29-May-2020:  FY20 Trading Update

Trading results for both April and May [month-to-date] have surpassed expectations and while market volatility still exists, it has certainly diminished. The RPM board is now in a position to make short term commentary with reasonable certainty.  
 
RPM’s Tyre and Wheel Division has exceeded our forecasts and is surpassing the overall performance of the tyre and wheel industry, mainly driven by increased demand for TBR and Commercial Tyres and the inability of our competitors to maintain consistent supply.  RPM is also pleased to report that our recent expansion in this sector is proving successful. 
 
RPM’s Manufacturing Businesses have also seen improved sales figures driven in part by strong demand for components in repairs and roadside, as well as performance and accessories. 
 
It should be noted that as predicted, our retail businesses have experienced significantly reduced turnover, but Job Keeper and the cash flow boost have ensured that these businesses remain viable in this quarter. Cost reductions and reduced hours have resulted in improved performances across the Group. 
 
The Group’s primary strategy remains on course, with growth [both acquisitional and organic] at the forefront.  Now that management has resolved the initial challenges resulting from the onset of Covid-19, it can refocus and continue to pursue acquisitional opportunities.  While there may be delays, the board is confident that it will be able to execute these transactions. 
 
Further updates on the impact of the COVID-19 virus will be provided as appropriate. 

RPM is focused on the health, well-being and safety of both our staff and customers and continue to provide the appropriate sanitation measures and social distancing regimen. 

About RPM: RPM Automotive Group Limited is a leading player in the Australian Automotive Aftermarket comprising a number of businesses involved in: importing, wholesaling and retailing of tyres, mechanical repairs, motorsport apparel and safety equipment, niche manufacturing and a roadside assistance service for the transport industry. RPM owns brands, such as: RPM Racewear, Carline, Genie, Air Anywhere, Formula Off-Road.