Motor Trade Finance’s underlying annual earnings dropped 7.6 per cent, meanwhile both of its sales and market share increased.
Overall net profit rose to $7.5 million in the year ended September 30, compared to the previous year where MTF landed on $7.2 million.
However after removing tax the underlying profit actually fell to $7.3 million compared to $7.9 million in 2016.
After introducing various initiatives, MTF has had “a very buoyant year” where sales have jumped 36 per cent to $567.4 million.
Last November MTF introduced the non-recourse lending partnership with Turners Automotive Group which allows franchisees and dealers to sell vehicles to people with higher credit risks.
The company said its market share rose to 13.6 percent in the year from 11.6 percent in the prior period, and non-recourse lending contributed $58.6 million in sales in the year.
Usually non-recourse receivables are not included on the company’s balance sheet as they are funded by Turners; however the company included as they are generated through its business channel.
The advent of car-sharing, autonomous vehicles and new technologies means the vehicle industry is in for a big disruption. In order “to reflect and encourage broader asset lending,” MTF will drop references to vehicles in its branding.
“The worldwide speculation surrounding disruption in the areas where we operate, being the automotive and financial markets has intensified over the past year,” the company said.
“What we do know is that our markets are set for change, and while the extent and pace of this change remains unclear, we know we must position ourselves to adapt early and not wait to react.”
The board declared a 7.37 cent dividend, payable on Nov. 30. That brings the annual payout to 13.37 cents per share, down from 13.96 cents per share in 2016.