Peter Warren Automotive Holdings (PWR) investor relations material

Executive summary

• FY25 revenue reached $2,483 million, a slight increase year-over-year, driven by strong used car, F&I, service, and recent acquisitions despite a decline in new car sales.

• Underlying EBITDA was just over $110 million, with underlying PBT of $22.3 million, reflecting margin pressure and higher costs but a stronger second half.

• Disciplined inventory management and a $4.9 million cost-out program in H2 contributed to improved margins and lower net debt.

• Strategic focus on innovation, customer centricity, organic growth, and disciplined acquisitions underpins long-term growth.

• Net debt reduced to $46.7 million, and a final dividend of 4.0c per share was declared.

Financial highlights

• Used vehicle sales grew 14% to 9,702 units; service and parts revenue rose to $422 million year-over-year.

• Gross margin declined to 16.1% from 16.9% year-over-year, mainly due to lower new car margins, but stabilized in H2.

• Operating expenses increased by $6.1 million, with $12.5 million attributed to acquisitions.

• Operating cash flow was $93.7 million with strong cash conversion at 86.4%; net debt reduced to $46.7 million.

• Total dividend for the year declared at $0.56 per share.

Outlook and guidance

• New car market expected to remain highly competitive with new brands entering and margin pressure persisting.

• Focus remains on growing higher-margin service, parts, finance, insurance, and aftermarket lines, with earnings growth anticipated for FY26.

• Management expects stable new car volumes and margins, with a positive outlook for new product launches and brand portfolio expansion.

• Strategic focus areas include customer-centricity, innovation, brand portfolio development, and capital management.