– By Caroline Falls –
SG Fleet, one of four Australian Stock Exchange listed fleet services companies, cited an acceleration in the takeup of telematics and tech solutions for its double-digit profit growth in the year ended June 30.
“Increasing demand for telematics and other technology-based solutions has been a common element across all the geographies in which we operate. The addition of a telematics solution creates a clear uplift in profitability, so we believe that this trend will provide us with healthy additional growth for a long time,” SG Fleet CEO Robbie Blau said in a statement on the results.
SG Fleet, which operates in Australia, New Zealand and the United Kingdom, posted a net profit after tax of $59.6 million, up 26.9 percent from the previous year. The result was ahead of earlier guidance and better than market expectations. The group announced a final dividend of 9.265 cents a share, 30.7 percent more than a year earlier.
The group had some 146,357 vehicles under fleet management in the year, a big leap compared with 109,448 a year earlier. SG Fleet said the contract win to manage NSW StateFleet and acquisitions of Fleet Hire and Motiva in the UK increased the group’s corporate fleet.
Major developments during the year included the on-boarding of the NSW Government contract, which was won at the end of the previous financial year. SG Fleet said that the NSW contract had evolved from the initial product as additional value-add solutions were provided to various government agencies.
“The expansion of the range of products and services we provide to our government customers mirrors that in the private sector and is clear evidence of a trend towards greater sophistication and value-add in fleet management services, something that plays into SG Fleet’s hands,” Blau commented.
In the UK, “The integration of Fleet Hire and Motiva has been running ahead of schedule alongside ongoing operations and the three businesses have come together seamlessly,” Blau said. “Bringing together the various teams has had a very positive impact on the cross-selling of products to the wider customer book. Combined with the premises, funding, purchasing and disposal synergies, this has established a strong platform for progress during the current year.”
Blau said that business in New Zealand had also prospered. “We are rapidly growing our reputation as well as our profitability,” there.
Blau said the group’s finances enabled the group to maintain its acquisitive outlook.
“As to our inorganic growth strategy, we are in good financial health and in a strong position to fund new strategic initiatives. If opportunities to build scale arise, we will not hesitate to investigate them,” Blau said.
He said SG Fleet has had a promising start to the new financial year.
“There is a strong pipeline across the private sector and government for fleet management and in our consumer and novated business, the focus is on winning additional customers and increased penetration within the existing eligible pools.”
