Shares in Eclipx Group Ltd (ASX: ECX) were up 0.6% to $3.38 on Tuesday, following the release of the company's results for the half-year to March 31.
Here are the highlights of the report:
- Net operating income of $159 million, up 39% on the previous corresponding period
- Net profit after tax and amortisation (NPATA) up 23% to $39 million
- Cash EPS up 4% to 12.3 cents
- Fully franked interim dividend up 7% to 8 cents per share.
The main contributor to the company's profit is its core business of vehicle leasing and fleet management, where Eclipx's market share continues to expand. Eclipx manages about 112,000 vehicles, with assets under management of $2.3 billion.
Non-core operations are also growing. GraysOnline, the retail and auction service acquired by Eclipx in August 2017 for $180 million, saw a 13% increase in sales volume. Right2Drive, the group's medium term rental and accident replacement vehicle business, grew 39% in terms of hire volume.
The company reaffirmed its positive full-year guidance, with FY2018 NPATA up 27% to 30% on the previous year, which leaves the stock trading at approximately 12x earnings.
