Download - AHG Limited

2012 Annual Report
For the year ended June 2012
operations is now substantially complete.
This has been an outstanding success,
setting a base for the Group to drive further
synergy benefits and capitalise on future
growth in revenue and profitability.
Focus on driving
shareholder returns
Maximisation of returns from our existing
operations, together with the extraction of
synergies from our acquisitions, drive AHG’s
focus on generating superior operating
performance in order to create value
for shareholders.
AHG will continue to seek acquisitions that
will be accretive in the short term within
a disciplined financial and operational
framework. An example of this came in early
July 2012 with the announcement that Rand
Transport had reached agreement with Toll
Holdings to purchase the Toll Refrigerated
business for $6.5 million. This acquisition
is expected to deliver approximately
$75 million in revenue and has been
immediately EPS accretive for AHG.
The Managing Director Bronte Howson will
expand further on our business strategy in
his report but I want to highlight the fact
that the Group has also made substantial
progress during the year in positioning itself
to meet the changing needs and purchasing
behaviour of our customers, especially
in the retail car market. This is illustrated
by a strong focus on the growth of our
online marketing and trading capacity to
complement our retail outlets.
Outlook
While there has been much speculation
about the future direction of financial
markets and the national economy, the
Board believes the Group is well placed
to take advantage of those sectors of the
economy that will drive growth and to
pursue further acquisition opportunities.
Looking ahead, our Information Systems
and Online Strategy will continue to be a
key initiative for AHG in FY2013, alongside
driving improvement in underperforming
businesses and continuing to build the core
skills of our people.
In summary, we continue to have confidence
in our strategy and to believe that AHG is a
high-quality business with significant organic
and acquisition-led growth opportunities
that will provide substantial benefits to
shareholders in the years ahead.
Strengthening the Board
During the past year we were delighted
to welcome two new directors, further
strengthening the knowledge and experience
of your Board. Tracey Horton and Robert
McEniry joined the Board in May 2012.
After graduating with the highest distinction
as an Arjay Miller Scholar from the MBA
program at Stanford University, Ms
Horton pursued an international career
as a consultant at Bain & Co. specialising
in strategy development and change
management. In 2005, Ms Horton was
appointed Winthrop Professor and Dean
of the UWA Business School where
she drove its growth and international
reputation through the development
and implementation of a comprehensive
improvement strategy including the
integration of business-related schools
and completing a $25 million fundraising
campaign. Ms Horton has worked as an
economist at the Reserve Bank of Australia
and she is currently a director of Skilled
Group Limited, Navitas Limited and
Cullen Wines.
Mr McEniry brings to the Board of AHG more
than 25 years experience in the automotive
and auto supplier industries in Australia and
overseas, including time as Chief Executive
of South Pacific Tyres. Mr McEniry spent
five years as Chair, President and CEO of
Mitsubishi Australia Limited. Prior to his time
with Mitsubishi, Mr McEniry held a number
of senior executive roles including Director
of Marketing for General Motors Holden and
Vice President – Commercial and Marketing
for Saab Automobile AB of Sweden.
Mr McEniry is currently a director of Multiple
Sclerosis Society Ltd, Australian Home Care
Services Pty Ltd and Stillwell Motor Group.
He is also chair of EV Engineering Limited,
which is a collaborative venture between
leading Australian automotive suppliers
aimed at developing a proof of concept
Australian electric vehicle.
5