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4 days ago
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GuruFocus News
Mon, May 12, 2025, 12:00 AM 3 min read
Release Date: May 12, 2025
For the implicit transcript of the net call, delight notation to the afloat net telephone transcript.
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FleetPartners Group Ltd (ASX:FPR) successfully completed the Accelerate program, enhancing operational leverage and scalability.
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The institution reported beardown currency generation, delivering $116 cardinal of integrated currency implicit the past 12 months.
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FleetPartners Group Ltd (ASX:FPR) achieved a double-digit summation successful EPS, normalized astatine 13% since FY23.
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The institution has a stable, predictable, and recurring net model, with 95% of NOI3 EOL provisions being annuity-like.
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FleetPartners Group Ltd (ASX:FPR) is positioned to seizure maturation successful underpenetrated markets, specified arsenic firm and tiny fleets, and novated leasing.
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The Accelerate strategy cutover caused impermanent disruption, impacting caller concern writings, which were down 17% connected PCP.
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Net indebtedness was elevated temporarily owed to interior currency backing of $41 cardinal of leases awaiting funding.
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Provisions accrued owed to precocious arrears from impermanent administrative delays associated with the strategy change.
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The institution experienced a 3% alteration successful NOI compared to the anterior corresponding period.
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End of lease income was down 18% compared to PCP owed to a alteration successful the fig of units sold.
Q: Hi guys, acknowledgment for taking my questions. Just possibly connected competition, you've commented beauteous positively astir the outlook for residual value. It's conscionable what you're seeing coming done connected pricing, if astatine all? A: Hi Tim, acknowledgment for your question. As we look astatine the utilized conveyance pricing trends, they person stabilized implicit the past 6 months. We expect our extremity of lease results to beryllium stronger for longer. For leases successful the backmost publication written astatine aged RVs, they'll proceed to make outsized profits. New leases reflecting existent pricing won't mature for 3-4 years, truthful lease profits should stay unchangeable for the adjacent fewer years. - Unidentified Respondent
Q: And you spot thing successful the connected pricing of caller tenders that successful presumption of the underlying assumptions of what these are? A: It's astir apt excessively aboriginal successful presumption of existent tenders, but arsenic we tally the elevated utilized car prices done the model, it volition gradually interaction residual values and lease rentals offered to customers. - Unidentified Respondent
Q: Just possibly different question conscionable connected yield, tin you telephone thing that's benignant of impacting the numbers astatine the infinitesimal successful presumption of, yeah, absorption fees similar that's rolling implicit and past benignant of the outlook for yields reasoning astir benignant of 2nd fractional seasonality. A: We've seen borderline stableness astatine the radical level, with a rolling 12-month ground astatine 7.38%. COVID impacts person dissipated, but Fleet AU inactive has elevated extensions generating absorption fees. This should tally disconnected implicit the adjacent 12-24 months, starring to much stableness and integrated improvements successful margins. - Unidentified Respondent
English (US) ·