Automotive Holdings Group Limited (ASX: AHG)

When we talk about the automotive retail and logistics operations in the Australian Market, one of the first names that strike our mind is the Automotive Holdings Group Limited (ASX: AHG). A prominent and trusted brand in the segment AHG has been ruling the Australian Market for decades now. The Automotive Holdings Group brand name is well recognized and trusted across the Australian subcontinent with presence in the western side of Australia, Queensland, Victoria and New South Wales.

AHG functions via two channels primarily, the first one being dealerships when the brand works on a franchise model and second via spreading its reach in the Market with multiple subsidiaries and businesses. The business though concentrating primarily on automotive and logistics spread across multiple verticals such as motor parts and industrial supplies distribution, cold storage and temperature-controlled transportation, motorcycle importation amongst many others. Let us have a look at the progress the company has made over these years since its official listing on the Australian Securities Exchange in the year 2005.

Company Chronicle since listing on ASX

Automotive Holdings Group Limited was initially started in 1952, however the official listing on the Australian Securities Exchange was completed on the 31^st of October in 2005 and trading commenced 5 days post that on the 5^th of November 2005. In 2006 it began its journey of exponential growth and acquisition by acquiring the New South Wales based McGrath Lander Group positioning itself as the largest automobile retailer in Australia. In the same year the company also acquired four dealerships in New Zealand, two each for Mazda and Ford. In 2007 the group successfully completed the acquisition of Queensland based automobile group Zupps, adding a kitty of thirty-two franchises across eighteen different locations. Simultaneously in 2007, the group also developed four new automotive dealerships across Western Australia and Queensland. Other companies acquired in 2007 included Lansvale Holden, Prestige Hino Greenfield.

In 2008, AHG opened a new dealership for Hyundai in Rockingham followed by acquisition of Allpike Citroen and Peugeot. In 2009, the group saw development of sub-brand Rand Transport followed by acquisition castle hill site in 2010 along with Melbourne Toyota acquisition. In 2011, the brand further expanded its operations with adding Diesel Motor Trucks to its pool and expanding its logistics vertical with acquisition of Coventry?s automotive parts business based out of Melbourne and Adelaide based Harris Refrigerated Transport. In 2012, Rand Transport acquired Toll Holdings Limited followed by acquisition of Coffey Ford and Jeff Wignall Group. 2013 was another significant year for AHG, there was a 3-year sponsor agreement with Melbourne Football Club, followed by acquisition of Bayside and Peninsula Groups. Another feather in the cap was the ASX 300 listing for AHG. The group was expanding with its full momentum and further acquired Castle Hill Hyundai and Jason Mazda and in the very same year getting elevated to the ASX 200 Index. 2013 was the year for Automotive Holdings Group, they further added Melbourne Toyota dealerships to their acquired list and simultaneously expanded their operations to New Zealand.

In 2016, AHG launched its subsidiary business Easyauto123 and acquisitions included Victorian Mitsubishi dealership, Penrith Hyundai dealership, Landmark Mazda Franchise, Daimler Trucks Laverton, Audi Centre & Skoda Newcastle. 2016 also saw the opening of AHG?s east coast headquarters in Sydney. In 2017, Easyauto123 opened its second warehouse in Sydney, third in Perth and fourth in Melbourne. A major win this year was the acquisition of Carlins Auction Group. The acquisitions continued at the same time with addition of Hunter Motor Group. In 2018, AHG expanded its New Zealand operations with acquisition of two automotive dealerships in Manukau. The fifth Easyauto123 warehouse was established in Brisbane followed by AHG opening their first retail experience store ?Mazda Connect? in North Auckland.

Dealerships

One of the key segments of Automotive Holdings Group Limited are their dealership and franchise business. Apart from the core subsidiaries that AHG has, franchise is a major segment bringing in the revenues.

The Automotive Holdings Group is a proud owner of one hundred and eighty-one franchises which are spread across a span of more than a hundred locations across Australasia. The have approximately 34 dealerships across Western Australia, 25 in Victoria, 14 dealerships and 33 dealerships in Queensland and New South Wales respectively and 9 dealerships in New Zealand.

Businesses

Let?s have a look at the core businesses and subsidiaries of the group

AMCAP: AMCAP was established in 1968 and is one of the most prominent names in the automotive parts industry. They are known for providing personalized and tailored parts and embellishments for the commercial and industrial automotive sector.

360 Finance Pty Ltd: A renowned insurance service provider for automobile industry delivering some of the best rates on vehicles of all segments. Their services also include business and personal insurance and loads. They are known to offer hassle free and quick services both online and offline.

AHG Refrigerated Logistics (Rand Transport, Harris Refrigerated, Scott's Refrigerated Freightways, JAT Refrigerated Road Services): A leading and nation-wide service provider of cold storage and refrigerated transportation services. The customer data base for the refrigerated transportation services is diverse and include industry sectors such as supermarkets, industrial manufacturers and distributors of food services. AHG proud to be using the best in class technology to stay at power with industry standards.

VSE Solutions & Genuine Truck Bodies: VSE Solutions & Genuine Truck Bodies operates from their one-stop location in the south of Dandenong. They specialize in using a Genuine Flow Line Manufacturing System for quick production and distribution and offer a complete range of refrigerated and truck body solutions to the domestic market. They provide end to end solutions from design and construction to repair.

Easyauto123: Easyauto123 is a used car provider and buyer service guaranteeing the best in class quality of vehicles across 123 outlets located across the Australian continent. They promise the widest range of cars under a single roof guaranteeing the most transparent and vocal pricing.

Carlins: Carlins has a strong and well-established reputation in the motor industry for the past six decades. They work on the values of reliability, offering automotive remarketing services across the continent. Carlins is a joint venture between Carlins Management and Eagers Car Holdings Ltd. and is currently based in 5 locations across Melbourne, Sydney, Newcastle, Brisbane and Perth.