Image source: Company update
Highlights
- In the first half of FY24, Smartgroup saw a 27.4% YoY revenue increase to AUD 148.5 million.
- EBITDA rose by 20% YoY to AUD 56.2 million in 1HFY24, while NPATA grew by 16% YoY to AUD 34.1 million
- In 2HFY24, SIQ plans to enhance digital investments in leasing and salary packaging to boost productivity and customer experience.
Smartgroup Corporation Ltd (ASX:SIQ) is an ASX-listed company that offers fleet management, outsourced administration, software, distribution and group services.
Growth prospects for administrative and support servicesThe seasonally adjusted data published by the Australian Bureau of Statistics on 13 November 2024 indicates that in the September 2024 quarter, Wage Price Index (WPI) grew by 0.8% and 3.5% annually. The contribution from the administrative and support services was the highest with quarterly growth of 2.1%.
Recent financial performance of SIQ
In the six months ended 30 June 2024, revenue of SIQ jumped 27.4% YoY to AUD 148.5 million, backed by an increase in novated leasing volumes during the reported period, supported by improvement in vehicle supply and demand-generative activities. During the reported period, EBITDA increased by 20% YoY to AUD 56.2 million and NPATA surged by 16% YoY to AUD 34.1 million, driven by increase in revenues in 1HFY24.
Outlook
In 2HFY24, the company is committed to accelerate digital investments in leasing and salary packaging products to increase productivity and customer experiences. Furthermore, the focus is on improving cost efficiency while achieving growth through focus on customers and clients.
Share performance of SIQ
SIQ shares closed 2.99% lower at AUD 7.79 apiece on 14 November 2024. Over the past year, SIQ’s share price has dropped by almost 7.44%, while in the last three months, the share price has decreased by 6.03%.52-week high of SIQ is AUD 10.798, recorded on 1 March 2024, and 52-week low is AUD 7.48, recorded on 27 August 2024.

SIQ 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 14 November 2024. The reference data in this report has been partly sourced from EODHD/Others.






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