AutoHellas Hertz SA
AUTOHELLAS HERTZ: Demand slowdown but stronger cash flow despite reduced borrowing
Consolidated turnover reached €68.4mill from €81.5mill in the respective last year’s period, mainly as the result of the slow-down in sales of used vehicles returning from renting by €8.6mill or 45.5%. Short and long term rentals, which is the company’s main activity showed a decrease of €4.5mill or 7.2%.
Consolidated earnings before tax, depreciation and financial results (EBITDA) reached €31.1mill, while operating cash flow has been increased to €19.6mill allowing the strengthening of cash deposits which in consolidated level reached €91.8mill despite loans being reduced by €14.5mill and dividend payment of another €5.5mill.
Mainly because of the extraordinary loss from investment activity (devaluation of Bank shares by €1.5mill) and the reduction of deferred tax due to change in tax rates in last year’s respective period, the company reported in consolidated losses after tax of €0.8mill . It must be noted that the main volume of short term renting takes place in the second half of the year which is when the company’s result is formed.
As of the 15th of May, Autohellas possess the franchise for short term renting for Romania (Company had license only for Operating leasing up until now). Hence and with the recent addition of Serbia and Montenegro, the company now operates in 5 foreign countries, Bulgaria, Romania, Cyprus, Serbia and Montenegro, following a moderate growth plan with consistency, building a strong and healthy position in these countries.
Current uncertainty and lack of economic stability affect substantially and in a negative way the market of used cars, something that is expected to have a similar influence in the company’s 2012 results. In addition, increased financial cost is expected to influence negatively the results as well.
The combination of strong capital base of €135mill, the leading market position and the highly competitive cost base and cash reserves, guarantee the company’s stamina as well as its ability to support its growth in the Balkan countries.