FleetPartners Group (ASX:FPR) has reported a year of robust growth for the financial year ending 30 September 2024.
The company, a prominent fleet management and vehicle leasing company operating in Australia and New Zealand, serves both corporate and small fleet customers across the region, and has highlighted several milestones in its latest annual report.
FleetPartners achieved a 12.5% increase in revenue to $761.6m, up from $676.8m in FY23. New Business Writings (NBW) grew by a record 21%, supported by strong demand for electric vehicles (EVs) and successful customer acquisition initiatives. Assets Under Management or Financed (AUMOF) rose by 11%, reflecting sustained growth in the company’s operational scale.
Despite these gains, Net Profit After Tax and Amortisation (NPATA) edged lower by 0.7% to $87.7m, while statutory profit fell to $77.9m from $81.0m in FY23. The decline in profitability was attributed to higher operating expenses and provisions for bad debts, which rose by $2.9m as the novated lease portfolio rapidly expanded.
Key metrics also revealed areas of pressure. Employee costs increased, adding $4.7m to overall expenses, while interest expense jumped by 35% to $16.7m, reflecting the higher cost of debt financing in the current interest rate environment.
FleetPartners has been pursuing strategic initiatives under its “Strategic Pathways” and “Accelerate” programs. These efforts include consolidating its brands and technology systems, which are expected to deliver $6m in annual cost savings by FY25, and capitalising on the growing EV market. Electric vehicles represented 53% of new novated leases during the year, supported by government incentives such as the Electric Car Discount. The company also maintained carbon-neutral certifications in Australia and New Zealand, demonstrating its commitment to sustainability.
CEO Damien Berrell noted: “Our record performance reflects the strength of our strategy and our commitment to delivering value for our customers and shareholders. At the same time, we remain focused on optimising costs and navigating the evolving market landscape.”