Automotive Holdings grows profits

Strong new car sales has helped retailer and logistics company Automotive Holdings Group grow its profits and expand its business.

Motor retailer and logistics company Automotive Holdings Group's profit is up more than 30 per cent, thanks to strong sales and results from its core businesses.

The group, which owns automotive dealerships across Australia and New Zealand, on Friday posted a net profit of $66.8 million for fiscal 2012/2013, up 31.9 per cent on the previous year.

Healthy performances from existing dealerships allowed the group to focus on growing the newer arms of the business, AHG managing director Bronte Howson said.

"The automotive industry remains strong, with record levels of new vehicle sales, buoyed by manufacturer incentives (like) low interest rates," he said in a statement.

The group expanded its automotive branch in July, buying an established Holden dealership in Auckland and winning approval to build a new Nissan dealership next door.

Mr Howson said this recent push across the Tasman, combined with other Australian acquisitions, would deliver more growth opportunities in 2014.

In the logistics division, refrigerated transport service Rand also performed well, despite the setback of Queensland's major floods in January.

The main focus for the logistics branch had been on adding Toll Refrigerated and motor parts supplier Covs to the business, Mr Howson said.

The company declared a final dividend of 12 cents, making an annual distribution of 20 cents, fully franked.

At 1055 AEST, AHG shares were trading at $3.89, down four cents or 1.02 per cent.


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Source: AAP


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