Eclipx Group Ltd (ASX: ECX) shares are edging higher today after the fleet management company provided investors with a business update. At the time of writing, the Eclipx share price has inched 0.79% higher to $1.915.
How has Eclipx been performing?
Investors appear moderately pleased with the company's latest progress, sending the Eclipx share price into positive territory today.
In its announcement, Eclipx advised that for the first five months of FY21, it continues to perform to expectations. Recently at its annual general meeting (AGM), the group provided investors with a business update on Q1 FY21.
It said that net operating income (NOI) and net operating profit after tax (NPATA) before end of lease (EOL) were in line with estimates. To date, the company has sustained this performance through to the end of February.
In further news bolstering the Eclipx share price, the company noted that EOL income has significantly increased over the period with robust trading conditions recorded from the used car market. A limited supply of new vehicles to market in Australia and New Zealand primarily drove the surge. As a result, Eclipx revealed that EOL income stood at $26.4 million, or $5,766 per unit at the end of February. This reflects a jump of 70% when compared to the first half of 2020, which saw EOL income at $15.5 million, or $2,468 per unit.
The company stated that the higher EOL income is temporary and will fall back to normal levels. According to independent third parties, 'the global shortage for new cars could be restored from as early as June 2021'.
Eclipx is scheduled to report its half-year results sometime in the middle of May 2021.
About the Eclipx share price
The Eclipx share price has rallied by nearly 58% since this time last year. After hitting a low of 36.5 cents last March, Eclipx shares have steadily moved in an upward trend.
Based on the current share price, Eclipx commands a market capitalisation of roughly $618 million.
