Strong performance in Refrigerated Logistics in the second half: For FY17, Automotive Holdings Group Ltd (ASX: AHG) reported 10.2% yoy decline in operating NPAT at $87.3 million in line with its guidance. However, statutory NPAT (Net profit after tax) was down 38.4% yoy to $55.5 million, primarily due to one‐off costs associated with the Refrigerated Logistics transformation program and restructuring of the Company’s operations. Moreover, FY17 was a challenging year in Automotive, given the acknowledged decline in the new vehicle market in Western Australia and the tightening of consumer credit conditions, which impacted the Company’s finance and insurance income. The stock has fallen 5.6% on August 25, 2017 at the back of the result. On the other hand, AHG has delivered a strong performance in Refrigerated Logistics in the second half of the year, with EBITDA up 68% on last year as the restructuring of the division began delivering expected improvements. Currently, the performance of dealerships in New Zealand and the eastern states of Australia has been strong and the group has commenced the restructuring of the Automotive division, while implementing several cost reduction initiatives that will mitigate anticipated insurance commission changes in FY2018.
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