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Highlights

  • ASG has acquired B S Stillwell Motor Group Pty Ltd recently for AUD 53 million
  • In FY24, revenue rose 11.6% YoY to AUD 2,646.9 million, despite a competitive market, while statutory NPAT declined by 7.8% due to a significant increase in interest costs
  • The Stillwell acquisition is projected to boost revenue by AUD 260 million in FY25

Autosports Group Limited (ASX: ASG) is an ASX-listed company engaged in the sale of used and new motor vehicles and provides a range of high-quality automotive options. The company also provides finance and insurance solutions and excels in aftermarket services, including collision repair, spare parts sales, and motor vehicle servicing.

Recently, the company made significant addition to its portfolio with the acquisition of B S Stillwell Motor Group Pty Ltd, now operating under the wholly owned subsidiary, AGS Investment Holdings Pty Ltd.

The Stillwell Motor Group manages MINI, Volvo cars, BMW, BMW Motorrad, Ducati and MG dealerships in Victoria. Total consideration for the transaction was AUD 53 million, comprising approximately AUD 45 million for goodwill and around AUD 8 million for net tangible assets.

Financial performance in FY24

In the financial year 2024, the company recorded 11.6% YoY increase in its revenue to AUD 2,646.9 million, despite competitive landscape in the new vehicle market where inventory levels remain elevated across the industry. To sustain and increase customer interest, several marketing strategies and price promotions were introduced by the company during the reported period.

In FY24, statutory NPAT dropped by 7.8% to AUD 61.5 million due to a 68.7% rise in interest costs.   

Outlook

The acquisition of Stillwell Motor Group is expected to add nearly AUD 260 million in revenue in FY25, especially from October 2024 to June 2025. Through strategic acquisitions, the company anticipates AUD 250 million in annual revenue growth.

The new vehicle market is expected to remain competitive, but the market initiatives and consumer incentives are anticipated to support stable like-for-like revenue in the segment.

Moreover, revenue from servicing, collision repairs, parts and used vehicles are expected to increase as per the trends, benefiting from cost management and stable margins.

Share performance of ASG

ASG shares closed 0.92% lower at AUD 2.16 apiece on 4 November 2024. In the past one year, ASG’s share price has dropped by almost 10%, while in the past six months, it has dropped by around 16.92%.

52-week high of ASG is AUD 2.77, recorded on 2 April 2024 and 52-week low is AUD 2.02, recorded on 9 September 2024.

ASG 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 4 November 2024. The reference data in this report has been partly sourced from EODHD/Others.