Luxury sales, strategic acquisitions likely to drive Autosports Group’s (ASX:ASG) 1HFY25 growth

Highlights

• Normalised profit expected to reach AUD 28 million in 1HFY25.
• The company focuses on expanding sales of luxury brands such as Volvo, BMW, and Ducati.
• Recently completed acquisition of Stillwell Motor Group is forecasted to contribute AUD 345 million in revenue annnually.

Autosports Group Limited (ASX:ASG) is an ASX-listed company that is engaged in the sale of new and used motor vehicles. Additionally, the company deals in comprehensive finance and insurance solutions.

In the financial year 2024 (FY24), the company recorded 11.6% YoY increase in its revenue to AUD 2,646.9 million, including 9.2% YoY increase in new vehicle revenue. The rise in new vehicle revenue was underpinned by improved consumer offerings, full-year impact of the FY23 acquisition and better supply. Meanwhile, in FY24 EBIT increased by 8.3% YoY to AUD 145.1 million.

NPAT during the reported period decreased by 7.8% YoY to AUD 61.5 million due to a 68.7% YoY increase in interest expense.

Recent update

In the first half of FY25 (1HFY25), the company focused on decreasing inventory levels, and it reached below October 2023 levels, despite a drop in the new vehicle market. Meanwhile, used cars, services and parts continued to demonstrate growth.

In 2HFY25, the company expects to see improvement in the new vehicle gross profits.

Outlook

In 1HFY25, normalised NPBT of around AUD 28 million is anticipated, with continuous growth in sales of luxury brands and operational improvements.

The recent acquisition of Stillwell Motor Group strengthens the company’s representation of multiple brands including Volvo, BMW and Ducati brands, expanding ASG’s presence in Victoria and also contributing further AUD 345 million in annualised revenue.

Top 10 shareholders of ASG

The top 10 shareholders of ASG have around 68.89% shareholding in the company, while the top four have nearly 39.38% of the shareholding. JIP Parramatta Pty. Ltd. and Sastempo Pty. Ltd. have the highest stake in the firm with a shareholding of ~11.69% and ~10.92%, respectively.

Share performance of ASG

ASG shares closed 0.80% lower at AUD 1.87 per share on 2 December 2024 with a market capitalisation of AUD 381.59 million. Over the last one year, ASG’s share price has dropped almost 20.76%, while in the past three months, the share price has declined by almost 15%.

52-week high of ASG is AUD 2.77, recorded on 2 April 2024 and 52-week low is AUD 1.84, recorded on 27 November 2024.

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 02 December 2024. The reference data in this report has been partly sourced from REFINITIV.

Disclaimer

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