The Automotive Group Holdings Ltd (ASX: AHG) share price sunk 5% upon the release of its interim results this morning.
Here are five things all shareholders need to know about Automotive Holdings Group's report for the six-month period ended 31 December 2015:
- Revenue rose 7.2% to $2.75 billion
- Profit increased 7% to $48 million
- A fully franked interim dividend of 9.5 cents per share was declared, up from 9 cents per share last year, and is payable 6 April 2016
- A full business review and management restructure is being undertaken
- The Refrigerated Logistics and Logistics businesses reported a decrease in operating profit year over year.
"It is a pleasing result in a challenging market, across both Automotive and Logistics," Automotive Holdings Group managing director, Bronte Howson, said. "The Automotive division has delivered a very strong result, with growth in NSW, Queensland, Victoria and New Zealand, while our Western Australian operations have continued to outperform the broader declining market."
The automotive business, which accounts for around half of group profit, achieved an 18% jump in operating profit while the combined logistics businesses reported a fall of 28.8%.
"We are extremely pleased with the performance across Automotive and the result clearly demonstrates the benefits of the Group's scale and operating model," Mr Howson said.
Looking ahead, the company said the outlook for the logistics business is positive, and the group will continue to grow market share in the automotive industry.
"AHG is confident of maintaining and growing its share of the market, both in new and used vehicles, and in service and parts," Mr Howson said. "The comparatively low fuel price and interest rates should maintain confidence in the automotive sector in the second half of the financial year."
