- McMillan Shakespeare Group has delivered $549.7 million in revenue for FY19 — up 0.8 per cent from FY18
- It earned an underlying net profit after tax and amortisation of $88.7 million — down 5.1 per cent from last year
- McMillan also confirmed its intention to return roughly $80 million to shareholders through an off-market ordinary share buy-back
Australia’s leading provider of salary packaging, management services, and fleet financing, McMillan Shakespeare Group, released its 2019 annual report this morning.
In the report, the company outlined a 2019 revenue of $549.7 million and underlying net profit after tax and amortisation (UNPATA) of $88.7 million.
These numbers are more modest than the last financial year’s revenue of $545.4 million and UNPATA of $93.5 million, and Chairman Tim Poole said the most recent figures reflect difficult trading conditions, increased competition, and a changing environment.
The FY19 result was supported by strong operational performance in McMillan’s core Group Renumeration Services (GRS) business, a 2.5 per cent increase in salary packages, and a 7.4 per cent increase in additional leasing units.
The additional lease sales growth saw McMillan outperform the broader retail new car sales market in Australia by 14 per cent.
Investment in its Beyond 2020 program remained on track, comprising of $3.1 million in operating expenses and $6 million in capital expenditure.
The Beyond 2020 program aims to reduce cost and improve sales conversion while also delivering improved customer experiences. This program began to deliver results in FY19.
A significant achievement of the program was the successful implementation of a dedicated Motor Dealer Portal, which was rolled out to 540 dealers nationwide.
McMillan hit several significant milestones over the year, including the retention of major long-term clients for its core GRS. It also secured substantial new contracts in this area.
The company also announced today it confirms its intention to return roughly $80 million to shareholders through an off-market ordinary share buy-back.
The buy-back will be funded from existing cash reserves and it will open on September 11 and close October 11.
The buy-back is optional and shareholders who choose not to participate and keep their shares are expected to benefit from an improvement in earning per share and return on equity.
McMillian’s share price is up 17.97 per cent today, trading for $15.30 in a $1.092 billion market cap at 2pm AEST.