FleetPartners flags 20% drop in new business after system change

The news: Vehicle leasing company FleetPartners said it expects to see a 20% decline in first-half new business writings after switching to a single operating system during the half, as it also cited unfavourable macroeconomic conditions in New Zealand.

The numbers: The company said that operating system transfer was part of its transformation program, launched in FY23, which is expected to deliver at least $6 million in annual cost savings.

The group reiterated its full-year operating expense guidance of between $91 million and $92 million. FleetPartners also reached its $30 million share buyback target for the first half.

The context: The system change resulted in a new business backlog that is expected to be cleared by the end of April, the fleet management provider said.