Smartgroup Corporation Ltd. (ASX: SIQ) provides a range of employee management services for organisations across Australia. These services include salary packaging, novated leasing, fleet management, vehicle buying, payroll services, share plan administration and workforce optimisation. Smartgroup has a market capitalisation of A$1.18 billion.
What are the results from Smartgroup FY19?
On Friday (16 August 2019) Smartgroup released its H1 FY19 results. The main points are as follows:
- Revenue for H1 FY19 is A$125.8 million, up 3 per cent from H1 FY18.
- NPAT for H1 FY19 is A$31.4 million, up 7 per cent from H1 FY18.
- NPATA per share for H1 FY19 is A30.7 cents, up 5 per cent from H1 FY18.
- Interim 2019 dividend per share (to be paid 16 September 2019) is 21.5 cents (fully franked)
On the positive side, Smartgroup’s novated leasing volumes have continued to grow, despite the downturn in private new vehicle sales.
What is the outlook for Smartgroup?
Smartgroup did not provide specific details about their outlook. However, Smartgroup Chief Executive Officer Deven Billimoria said, “It has been another successful 6 months for the Group with positive financial performance, client growth and continued success in expanding our service offering. We have made progress with the integration of acquired businesses and we remain focused on operational excellence and improving customer outcomes”.
What is the market reaction?
The initial market reaction to SIQ H1 FY19 results is positive. Today (19 August 2019) Smartgroup is up 21.9 per cent and is currently trading at a price of A$11.02 (10.45am). Smartgroup has a P/E ratio in high teens and has an annual dividend yield of 4.7 per cent.
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