Eclipx (ASX:ECX) - Chair, Gail Pemberton
Chair, Gail Pemberton
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  • Car leasing company Eclipx (ECX) has spiked on the ASX today after posting an increase in profit and income over the first half of the 2020 financial year
  • Eclipx grew net operating income to just under $106 million over the first half of its financial year, which is 12 per cent higher than the same time last year
  • This underpinned a 79 per cent increase in earnings before interest, tax, depreciation and amortisation, which was $66.5 million over the first half of the 2021 financial year
  • Importantly, Eclipx almost tripled profits over the financial year so far, with $37.8 million in net profit after tax for the six months to the end of March
  • The company said the growth was driven by ongoing positive trends across the used vehicle market in both Australia and New Zealand bringing about strong end-of-lease income
  • New business writings (NBW) grew 11 per cent over the half-year, but global new vehicle supply issues are expected to constrain NBW moving forward
  • Still, with new company Chair Gail Pemberton to take over from retiring Chair Kerry Roxburgh, Eclipx said it is confident in the outlook for its business model
  • Shares in Eclipx are up neat 8.59 per cent this afternoon to trade at $2.15 each

Car leasing company Eclipx (ECX) has spiked on the ASX today after posting an increase in profit and income over the first half of the 2020 financial year.

The company grew net operating income to $105.9 million over the first half of its financial year, which ended on March 31, compared to the $94.4 million in net operating income over the same period last year. This is a 12 per cent increase.

The income boost underpinned a 79 per cent increase in half-yearly earnings before interest, tax, depreciation and amortisation, coming in at $66.5 million over the first half of the 2021 financial year compared to $37.2 million the year before.

Importantly, Eclipx managed to almost triple profits over the 2021 financial year so far, with its $37.8 million in net profit after tax for the six months to the end of March coming in 186 per higher than the $13.2 million over the same time period last year.

Eclipx said the catalyst for the half-yearly growth was its end of lease income, which more than doubled in 2021 compared to the year before.

The company said with ongoing positive trends across the used vehicle market in both Australia and New Zealand, Eclipx’s average unit profitability was $5944 in the first half of 2021 compared to $2468 in the first half of 2020.

Further supporting the company’s growth was an 11 per cent increase in new business writings (NBW).

Eclipx said new vehicle deliveries are experiencing global delays and supply chain disruptions, which bodes well for the used vehicle market. However, this same vehicle supply chain disruption has impacted NBW volumes — meaning NBW is likely to remain constrained for some time.

New company Chair

Eclipx said its strong performance in the midst of the global economic impact of COVID-19 reflect the “resilience and defensive qualities” of its business model.

Looking ahead, the company said the global supply chain disruption for new vehicles is expected to continue for longer than initially expected, but Eclipx will return to “solid asset growth” as the new vehicle supply chain normalises.

This growth will be overseen by new company Chair Gail Pemberton, who is set to take the reins from current Chair Kerry Roxburgh.

Eclipx confirmed today that Kerry has stepped down as Chair and will retire from the company’s board later this year.

“As retiring Chairman, I am very pleased with the outlook for the company, especially given the many challenges we have overcome, including COVID-19,” Kerry said today.

Gail shared similar sentiments, saying she has “great confidence” in the Eclipx platform and the outlook for the business.

Investors seemed impressed with the half-year report, too, with Eclipx shares up a neat 8.59 per cent at 1:39 pm AEST to $2.15 each. The company has a $700 million market cap.

ECX by the numbers
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