SG Fleet shares rise on FY profit boost, special dividend
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The news: Shares in SG Fleet gained at the start of trading after the vehicle fleet management company reported a rise in full-year profit and declared a special dividend.
The numbers: Shares were up 2.1% to $3.37 by 11:30am AEST.
SG Fleet reported a 6.7% rise in profit after tax to $89.7 million as total net revenue grew 11.4% year on year to $390.1 million.
The company declared a fully franked special dividend of 15 cents per share, in addition to a final dividend of 9.33 cents, bringing the total dividend for the financial year to 33.93 cents.
It guided underlying NPATA of between $88 million and $95 million for the 2025 financial year.
The context: SG Fleet said that going into FY25 it expects an increase in interest on corporate debt and a temporary increase in the company's technology spend in the lead-up to the final phase of its migration with fleet management operator LeasePlan.
What they said: "While we are confident earnings will remain strong, we also expect movements in our financial profile as our operating environment gradually returns to a more stable condition after a period in which external factors such as the supply disruption and its impact on used values led to an exceptional performance in some of our revenue lines," said chief executive Robbie Blau.
The source: ASX announcement
