SYDNEY, AUSTRALIA: FleetPartners Group Limited (ASX:FPR), a leading provider of fleet management and leasing solutions, has announced its first quarter results for FY24 and reiterated its full year guidance.

The Group’s CEO and MD, Damien Berrell, said the company has a clear vision for creating sustainable shareholder value, based on four key drivers: revenue growth, cost reduction, share buy-back and M&A.

The Group’s EPS grew by an impressive 45% per annum over the last five years, driven by strong NOI growth, cost discipline and share buy-back.

The Group also benefited from elevated EOL income due to COVID-19 supply delays, but expects this to normalise in the coming years. Excluding EOL income, the Group’s EPS still grew by 29% per annum over the same period.

The Group’s revenue growth strategy, dubbed Strategic Pathways, focuses on three under-penetrated target markets: Corporate, Small Fleets and Novated.

The Group has won several new and existing customers in these segments, and has established itself as a leader in the electric vehicle transition, winning a significant EV fleet in New Zealand in FY23.

The Group’s cost reduction program, called Accelerate, aims to achieve permanent operating expense savings through process improvement and automation. The Group expects operating expense to increase by 4 to 5% in FY24, similar to FY23.

The Group’s share buy-back program has been ongoing since FY19, and has reduced the number of shares outstanding by 18%. The Group has $100 million remaining in its current buy-back authorization.

The Group’s M&A strategy is the fourth driver of EPS growth, and the Group is actively looking for potential acquisitions that are complementary to its core business and offer synergies and scale.

Berrell said the Group is very happy with its performance in FY23 and its strategic direction. He said the Group has a predictable, defensive earnings profile with good tailwinds heading into FY24.

He also praised the leadership team and the staff for their passion and capability. He said there is a lot to be excited about in terms of the strength and prospects for FleetPartners now and in the future.