PWR 's H1 results released this morning was better than expected re-confirming my view that they currently represent a great value and growth opportunity.

Extract of release follows:

22 February 2022

Peter Warren Automotive Holdings Limited H1 FY22 Result:

Peter Warren Automotive Holdings Limited (ASX: PWR) (“Peter Warren” or “the Group”) announces its financial result for the half year ended 31 December 2021, delivering strong growth on prior year and performance well ahead of Prospectus forecasts

Highlights:

• Underlying Profit Before Tax (PBT) of $36.3 million, up 35% on prior year

• Acquisition of Penfold Motor Group in December 2021, providing immediate scale in the Victorian market

• Inaugural interim dividend of 9.0 cents per share, fully franked

• Strong financial position, with a capital structure that supports Peter Warren's growth plans 

Not a company or sector that gets much airtime here on SM, but thought it would be a useful datapoint.

Link (behind paywall).

The gist is this: Mercedes are going to a fixed price sales model, paying dealers a commission to deliver a vehicle instead of selling stock to them, and essentially writing down the value of investments that dealers have made in the respective brands to being essentially worthless.

Honda have tried the fixed price model and failed dismally, Tesla have only ever done fixed price and are doing a roaring trade. So it is more than just business model.

This is arguably the first test of a sales leader in its segment (premium vehicles), and if Daimler AG are successful in getting this model up, you can bet the other manufacturers wont be far behind in trying to cut out the middle-man.

Also affects the ASX listed competitor Autosports Group, although arguably to a lesser degree given new car sales form a smaller portion of its revenue.