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Martin Ward

AUSTRALIA’S second major automotive retailer AP Eagers Ltd predicts a record profit for the six months to June 30 this year on the back of healthy vehicle sales in its eastern seaboard territory.

In a statement to the Australian Securities Exchange, AP Eager said it expects a record net profit before tax of $69.5 million for the six month period, up from $68.1 million in the previous corresponding period, an increase of 2.1 per cent.

The final results, which will be the subject of the completion of an external audit, are expected to be announced on August 22.

The prediction comes after AP Eagers in February announced a battered 2017 full-year financial result that was hit by an extraordinary $5.2 million write-off.

At that time, AP Eagers’ managing director and CEO Martin Ward said the extraordinary items included restructuring “underperforming and unsustainable businesses” but said future results would bear the fruit of the changes.

The company reported a profit before tax of $135.6 million for the 2017 year, down four per cent on 2016, on revenue of $4.06 billion, up six per cent on 2016.

In 2017, car sales represented $84.4 million while in 2016, it contributed $104.6 million. Mr Ward said the results were affected by the restructuring of seven operations that were not performing to expectations.

By Neil Dowling