FleetPartners Group 1H24 Results Overview

FleetPartners Group Limited (ASX: $FPR) has released its 1H24 results, reporting a 39% increase in new business writings (NBW) compared to the prior comparative period, 1H23. The Group's assets under Management or Financed (AUMOF) reached $2.1 billion, reflecting a 10% increase from the prior comparative period. Net operating income (NOI) pre EOL and provisions saw a 1.4% growth compared to the prior period, reaching $76.1 million. However, the net profit after tax excluding amortisation (NPATA) experienced a 4% decrease, amounting to $41.8 million. The Group also announced a 2H24 share buy-back of up to $27 million.

Executive Commentary on 1H24 Performance

The Group delivered a strong performance in 1H24, with a significant increase in new business writings, driven by the successful execution of Strategic Pathways and improvements in the supply of new vehicles. The Group's focus on directing more NBW to warehouse funding resulted in a 22% increase in balance sheet funded AUMOF. Despite the increase in provisions and operating expenses, the Group achieved a cash EPS of 17.1 cents per share, reflecting a 7% increase from the prior period. The successful pricing of a $400 million Australian asset-backed securitisation in May 2024 provides funding flexibility and supports the Group's growth plans.

Summary of 1H24 Results and Outlook

FleetPartners Group's 1H24 results showcased a robust performance, marked by significant growth in new business writings and assets under Management or Financed. The Group's strategic focus on directing more NBW to warehouse funding and the successful pricing of a $400 million Australian asset-backed securitisation demonstrate its commitment to sustainable growth. The Group's strong financial position, with no net debt and a net cash position of $10.8 million, provides flexibility for capital management and supports future organic and inorganic opportunities. Looking ahead, the Group aims to continue its focus on EPS growth through disciplined capital management, including on-market share buy-backs and investments in strategic opportunities such as Strategic Pathways and Accelerate, which are expected to deliver strong returns and sustainable EPS benefits for shareholders. The Group anticipates continued asset and revenue growth in future periods, supported by the elevated order pipelines and the normalization of the vehicle supply chain.