Net Liabilities Persist as Autosports Group Accelerates Acquisitions and Growth
Autosports Group Limited reported a robust half-year with revenue rising 10.9% to $1.52 billion and profit after tax more than doubling to $21.68 million. The company declared a fully franked interim dividend of 5 cents per share, reflecting confidence in its growth trajectory.
- Revenue increased 10.9% to $1.52 billion
- Profit after tax attributable to owners surged 108.2% to $21.68 million
- Declared fully franked interim dividend of 5.0 cents per share
- Completed key acquisitions including Barry Bourke Motors and Gulson Canberra
- Maintains net current liability position but supported by strong cash flow and financing
Strong Financial Performance
Autosports Group Limited has delivered a standout half-year result for the six months ending 31 December 2025, with revenue climbing 10.9% to $1.52 billion. More notably, profit after tax attributable to shareholders more than doubled, rising 108.2% to $21.68 million. This significant uplift underscores the company’s successful execution of its growth strategy amid a competitive automotive retail environment.
Strategic Acquisitions Drive Growth
The half-year was marked by several strategic acquisitions that have bolstered Autosports Group’s market footprint. Key transactions included the purchase of trading assets from Gulson Canberra, Mercedes-Benz Canberra, and a major acquisition of ten Barry Bourke Motors dealerships across Victoria. These deals, collectively valued at over $46 million, have expanded the Group’s portfolio across luxury and prestige brands, positioning it well for future earnings growth.
Dividend and Capital Management
Reflecting confidence in its financial health, the Board declared a fully franked interim dividend of 5.0 cents per share, payable in May 2026. This follows a final dividend of 4.5 cents per share paid in November 2025. The company also issued shares as part of acquisition consideration and performance rights vesting, increasing issued capital to over 205 million shares.
Balance Sheet and Cash Flow Considerations
Despite reporting a net current liability position of approximately $184 million, Autosports Group maintains a strong liquidity profile supported by $33 million in cash and substantial undrawn finance facilities. The Group generated $22.4 million in operating cash flow during the half-year and has the backing of its financiers, underpinning its going concern status. The company’s capital loans and bailment finance facilities remain well-managed with no anticipated covenant breaches.
Outlook and Market Position
Autosports Group continues to expand its presence with greenfield operations such as Geely Leichhardt and Volvo Cars Gold Coast, alongside property acquisitions aimed at supporting dealership relocations and growth. While the integration of recent acquisitions remains provisional in accounting terms, the Group’s core earnings before acquisition and restructuring expenses nearly doubled, signaling robust underlying performance. Investors will be watching how these expansions translate into sustained profitability in the coming periods.
Bottom Line?
Autosports Group’s bold acquisition strategy and strong profit surge set the stage for continued growth, but integration risks and net liabilities warrant close monitoring.
Questions in the middle?
- How will the integration of recent acquisitions impact future earnings and cash flow?
- What are the risks associated with the Group’s net current liability position amid ongoing expansion?
- Will Autosports Group maintain or increase its dividend payout given capital expenditure and acquisition costs?
