Fleetpartners’ (ASX: FPR) FY24 Sees 21% Growth in New Business Writings and 11% Rise in AUM

Highlights

• In FY24, New Business Writings (NBW) reached AUD 924 million, reflecting a 21% YoY growth and NPATA reached AUD 87.7 million.
• In 1QFY25, NBW declined by 7% YoY to AUD 211 million, due to reduced demand in New Zealand after the repeal of the Clean Car Discount.
• FPR expects operating expenses to rise by 2%-3% in FY25.

Fleetpartners Group Limited (ASX:FPR) is an ASX-listed company with specialisation in vehicle leasing, fleet management, heavy commercial vehicles, salary packaging, and novated leasing across Australia and New Zealand.

In the fiscal year ending 30 September 2024 (FY24), the company delivered -

• New Business Writings (NBW) - AUD 924 million, marking a 21% increase compared to FY23. This surge was underpinned by demand across various segments, particularly in novated leasing, which saw a 36% rise in NBW.
• Assets Under Management or Financed (AUMOF) - AUD 2.3 billion, up 11% YoY.
• Net Operating Income (NOI) before End-of-Lease (EOL) income and provisions - AUD 2.3 billion, a 11% increase from FY23.
• Net Profit After Tax Excluding Amortisation (NPATA) - AUD 87.7 million, a slight decrease of 1% from FY23
• Profit attributable to shareholders - AUD 77.88 million, a 3.88% decrease from FY23

Q1FY25 Business Update

NBW dropped by 7% YoY to AUD 211 million in Q1FY25, primarily impacted by reduced demand in New Zealand following the repeal of the Clean Car Discount Meanwhile, AUMOF increased 9% YoY to AUD 2.3 billion, supported by ongoing new business writings, ensuring sustained recurring revenue.

EOL income per vehicle continued to decline but remained above the long-term target of approximately AUD 2,350 per vehicle and NOI before EOL and provisions grew 6% YoY.

Outlook

FPR expects its FY25 performance to remain consistent with FY24, with a slight adjustment reflecting an AUD 800,000 reduction in anticipated share-based payment expenses. NOI before EOL income and provisions is projected to follow the average trend of AUMOF. However, management fee normalisation and higher lease funding may partially moderate overall growth.

Average EOL income per vehicle saw a 10% YoY decline in Q1FY25, with further softening expected as used car prices stabilise. Operating costs are forecasted to rise by 2%-3%, though savings of AUD 3 million from the Accelerate program will help offset expenses.

Share performance of FPR

FPR shares closed 1.06% lower at AUD 2.80 per share on 11 February 2025. Over the past year, FPR’s share price has dropped by nearly 14.11%, and in the last three months, it has lost 6.67%.

52-week high of FPR is AUD 3.84, recorded on 28 March 2024 and 52-week low is AUD 2.55, recorded on 7 January 2025.

Note 1: Past performance is neither an Indicator nor a guarantee of future performance.

Note 2: The reference date for all price data, and currency, is 11 February 2025. The reference data in this report has been partly sourced from EODHD/Others.

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