RPM Automotive Group focused on acquisitional and organic growth for 2021
- RPM Automotive Group’s new appointment has strong track record in acquisition growth
- RPM Automotive Group delivers another record quarter with revenue up 48.5%
- RPM Automotive makes further acquisition as it expects growth to accelerate
Quick facts: RPM Automotive Group Ltd
Price: 0.305 AUD
Market Cap: $42.65 m
About the company
RPM Automotive Group Ltd (ASX:RPM) offers a nationwide footprint focusing on wholesale distribution and retail of tyres, auto parts and accessories-with best-in-class, well-known and established brands.
The company has a plan to address multiple opportunities in the Australian market to aggressively grow its business on multiple fronts via organic and inorganic growth.
Since listing on the ASX in August 2019, RPM has acquired CITIC Autoparts, Gully Mobile Tyers, Metcher Tyre Services, Competition Tyres Hallam, and Traralgon Tyre Service.
How it is doing
This move comes just a day after RPM acquired Far North Queensland (FNQ) business Direct Wholesale Tyres (DWT), to add scale to its growing footprint in the region.
The appointment of Banks provides RPM with extensive experience in the financial services, health and employment sectors and he will be pivotal in the company’s growth plans.
“We are delighted to welcome Damian to RPM Automotive’s Board of Directors," RPM chairman Grant Carman said.
DWT generates $6.5 million in revenue and is forecast to provide an annual EBITDA contribution of $450,000 – making it a key part of RPM’s growth strategy, focused on expanding the business through accretive acquisitions.
RPM Automotive Group Ltd (ASX:RPM) has increased its revenue by 30% to $45.1 million for FY2021 compared to the $34.6 million on the previous year, demonstrating growth across the Australian automotive aftermarket goods and services space.
In its latest annual report, the company attributed the year-on-year growth to the surge in demand for commercial and wholesale passenger tyres.
Insight: RPM Automotive Group delivers another record quarter with revenue up 48.5%
The revenue for the quarter was $15.24 million compared to the previous corresponding quarter’s $10.26 million while gross profit was $3.82 million up 33% from $2.87 million in the June quarter of 2020.
What management says
RPM Automotive Group Ltd (ASX:RPM)'s Clive Finkelstein speaks to Proactive following the news it's to acquire Direct Wholesale Tyres in Far North Queensland. He says it's a strategically aligned acquisition that provides increased vertical integration capability and cost savings. Finkelstein also talks through RPM's FY21 results - a period in which the business generated its strongest results in the company’s history.
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