- MotorCycle Holdings (MTO) has posted consistent results despite facing a challenging market
- Revenue for the half-year ending December 31, 2019, was up 3.1 per cent to $178.2 million
- Overall motorcycle sales also increased 3.5 per cent to 10,198 units sold
- The spike in revenue follows a national decline in motorcycle sales, which decreased 0.8 per cent during the period
- The company’s directors have not declared an interim dividend as to maximise acquisition opportunities
- Shares in MotorCycle Holdings are currently up 3.7 per cent to $1.68, with a market cap of $103.67 million
MotorCycle Holdings (ASX:MTO) has released resilient half-year results despite what it called “challenging trading conditions.”
The six months ending December 31, 2019, brought a 3.1 per cent increase in revenue to $178.2 million.
MotorCycle Holdings cited recent acquisitions and an increase in sales of roughly 0.4 per cent as key factors behind the improved performance. Overall motorcycle sales jumped 3.5 per cent to 10,198 units.
However, net profit for the period was down 7.7 per cent to $4.8 million. Earnings per share were also down 8.2 per cent to 7.8 cents.
The company’s CEO, David Ahmet, said that MotorCycle Holdings’ acquisition-based growth and diversification triggered an increase in sales and revenue despite a tough market.
“The company completed two dealership acquisitions in the second half of 2019, both of which are outperforming expectations, and we have continued to grow both new and used motorcycle sales across all brands, including Harley Davidson,” he said.
“We’ve also achieved volume growth in used motorcycles through a full contribution from five MCA stores, with an additional one expected to start trading by the end of the financial year.”
Mr. Ahmet also drew attention to indications that the overall new motorcycle market is beginning to stabilise.
A national decline of 0.8 per cent was reported, which is significantly less than drop-offs seen in previous periods.
“Comparatively, our retail stores have increased new motorcycle sales by one per cent, so we have again outperformed the overall national market and continued to grow our market share,” he continued.
MotorCycle Holdings’ directors have not declared interim dividends. The decision came from the company’s need to take advantage of any acquisition opportunities that may arise.
Shares in the company are currently up 3.7 per cent to $1.68, with a market cap of $103.67 million.