View Comments
AHG jumps on record interim profit
The West Australian

Shares in Automotive Holdings Group shot to a five-and-a-half year high after the car dealership company posted a record $37.9 million first-half profit up 25.6 per cent on the previous corresponding period.

The result was achieved on record revenue of $2.17 billion, up 13.5 per cent.

The company lifted its interim dividend by one cent to seven cents a share, fully franked.

AHG Managing Director Bronte Howson said the result reflected solid growth in the company's automotive and logistics divisions.

The automotive division was boosted by strong consumer demand and the strong Australian dollar.

Mr Howson said the logistics division was well placed for sustained growth following the acquisitions and integration of Harris Refrigerated Transport and the Toll Refrigerated business into Rand, and the acquisition and integration of the Covs business.

AHG predicted a solid second half based on its order book and industry sales forecasts in the automotive division as well as continuing strong demand for increased cold storage capacity in the logistics business.

"We will also continue to explore other opportunities that meet our growth and financial criteria," Mr Howson said.

AHG said it had $147.2 million in cash and undrawn commercial bill facilities at the end of December.

AHG shares were up 18 cents, or 4.57 per cent, to $4.12 at 7.55am after touching an earlier high of $4.19.