McMillan Shakespeare (MMS) H1 2025 earnings summary

Executive summary

• Revenue increased 7.9% year-over-year to $276.8m, with all segments contributing to growth and strategic investments supporting digital transformation and customer experience.

• Net profit after tax attributable to members rose 20.3% to $45.2m for the half year ended 31 Dec 2024.

• Interim fully franked dividend of 71c per share declared, representing a 100% payout of Normalised UNPATA.

• Operating expenses rose due to $11.9m in investments and $4.4m in non-recurring costs, supporting customer growth and efficiency initiatives.

• Simply Stronger transformation program is delivering productivity and digital experience improvements, with benefits expected to increase in the second half.

Financial highlights

• Normalised UNPATA was $49.6m, down 6.7% year-over-year, but up $13.7m compared to 1H23.

• EBITDA was $80.8m, down 7.1% year-over-year; EBITDA margin was 30.2% (31.9% excluding non-recurring costs).

• Statutory NPAT from continuing operations was $45.2m, up 3.4% year-over-year.

• Onboard Finance receivables reached $411.4m, up 97.4% year-over-year, with a $300m private placement completed to enhance funding diversity.

• UNPATA cash conversion was 88%; capital expenditure increased to $14.5m for transformation initiatives.

Outlook and guidance

• 2HFY25 Normalised UNPATA is expected to be higher than 1HFY25, driven by novated sales growth, new client wins, Simply Stronger efficiencies, and reduced non-recurring costs.

• Onboard Finance normalisation adjustment of approximately $8m expected for FY25, the final year of normalised reporting.

• FBT exemption for plug-in hybrids ends April 2025; battery EV exemption continues, with review by mid-2027.