SYDNEY: FleetPartners Group Limited (ASX: FPR) reported mixed results for the first half of 2025, reflecting both the successes and transitional challenges of its recently completed Accelerate transformation program. While net operating income saw modest gains, new business writings experienced a temporary downturn as the company adjusted to its new operating system.
Strategic Transformation Signals Growth Potential
FleetPartners successfully concluded its Accelerate program in February, a move aimed at streamlining operations and enhancing financial performance. The transition to a unified system is expected to yield $6 million in annual cost savings while strengthening the company’s ability to execute its growth agenda.
“Operationally, we are better placed than we have ever been to execute our strategic agenda and pursue growth,” said CEO and Managing Director Damien Berrell. “None of the short-term operational disruptions are seen as structural, and we expect normalization over the remainder of FY25.”
Financial Highlights and Market Trends
For the half-year ending March 31, assets under management or financed (AUMOF) increased by 6% to $2.3 billion, driven by strong business activity in the previous period. However, new business writings fell by 17%, in part due to the unwind of an elevated order pipeline seen in prior periods. Excluding this factor, new business activity declined by 11%, largely attributed to disruptions from the transition to the new system.
Despite the challenges, FleetPartners maintained its cash-generating ability, posting a net profit after tax excluding amortization (NPATA) of $38.9 million, down 7% compared to the previous year. Excluding end-of-lease income, which declined 18%, NPATA increased by 10%. The company also announced a share buy-back program of up to $25.3 million for the second half.
FleetPartners’ credit portfolio remains strong, though temporary increases in arrears and provisions were reported following the system overhaul. The company expects these figures to stabilize over the next quarter.
New Leadership and Strategic Vision
Looking ahead, FleetPartners is positioning itself for growth through both organic expansion and strategic investments. The recent appointment of James Allaway as Chief Strategy Officer signals the company’s commitment to unlocking new opportunities. Allaway, returning from UBS, previously played a key role in FleetPartners’ 2019-2022 restructuring.
“I have always believed in FleetPartners’ resilience and ability to succeed in all business cycles,” said Allaway. “I am excited by the opportunity ahead to deliver greater returns for shareholders.”
Despite ongoing global uncertainties, FleetPartners maintains confidence in its future trajectory, buoyed by stable customer demand, robust tender activity, and improved operational agility following its transformation.