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Highlights
- Peter Warren Automotive is an ASX-listed automotive retail dealership firm
- In 1HFY24, the company recorded nearly 20% YoY rise in its revenue to AUD 1,203.1 million
- In FY24, the company expects underlying profit before tax of AUD 52-57 million
Peter Warren Automotive Holdings Limited (ASX:PWR) sells used and new cars, and provides inventory and trade-related services for spare parts. Additionally, the company offers several automotive goods and services including auto maintenance, brand-new and used cars, vehicle protection products, extended service contracts and other aftermarket products.
In the financial year 2023 (FY23), PWR’s revenue jumped 21.5% to AUD 2,068.82 million and EBITDA surged by 16.3% YoY to AUD 137.06 million. Meanwhile, net income decreased by 0.3% YoY to AUD 56.36 million.
In March 2024, the company informed about the acquisition of a multi-franchise dealership group in New South Wales. In the transaction, PWR acquired Macarthur MG, Macarthur Mazda, Macarthur LDV and Macarthur Nissan. The acquisition was first announced in January 2024 with valuation of AUD 27 million and included net assets and goodwill at the time of completion.
Key highlights of 1HFY24 results
In the first half of FY24 (1HFY24), revenue of the company grew by almost 20.4% YoY to AUD 1,203.1 million, underpinned by organic expansion in parts, accessories, services, used cars, new cars and aftermarket products along with increase related to the recently acquired dealerships. The period saw 1% YoY growth in underlying EBITDA, while NPAT fell from AUD 30.1mn in 1HFY23 to AUD 22.2mn.
Outlook
In FY24, the company anticipates recording underlying profit before tax of AUD 52-57 million.
The board’s focus is on company’s growth strategy which comprises selective pursuit of disciplined acquisitions. The margins on new cars are expected to be continuing to face pressure, which might lead to further minor reductions. Still, the company expects to get benefits of sustained growth in services, parts and used cars, supported by ongoing cost and inventory management.
Share performance of PWR
PWR shares closed 4.04% higher at AUD 1.93 apiece on 17 July 2024. In the last one year, PWR’s share price has declined by 23.41% and in the last one month, it has surged by almost 9.97%.
The 52-week high of PWR is AUD 2.77, recorded on 23 August 2023 and the 52-week low is AUD 1.625, recorded on 26 June 2024.
PWR Daily Technical Chart, Source: EODHD/Others
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 17 July 2024. The reference data in this report has been partly sourced from EODHD/Others.
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