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Highlights
- MMS achieved a 158.5% YoY growth in net profit to AUD 83.5 million in FY24.
- In FY24, revenues grew by 11.55% YoY to AUD 525.8 million, driven by growth across all segments (GRS, AMS, and PSS).
- Vanguard Group acquired a 5% stake in MMS as of 18 October 2024.
Fleet financing and asset leasing services company, McMillan Shakespeare Limited (ASX:MMS), witnessed nearly 158.5% YoY growth in its statutory net profit to AUD 83.5 million in the financial year FY24, with 11.5% YoY growth in revenues to AUD 525.8 million. Revenue growth was driven by organic growth across all segments, including Group Remuneration Services (GRS), Asset Management Services (AMS), and Plan and Support Services (PSS).
The period saw novated lease sales growth of 23% YoY, driven by continuous customer demand and higher-yielding EVs. Notably, EVs made up 41% of the new sales. Normalised underlying NPATA in FY24 increased by over 38% YoY to AUD 107.6 million with 22.1% YoY increase in normalised ROCE, underpinned by the execution of the long-term growth strategy of MMS.
Increasing Fund Buying in MMS
Through an ASX update dated 24 October 2024, the company notified that the Vanguard Group became a shareholder in the company by acquiring 5% stake in the firm, as on 18 October 2024.
Outlook
In FY25, the company expects to see continuation of the market conditions observed in FY24, including pricing competition, inflation and cost-of-living pressures. Furthermore, in FY25, continued increase in auto supply is anticipated and surge in manufacturers and EV models is anticipated with higher price points expected to be available.
MMS highlighted that FBT benefits on plug-in hybrids will expire on 1 April 2025 and the FBT discount on battery EVs will continue with the government expected to review it by mid-2027.
The company is committed to pursue organic growth opportunities across all segments with promotion and full roll out of Oly, with the aim to expand the novated lease market and partnership reach. Additionally, the focus is on enhancing customer experience, expanding competency led solutions and driving technology enabled productivity.
Share performance of MMS
MMS shares closed 0.34% lower at AUD 14.78 apiece on 30 October 2024. Over the past one year, MMS’ share price has declined by nearly 11.81% and in the last three months, it has dropped by almost 17.48%.
52-week high of MMS is AUD 22.10, recorded on 4 March 2024, and 52-week low is AUD 14.625, recorded on 23 September 2024.
MMS Daily Technical Chart, Source: REFINITIV
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 30 October 2024. The reference data in this report has been partly sourced from REFINITIV.
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