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Eclipx Group cuts FY profit guidance

Sales financing and fleet management firm Eclipx Group has cut its full-year profit guidance, hurt by sluggish auction activity at its online brand GraysOnline.

In an update released after the close of trade on Monday, the company said it now expects to report fiscal year 2018 net profit after tax and amortisation (NPATA) in the range of A$77 million ($56.9 million) to A$80 million.

The new forecast equates to about 13 per cent to 17 per cent growth on the previous year, compared with the previous forecast of about 27 per cent to 30 per cent growth.

"GraysOnline auction activity is being affected both by a 10-year low in bank-initiated insolvencies in Australia and the current buoyant construction sector," the company said in a statement.

Eclipx expects GraysOnline to report a 30 per cent to 40 per cent NPATA increase on its pre-acquisition full-year NPATA of about $8 million.

The company also said accident management services brand Right2Drive's result would miss previous expectations due to tougher competition.

Eclipx shares were down $1.30 or 43 per cent to $1.74 at 1201 AEST - an all-time low.

Austrlaian Associated PressBack to Breaking News

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