Wednesday, 3 February 2010

Autologic sees 2009 profit above expectations, but cautious as UK scrappage scheme winds down

Automotive support service group Autologic Holdings (AIM: ALG) said it expects pretax profit for the 12 months to 31 December 2009 to be materially better than current market expectations, as the marketplace has continued to benefit from the UK government’s vehicle scrappage. As a result approximately 280,000 additional new vehicles were registered during the year.

The Northampton headquartered company’s primary clients are car manufacturers, importers, rental operations and dealers. It provides logistics and vehicle transport services, post-transport maintenance services and other operations services.

A large proportion of the additional registrations occurred in the second half, therefore the level of activity was stronger than anticipated at the time of its half-yearly report, Autologic said. The government has announced that the scheme will finish at the end of February 2010, which may subsequently impact on 2010 new car registration.

Looking forward through the coming year, Autologic remains cautious despite its better-than-expected performance in 2009. As it has previously stated the company believes that the UK new vehicle market will soften once the government stimulus is removed. According to Autologic the extent to which it is affected will depend on whether the scrappage scheme actually created a new market or merely brought forward existing demand from the 2010 calendar year.

http://www.proactiveinvestors.co.uk/companies/news/12870/autologic-sees-2009-profit-above-expectations-but-cautious-as-uk-scrappage-scheme-winds-down--12870.html

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