FleetPartners Reports 6% Asset Growth, 17% Drop in New Business Writings

Transformation Milestone Achieved

FleetPartners Group Limited (ASX: FPR) has successfully completed its Accelerate transformation program, a multi-year initiative that consolidated the company’s operations onto a single, integrated system. This milestone, achieved in February 2025, is expected to deliver at least $6 million in annualised cost savings and enhance the customer experience throughout the lease lifecycle.

Group CEO Damien Berrell described the completion as the start of a new chapter, positioning FleetPartners to execute its strategic growth agenda with improved operational capabilities and agility.

Financial Performance Reflects Mixed Dynamics

For the half-year ended 31 March 2025, FleetPartners reported assets under management or financed (AUMOF) of $2.3 billion, marking a 6% increase compared to the prior corresponding period. Notably, balance sheet funded AUMOF grew 14%, aligning with the company’s strategy to focus on higher-return leases funded directly from its balance sheet.

However, New Business Writings (NBW) declined 17% to $370 million, influenced by the unwind of a strong prior period order pipeline and temporary disruptions from the Accelerate system cutover in February. Excluding the pipeline effect, NBW was down 11%, with management expecting improvements as operations normalize through the remainder of the fiscal year.

Net operating income before End of Lease (EOL) income and provisions rose 8%, driven by asset growth, though EOL income itself fell 18% due to fewer vehicle disposals. Consequently, Net Profit After Tax excluding Amortisation (NPATA) declined 7% overall but increased 10% when excluding EOL income, underscoring the underlying operational strength.

Operational Challenges and Outlook

The Accelerate system cutover caused temporary operational disruptions, including increased arrears and provisions, as well as a short-term impact on net debt due to $41 million of leases funded via cash and corporate debt. Management expects these effects to normalize in the second half of FY25.

FleetPartners maintained strong cash generation with a cash conversion rate of 112%, and its balance sheet remains robust with a net debt position of $17.1 million as of 31 March 2025. The company also successfully executed a NZ$300 million asset-backed securitisation in late 2024, enhancing funding flexibility.

Capital Management and Strategic Leadership

The group announced a $25.3 million on-market share buy-back for the second half of FY25, reflecting 65% of 1H25 NPATA and continuing its capital return strategy. Since FY21, FleetPartners has returned $255 million to shareholders and cancelled 33% of shares on issue.

In a strategic move to drive future growth, FleetPartners appointed James Allaway as Chief Strategy Officer. Allaway returns to the company from UBS, bringing experience in advisory and capital markets, and will lead the next phase of growth initiatives.

Despite global uncertainties, FleetPartners remains confident in its stable operating environment, robust customer demand, and tender activity. The company is well positioned to capitalize on organic and inorganic growth opportunities enabled by its enhanced operational platform.