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Smartgroup Corporation Ltd H1 FY19 results – Solid Result

Jordan Baird

Jordan Baird is the head ASR Wealth Advisers client services desk and has been with the organisation since 2017. He first started investing in his early years. While he believes that investors should leave no stone unturned he has a particular interest in trading based on broad macroeconomic trends along with specific analysis of innovative up-and-coming companies.

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.




This article has been prepared by the Australian Stock Report Pty Ltd (AFSL: 301 682. ABN: 94 106 863 978) (“ASR”). ASR is part of Amalgamated Australian Investment Group Limited (AAIG) (ABN: 81 140 208 288 Level 13, 130 Pitt Street, Sydney NSW 2000).

This article is provided for informational purpose only and does not purport to contain all matters relevant to any particular investment or financial instrument. Any market commentary in this communication is not intended to constitute “research” as defined by applicable regulations. Whilst information published on or accessed via this website is believed to be reliable, as far as permitted by law we make no representations as to its ongoing availability, accuracy or completeness. Any quotes or prices used herein are current at the time of preparation. This document and its contents are proprietary information and products of our firm and may not be reproduced or otherwise disseminated in whole or in part without our written consent unless required to by judicial or administrative proceeding. The ultimate decision to proceed with any transaction rests solely with you. We are not acting as your advisor in relation to any information contained herein. Any projections are estimates only and may not be realised in the future.

ASR has no position in any of the stocks mentioned.

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