FleetPartners Group Business Update
| Stock | Fleetpartners Group Ltd (FPR.ASX) |
|---|---|
| Release Time | 26 Mar 2025, 8:23 a.m. |
| Price Sensitive | Yes |
FleetPartners Group Provides Business Update
- Completed $30M on-market share buy-back program
- Accelerate transformation program successfully completed
- Expects $6M in annualized cost savings from Accelerate
FleetPartners Group Limited (ASX:FPR) has provided an update on its business activities. The company has reached the $30 million buy-back amount authorized by the Board for the first half of fiscal year 2025 (1H25). Since the buy-back program began in May 2021, the Group has purchased and cancelled over $255 million of shares, representing 33% of the shares on issue in May 2021. The Accelerate program, launched in FY23, has been successfully completed, with the new operating system now live in Australia. This is expected to deliver at least $6 million in annualized cost savings, with approximately half of the savings benefiting FY25 operating expenses and the full-year effect to benefit FY26. The consolidation of multiple brands, operating systems, and processes has strengthened the Group's competitive position to grow and maximize profitability. For the year-to-date period ended 28 February 2025 (YTD25), the business has maintained good earnings momentum, with Group performance largely consistent with the 1Q25 trading update. Assets under management or financed (AUMOF) have continued to grow compared to the prior corresponding period (pcp), despite new business writings (NBW) for 1H25 expected to be around 20% lower than pcp due to temporary impacts from the system cutover and macroeconomic conditions in New Zealand. With the growth in AUMOF, net operating income pre-EOL and provisions for YTD25 was 9% higher than pcp. End of lease income per vehicle remains elevated, and the Group expects it to remain higher for longer. Based on YTD25 actual results and expectations for March, the Group expects NPATA for 1H25 to be in the range of $37.5 - $39.5 million.
The Group expects at least $6 million in annualized cost savings from the Accelerate program, with approximately half of the savings benefiting FY25 operating expenses and the full-year effect to benefit FY26.