Case Studies
Issue No. 23 - June/Nuly 2005
Adtrans
Adtrans rolls on to top dividend
In February, the SA based automotive trading enterprise Adtrans Group rewarded its investors’ good judgment with a hefty dividend increase.
Shareholders in the listed Adtrans Group Limited get their fourth successive increase in interim dividend this year, after the powerhouse car and truck retailer achieved record after-tax earnings in the opening half of the 2004-2005 financial year.
In a period of unprecedented sales of motor vehicles in Australia, Adtrans – one of the top truck retailers in New South Wales and Victoria and with major car and truck operations in South Australia – lifted net operating profit by 10.7% from $3.68 million to $4.08 million in the six months ended 31 December 2004.
“This has been a particularly buoyant period for the Group, with generally improved performances across all our operations,” Adtrans Chairman, Graeme Bignell said, announcing the dividend.
“Booming national motor vehicle sales do not necessarily mean an automatic sales improvement for retailers, but we are confident of a very good result in the current half year to 30 June 2005, despite the ever-competitive nature of the industry in which we operate.”
“New Year car and truck sales have opened strongly and, significantly for the future, we hold an excellent order bank for trucks in our key Sydney, Melbourne and Adelaide outlets.
“This is a most pleasing outlook for our truck operations, especially following action taken last year to improve sales and profits from our large Sydney and Adelaide truck outlets.”
Mr Bignell said used car and truck sales were slightly ahead of budget in the latest December half year and the Group received another strong earnings contribution from its important service and parts operations.
Adtrans claims a top three spot among truck retailers in Australia and is one of the largest car retailers. Current vehicle franchises held by the Group include Ford, Toyota, Daihatsu, Hyu...
