Auckland Nissan and Perth’s three Mercedes-Benz dealerships,” he said.
AHG also opened a new Nissan dealership in the Perth northern suburb of Clarkson and started trading at a temporary dealership for Nissan in Aspley in Brisbane.
Mr Howson said the outlook for the automotive division remained positive based on forecast record vehicles sales for 2016 – which he said were estimated to be 1.16 million for the year – and low interest rates, falling fuel prices and vehicle affordability.
But he said the strong growth in NSW, Queensland and Victoria was partially offset by weakened performance in WA, attributed to the decline in the resources sector.
Some light was seen in AHG’s foray into the north-west of WA with its service centre at Newman. Mr Howson said this had performed better than the region’s general market.
More pleasing was the “significant” growth in New Zealand as AHG traded in the new West Auckland industrial hub. Mr Howson said AHG would continue its expansion into New Zealand and Australia’ s east coast.
WA sales resilience and the operation of the Easyauto123 used-car warehouse concept – which opened its outlet in Perth in January – are predicted to show upside this year.
However, the results were not all positive for AHG.
Mr Howson announced that the performance of AHG’s refrigerated logistics was down on forecast “but the division is well placed to capture new revenue and increase earnings”.
He said that cold storage utilisation increased during the December half but transport volumes – particularly on the east-west routes – have negatively impacted on profit.
The division recorded a $308.2 million result, down from the previous corresponding period’s $319.1 million.
AHG is Australia’s largest refrigerated logistics company and cold storage provider.
Weaker mining activity also impacted on the results of two parts arms – Covs (now cleared to be sold to Repco) and AMCAP.
AMCAP is expected to return to budget in the second half of this year.
Its “other logistics” division that includes Covs, AMCAP, KTM, Husqvarna, Higer Bus, Vehicle Storage and Engineering (VSE) and Genuine Truck Bodies (GTB), slipped revenue to $180.9 million from $195.6 million previously.
Mr Howson said the motorcycle distribution reported an increase in sales but the results were hit by a weaker Australian currency.
“I am very confident going forward into the second half of the year,” Mr Howson said.
By Neil Dowling
Up and up: AHG managing director Bronte Howson said he was pleased with the 2015 financial results.
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