FleetPartners Group (ASX:FPR) recorded a year of robust growth for the financial year ending 30 September 2024.
The company, a leading fleet management and vehicle leasing company operating in Australia and New Zealand, serves corporate and small fleet customers across the region and highlighted several milestones in its latest annual report.
FleetPartners achieved a 12.5% revenue increase to $761.6 million, up from $676.8 million in fiscal 23. New Business Writings (NBW) grew a record 21%, supported by strong demand for electric vehicles (EVs) and successful customer acquisition initiatives. Assets under management or finance (AUMOF) increased 11%, reflecting sustained growth in the company’s operational scale.
Despite these gains, net profit after tax, depreciation and amortization (NPATA) fell 0.7% to $87.7 million, while statutory profit fell to $77.9 million from $81. $0 million in fiscal year 23. The decline in profitability was attributed to higher operating expenses and provisions for bad debt, which increased by $2.9 million due to the rapid expansion of the renewed leasing portfolio.
Key parameters also revealed areas of pressure. Payroll costs increased, adding $4.7 million to overall expenses, while interest expenses jumped 35% to $16.7 million, reflecting the higher cost of debt financing in the current economic environment. interest rates.
FleetPartners has pursued strategic initiatives under the “Strategic Pathways” and “Accelerate” programs. These efforts include consolidating brands and technology systems, which are expected to deliver $6 million in annual cost savings by fiscal year 25, and capitalizing on the growing electric vehicle market. Electric vehicles accounted for 53% of new leases renewed during the year, supported by government incentives such as the Electric Car Discount. The company has also maintained zero carbon certifications in Australia and New Zealand, demonstrating its commitment to sustainability.
CEO Damien Berrell noted: “Our record performance reflects the strength of our strategy and our commitment to delivering value to our customers and shareholders. At the same time, we remain focused on cost optimization and navigating the evolving market landscape.”