The company also showed a $1.635 billion revenue for the full 2021 financial year, up seven per cent on previous estimates.

Peter Warren Automotive (PWR), which combines the Peter Warren group and the Frizelle group, listed in April this year. 

In its statement to the ASX, PWR’s CEO Mark Weaver said sales growth “has been driven by strong execution amid buoyant market conditions, with particular strong demand in May and June with profit margins supported by cost reductions and operating efficiencies”.

“The result demonstrates our deep roots as a family-owned and operated business.”

He said that all PWR’s revenue departments – new vehicles, used vehicles, aftermarket, parts and accessories, finance and insurance, and service – delivered increases during the year.

“The strong revenue growth combined with delivery of planned cost reductions, improved supplier terms and operating efficiencies have delivered significant operating leverage with a pro forma EBITDA margin of 6.7 per cent,” Mr Weaver said. This compares with 3.6 per cent in FY20.

PWR’s statement showed gross margins were 18 per cent, which were 200 basis points above FY20 and 110 points over the prospectus, helped by revenue contributions from service, aftermarket and F&I.

Mr Weaver said cost savings were achieved in employee benefits expense, advertising and inventory holding costs. Improvements in employee expenses were achieved through reduced trading hours that he said did not impact on revenue.

Opportunities realised during the year include the purchase of four businesses. These are Tweed Mazda in Tweed Heads, Queensland, that was bought on June 1; Collins Honda in Rockdale, Sydney, on June 16; Northern Rivers Honda in NSW’s Lismore from July 1; and Patriot Campers on the Gold Coast which was Australia’s first agent appointment.

PWR said that outside the financial year postings, trading in July and August this financial year was marred by lockdowns.

“However, the impact has been mitigated somewhat by a strong new-vehicle order book at June 30 which has supported the delivery of new vehicles in the first quarter of FY22,” it said.

“We have taken proactive steps to adapt to these challenges including adapting the sales model to ‘click and collect’ and further enhancing our digital capabilities.”

But, the company said, supply of new vehicles from OEMs remains “uncertain”.

For FY22, it said there was a “high degree of uncertainty” in the auto retail environment because of the lockdowns and other restrictions in NSW and Queensland; the impact of state government decisions on border closures; and the impact on global manufacturing and supply chains.

Based on these assumptions, it said it would not amend its FY22 pro forma pre-tax net profit of $28 million that was listed in its prospectus.

By Neil Dowling