Super Cheap Auto Group has announced an 18.4 per cent increase in net profit after tax to $38.1 million for 53 weeks to 3 July 2010.
Peter Birtles, Super Cheap Auto Group’s managing director, says the financial results for the year were testament to its strong business model.
“During a tough period for Australasian retail businesses, Super Cheap Auto Group has delivered another record sales and profit result. This reflects our strong focus on delivering the right offer to our target customers across the Group,” Birtles says.
More specifically, the sale of the company’s Auto and Cycle Retailing division consisting of the Supercheap Auto and Goldcross Cycles businesses increased by 9.9 per cent to $685.8 million.
Meanwhile, in May, Super Cheap Auto Group expanded into leisure retailing through the acquisition of Ray’s Outdoors and BCF Boating Camping Fishing. Through this, divisional sales rose 23.2 per cent to $253.2 million. Key drivers of this result included localised ranging, targeted marketing, new product introductions, range extensions and own brand development.
Birtles says Super Cheap Auto Group had a track record of success during times of challenging market conditions.
“While we expect the general outlook for retail trading to remain uncertain in the lead up to Christmas, we also expect that increasing confidence will start to drive retail spending in the second half of the coming year,” he says.
The company anticipates to open 10 to 15 new stores in the Auto and Cycle Retailing division and around 20 stores in the Leisure Retailing division in the coming 12 months.