AUSTRALIA’S third-biggest listed automotive retailer, Autosports Group Ltd, has shown its focus on the prestige end of the new-car market has paid off with a 21.3 per cent increase in revenue to $1.75 billion.

The results for the 2018 financial year also showed it had a net profit after tax of 8.1 per cent, at $32.1 million – a 23.8 per cent rise over last year.

In its statement to the Australian Securities Exchange, ASG said the revenue growth during the financial year was sourced from the accretive acquisitions of Melbourne BMW and Canterbury BMW, the full year contribution from its 2017 purchase of Doncaster BMW, the opening of Volvo Cars Rushcutters Bay, back-end restructuring, and growth in service, parts and finance and insurance business.

ASG said VFACTS sales data showed the ‘prestige’ vehicle segment (which includes mainstream brands and entry-level premium brands) grew by 3.4 per cent – or 4269 units – in its markets of NSW, Victoria and Queensland which was in line with the national growth. The main contributor in this segment was Honda, up 34.5 per cent in sales.

 

In the luxury (premium) market, the three states had a 0.8 per cent fall in sales compared with a national luxury-car sector fall of 2.2 per cent. The best growth brands were Volvo (up 23.5 per cent) and Mini (up 11.3 per cent).

But other brands slipped, including BMW (down 0.2 per cent), Audi (down 0.6 per cent), and Mercedes-Benz passenger cars that were down 5.8 per cent. Mercedes lifted overall, however, on sales of its X-Class ute.

The outlook is for similar growth. ASG said it will capitalise on its restructure of Melbourne BMW while continuing to improve service, parts and collision repair revenue.

It will open its new Bentley and Maserati dealership in Southport on the Gold Coast in October this year, and one month later, develop the Mini dealership in Canterbury in Sydney’s inner-western suburb.

In April next year, ASG plans to establish an additional OEM-approved collision repair business in Sydney.

ASG said the outlook for the current financial year was growth derived from the full-year contribution of Melbourne BMW and Canterbury BMW and the maturing of its service, parts and repair businesses.

“ASG expects challenging new-vehicle conditions to continue through the 2019 financial year,” it said.

“ASG’s sensitivity to new-car fluctuations remains but is expected to continue to reduce as our back-end revenue streams continue to mature.”

The company announced a final dividend of 4.8 cents a share, bringing the full year’s dividend to 9c/share.

By Neil Dowling