FleetPartners Group Limited (ASX:FPR) Announces $30M Share Buy-Back and Completes Business Transformation
Share Buy-Back Program
FleetPartners Group Limited has reached the first half 2025 share buy-back amount authorised by the Board of $30 million. Since May 2021, the Group has purchased and cancelled over $255 million of shares, representing 33% of shares on issue in May 2021.
Accelerate Transformation Program
The Accelerate program, launched in FY23, has been successfully completed with the new operating system now live in Australia. The consolidation of multiple brands and processes is expected to deliver at least $6 million in annualised cost savings, benefiting FY25 and FY26 operating expenses.
Trading Performance YTD25
FleetPartners has maintained good earnings momentum, consistent with the 1Q25 trading update. Assets under management or financed has grown compared to the previous corresponding period, despite net business writings for 1H25 expected to be approximately 20% lower due to temporary system cutover impacts and macroeconomic conditions in New Zealand. The Group expects to clear the net business writings backlog by the end of April 2025.
Net operating income pre EOL and provisions for YTD25 was 9% higher than the previous corresponding period. End of lease income per vehicle remains elevated at $5,809 for YTD25, with expectations to remain higher longer due to stabilising used car prices. Based on actual results and March expectations, NPATA for 1H25 is projected to be in the range of $37.5 – $39.5 million. The Group expects to release its results for the half-year ended 31 March 2025 on 12 May 2025.
Executive Comments
Group CEO and Managing Director, Damien Berrell, commented: “The successful completion of the Accelerate program, and the transformation it represents, is an important milestone for the Group. This achievement reflects the hard work, resilience, and collaboration of our entire organisation and now positions the Group to reach its full potential.”
Motley Fool contributor Aaron Shaw has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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