SG Fleet beats broker forecasts

By Trevor Hoey. Published at Aug 14, 2018, in Features

Name: SG Fleet Group Limited (ASX:SGF)

Market Capitalisation: $900 million

Opening Share Price: $3.40

SG Fleet Group (ASX:SGF) has reported a fiscal 2018 profit of $67.7 million, up 13.6% on 2017.

This represented earnings per share of 26.4 cents, placing the company on a trailing price-earnings (PE) multiple of 12.9, a discount to the sector average of 17.

Management declared a final dividend of 9.95 cents per share, bringing the total dividend to 18.7 cents per share, up 11.5% on 2017.

The profit beat Bell Potter’s projections with the broker forecasting a net profit of $66 million.

The result was struck on revenue of $316.5 million, up 7.9% on the previous financial year.

Salary packaging and vehicle leasing

SG Fleet is a leading international mobility solutions provider with operations in Australia, New Zealand and the UK.

The company specialises in fleet management and leasing, as well as salary packaging services.

Growth in both profit and revenue was higher than fleet growth as a result of increased penetration of the company’s add-on products and services within its customer base and higher end of lease income.

One of the key features was the strong full year contribution from the UK business acquired in fiscal 2017.

The economic climate in the UK saw some improvement during the year and this was reflected in an uptick in interest in both tool-of-trade, particularly light commercials, and salary packaging services.

Growth in the current financial year is expected to come primarily from ongoing activities, supplemented by further product and services expansion.

Management noted that many of the products already brought to market are only in the early stages of adoption, and the take-up is now accelerating.

The group also highlighted that it had the head room for acquisitions should opportunities arise.

Note that any decision with regards to adding this stock to your portfolio should be taken with caution and professional financial advice sought.

View Our Investment Portfolios

S3 Consortium Pty Ltd (CAR No.433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information only. Any advice is general advice only. Neither your personal objectives, financial situation nor needs have been taken into consideration. Accordingly you should consider how appropriate the advice (if any) is to those objectives, financial situation and needs, before acting on the advice.

Conflict of Interest Notice

S3 Consortium Pty Ltd does and seeks to do business with companies featured in its articles. As a result, investors should be aware that the Firm may have a conflict of interest that could affect the objectivity of this article. Investors should consider this article as only a single factor in making any investment decision. The publishers of this article also wish to disclose that they may hold this stock in their portfolios and that any decision to purchase this stock should be done so after the purchaser has made their own inquires as to the validity of any information in this article.

Publishers Notice

The information contained in this article is current at the finalised date. The information contained in this article is based on sources reasonably considered to be reliable by S3 Consortium Pty Ltd, and available in the public domain. No “insider information” is ever sourced, disclosed or used by S3 Consortium.

Australian ASX Small Cap stocks | Why is Australia’s leading small cap publication

Founded seven years ago, is Australia’s leading and longest standing website for investor and finance news, education and expert opinion.

Published by StocksDigital, Finfeed was created to report daily on the comings and goings of ASX listed stocks in the small cap market.

As the first digital publication dedicated specifically to this space, Finfeed soon became the most trusted publication in the market, quickly garnering over two million page views – a number that continues to rise. provides its readers with informative articles that tackle the latest in market moving #ASX small cap news, plus exclusive content you won’t find anywhere else. It is aimed at those with an interest in investing, market education, company performance, start-ups and much more. is the only media organisation operating under the strength of a Financial Services License and is backed by leading journalists and analysts all with brands of their own.

The website aims to inform, educate and entertain with content that drills down into the heart of financial matters.

Finfeed is a leading source of investor and market information, with everything investors need to know about how to invest written in a way that anyone can understand. 

Over the years, the website has expanded beyond exclusively reporting on small caps, to profile Australia’s leading ASX listed small, mid and large caps as well as some of the country’s most successful CEOs and business leaders to find out what makes them tick.

Every day you will find fresh content covering:

Fast Facts

Over 4,000 articles published

Over 2.3 Million Page Views and counting

Over 10,000 followers on social media

Subscriber list growing by 2% monthly

Thanks for subscribing!