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Business Description: Automotive Holdings Group Limited (AHE) is a motoring retail and logistics group. The Group operates commercial vehicle dealerships throughout Australia and New Zealand. The company operates logistics businesses throughout Australia through its subsidiaries.
Strategy Analysis: In the short term, AHE is focused on maximising returns from its existing businesses via an emphasis on cost control, inventory management and protection of margins. The development of 'Automotive Hubs´ such as Wangara and Rockingham in WA and Castle Hill in NSW are a key strategy. AHE's longer-term growth strategy is to pursue selective acquisitions across Australasia that creates long-term value for shareholders. AHE aim to establish new dealerships on greenfield sites, add new franchise brands to the automotive retailing portfolio, expand the logistics business through broadening the service offering to customers and focus on customer service and staff retention.
Automotive Holdings reported NPAT down 48.3% to $31.22m for the year ended 30 June 2011. Revenue from ordinary activities were $3,34bn, up 3% from last year. Basic and Diluted EPS were 13.5 cents compared to 26.7 cents last year. The net operating cash inflow was $66.45m compared to an outflow of $133,000 in the pcp. The final dividend declared was 10 cents, taking the full year dividend to 17 cents compared with 17 cents last year.
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