Eclipx Group Limited (ASX: ECX) has established itself as a leader in fleet leasing, fleet management and diversified financial services business. The company is having a robust business model that incorporates long-term relationships with a broad and diverse customer base comprising large and small corporate and government businesses.
Today (i.e., 18 March 2019), the company’s shares were placed in trading halt at the request of ECX, pending a market announcement to the ASX which will include a trading update. The company has requested the trading halt until the earlier of the commencement of normal trading on Wednesday, 20 March 2019, or when the announcement is made by Eclipx.
In November 2018, the company had entered into a Scheme Implementation Agreement with McMillan Shakespeare Limited (MMS), for a merger that is proposed to be implemented by MMS acquiring all shares in Eclipx. After ECX requested for a trading halt, MMS informed that it will consider its position in respect of the proposal to acquire ECX after reviewing that trading update.
In FY 2018, the company’s net operating income increased by 27% to $325.3 million as compared to the previous corresponding period (pcp). Further, the company reported 14% growth in its NPAT which reached to $78.1 million in FY2018. The company’s New Business writings surpassed $1 billion the first time in 2018, growing 11% to $1.1 billion, while its Assets Under Management or Finance rose 9% to $2.43 billion.
The company has established itself as a leader in fleet leasing and have evolved in the past few years to include consumer services, commercial equipment finance, short-term vehicle rental, and online auction services.
In the recent past, the company has advised the market that it is expecting to achieve single-digit growth in its NPATA for FY 2019, on an accounting like-for-like basis. Further, the company is expecting a higher than normal seasonal skew in its earnings, with the second half of the year to reflect benefits from expected growth in areas such as Grays Auto and R2D as well as cost initiatives implemented progressively during the first half of this year and continuing into the second half. Currently, the 1H FY19 NPATA is expected to be around 40% of the full FY19 NPATA due to softness in parts of Consumer and continued subdued conditions in the Insolvency & Industrial auction market that the company has experienced in the first quarter of FY19.
Now, let’s have a glance at the company’s stock performance and the return it has posted over the past few months. The stock last traded at a price of $1.885 with a market capitalization of ~$602.52 million as on 18 March 2019. The stock has provided a year till date return of -20.46% & also posted returns of -24.90%, -25.49% & -18.75% over the past six months, three & one-months period respectively. It had a 52-week high price of $3.775 with an average volume of ~ 1,307,565.