Sharechat Logo

NZ Automotive Investments Limited (NZX: NZA) Delivers Net Profit Above Guidance for FY21

Friday 28th May 2021

Text too small?

NZ Automotive Investments Limited (NZAI) today reports full year earnings to 31 March 2021 (FY21), achieving NPAT slightly above guidance and delivering a strong dividend yield, demonstrating the ongoing profitability and resilience of the business.

FY21 revenue and income2 of $66.1m decreased by $10.3 million on FY20, with an estimated $7.4 million due to the effects of Covid-19 (NZAI could not fully trade for 68 days or 19% of the year) and a further estimated $6.9 million due to the impact from closing five less profitable dealerships. These revenue reductions were offset by growth of $3.3 million in the underlying 2 Cheap Cars retail business as well as $0.7 million growth in finance income from the automotive finance business (NZ Motor Finance).

The Board of Directors are pleased to declare a dividend of 5.0 cps for FY21, to be paid on 17 June 2021. The dividend represents 60% of underlying net profit after tax1 in accordance with the Group’s dividend policy. This represents a gross dividend yield of approximately 6.5% based on the share price of $1.07, being the closing price on 27 May 2021. The record date will be 9 June 2021.

In the second half of FY21, sales volumes from existing dealerships recovered to FY20 levels. Group second half FY21 revenues of $35.5m versus $37.2m in the second half of FY20 were based on a reduced dealership footprint and the effects of the February/March lockdown in Auckland.

Outlook

NZAI’s long-term strategy is to leverage its retail business to build a diversified automotive services group. NZAI’s automotive finance business will continue to be a focus area for growth.

CEO David Page said: “NZAI remains focused on the digital transformation of the business and its processes, as well as growing and investing in our team, securing relevant partnerships and maximising operational efficiency.

“Growing the automotive finance business loan book will continue to be a key focus. We also have a long-term strategy when it comes to electric and hybrid vehicles – this will be an area of focus to grow market share, and we will be looking to leverage opportunities with electric and hybrid vehicles over time.”

Demand remains strong for used vehicles across 2 Cheap Cars dealerships in April and May 2021.

Please see the links below for details

NZAI FY21 Results announcement

NZAI FY21 Results announcement form

NZAI Financial Statements 31 March 2021

NZAI FY21 Results presentation

NZAI Distribution notice

Source: NZ Automotive Investments Limited



  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

Pacific Edge Limited (NZX: PEB) Placement Upsized Following Strong Demand
24th September 2021 Morning Report
23rd September 2021 Morning Report
Pacific Edge Limited (NZX: PEB) Dual Lists on ASX; Announces Capital Raise to Accelerate
Tower Limited (NZX: TWR) Updates Guidance
South Port New Zealand Limited (NZX: SPN) 2021 Annual Report
22nd September 2021 Morning Report
Kathmandu Holdings Limited (NZX: KMD) FY21 Annual Results Announcement
Stride Property Ltd & Stride Investment Management Ltd (NZX: SPG) Update on Demerger and Office Fund
21st September 2021 Morning Report