A $19.9 million write-down at Automotive Holdings Group’s Queensland operations has soured an otherwise strong result, with the automotive retailer booking a net profit of $31.2 million for the year to June 30.
Revenue was up 3 per cent for the group, to $3.3 billion.
But net profit dropped 48.3 per cent compared to the previous year, because of the $19.9 million impairment charge and acquisition costs of $1.3 million.
Of the total impairment, $13.2 million related to its Queensland parts distribution network and $6.7 million to four of the group’s 17 Queensland dealerships.
Revenue for AHG’s automotive retailing division was up 2.3 per cent to $2.92 billion, while its logistics division recorded record revenues, increasing 7.8 per cent on FY2010 to $412 million.
Managing director Bronte Howson said the company’s retail operations in Western Australia, NSW and New Zealand had delivered record profits.
Mr Howson said the result was pleasing in the face of challenging conditions, in particular supply disruptions relating to the Japanese tsunami and the Queensland floods.
“Our record operating EBITDA affirms the robustness of our diversified business model, and provides a solid cash flow basis to maintain shareholder dividends on an expanded equity base,” Mr Howson said in a statement.
“Moving into FY12 we have a positive outlook for the group.
“The successful capital raising in May has significantly strengthened our balance sheet and allows us to pursue further growth opportunities .
“AHG is in good shape and our key businesses are performing well.”
At close of trade today, AHG’s stock had lost 1.4 per cent, to trade at $2.05.
