Smartgroup Corporation Ltd

ASX:SIQ

Smartgroup Corporation Ltd

ASX:SIQ
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$9.03 (+0.3%)
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#396
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2
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Reports (2) My Report Forum Investors
Forum Topics SIQ SIQ CY2024 Results

Pinned straw:
Rick
Added 9 months ago

The Smartgroup CY24 results look better than I expected. I hope the market likes them as much as I do! I went out on a limb for this one. Hopefully it pays off!

CY 2024 Highlights

• Revenue of $305.8m, up 22% on CY 2023 (pcp)

• Operating EBITDA of $118.7m, up 18% on pcp

• EBITDA margin was 39%, (CY 2023: 40%), with H1 2024 at 38%, including South Australia Government contract implementation costs, and H2 2024 at 40%

• NPATA of $72.4m, up 15% on pcp, Statutory NPAT of $75.6m, up 22% on pcp

• 20% increase in novated leasing settlements on pcp, up 4% on H1 2024

• Electric Vehicles (EV) accounted for 44% of CY 2024 new car lease orders, including plug-in-hybrid EVs (PHEV) at 13%

• Internal Combustion Engine (ICE) new car lease orders also increased 12% compared to pcp

• Strong operating cash flow at 108% of NPATA

• Capitalised IT development costs of $12.0m, in line with guidance

• Strong and flexible balance sheet with low net debt position at 0.4x EBITDA2

• Final ordinary dividend declared of 20 cents per share (cps) and special dividend declared of 11 cps, both fully franked3; total dividends declared in CY 2024 represent 90% of CY 2024 NPATA

Held IRL (7%)
SudMav
Added 9 months ago

Great job @Rick. Your analysis and information on this one has been amazing and the returns support the work you have done

we just transitioned our work from Maxxia to Smart group here in SA and I have to admit their service exceeds anything we have received to date.

the user interface is very friendly and it allows you to make changes to your deductions or claim expenses in an efficient manner. maxxia was horrible and they would take weeks to implement these changes and payments would be auto allocated to ‘buckets’ of funding which sometimes took 3-4 pay cycles to pay a claim.

the fees for this service are also much lower than we were paying so all around a much better company.

this one is on my watch list for now until I can do some further analysis after reporting season

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Rick
Added 9 months ago

Thanks @SudMav. In your analysis the thing to watch with Smartgroup is this: “In H2 2024, EVs represented 45% of all new car novated orders, including PHEVs at 17%. It is important to note that PHEVs will no longer benefit from the Federal Government Electric Car Discount Policy after 31 March 2025.” This will not help CY25 earnings. Cheers Rick.


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Rick
Added 9 months ago

@SudMav I forgot to thank you for sharing your experience with Smartgroup. My daughter who works at GHD used Smartgroup to salary sacrifice a new Tesla and she likes the experience also. They’ve invested a lot of capital into improving user experience over recent years. I think it is starting to reap returns now. They have gained business from a few competitors over the last year or two.

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