• Continuing operations revenue grew 7.9% to $276.8m
• Normalised UNPATA from continuing operations was $49.6m
• Onboard Finance novated lease receivables up 97% vs Dec 2023

McMillan Shakespeare Limited has reported its 1H FY25 interim results, with continuing operations revenue growing 7.9% to $276.8m and Normalised UNPATA from continuing operations at $49.6m. The company's Onboard Finance novated lease receivables were up 97% compared to December 2023, representing around 20% of Group Remuneration Services (GRS) novated lease volumes. The GRS segment demonstrated revenue resilience, growing Normalised Revenue to $143.7m, up 0.7%, despite the non-renewal of the South Australian Government contract. The Asset Management Services (AMS) segment delivered 2.4% revenue growth, while the Plan and Support Services (PSS) segment revenue increased by 6.0%. MMS continues to progress its 'Simply Stronger' strategy, focused on delivering long-term sustainable growth through superior digital experiences, technology-enabled productivity, and broadening solutions and relationships.

MMS expects 2HFY25 Normalised UNPATA to be higher than 1HFY25, with benefits expected from growth in novated sales, Oly, net new client wins, Simply Stronger efficiencies, and a reduction in non-recurring costs. Onboard Finance is expected to continue targeting around 20% of novated volumes, with a Normalisation adjustment of approximately ($8m) expected in FY25, the final year of Normalisation.

The company will focus on its strategic priorities of excelling in customer experience, driving simplicity and technology-enablement, and broadening its solutions and relationships. The FBT exemption for plug-in hybrids will end on 1 April 2025, while the exemption on battery EVs continues with the Federal Government committed to review the FBT EV Discount by mid-2027.