Bapcor shares have slumped almost 10 per cent after the automotive parts and equipment services provider said full-year profit would be at the lower end of its previous guidance.
Bapcor, which was known as Burson Group until mid-2016, on Wednesday reported a 4.1 per cent increase in first-half profit to $45.5 million and raised its fully franked interim dividend half a cent to 7.5 cents.
But its forecast of a nine per cent increase in full-year proforma net profit was at the lower end of its previous guidance, which chief executive Darryl Abotomey said reflected market conditions.
‘Bapcor has delivered its biggest ever first-half result in revenue, earnings, and earnings per share despite experiencing challenging market conditions that have resulted in the rate of growth slowing compared to previous reporting periods,’ Mr Abotomey said.
Good profit growth had been achieved across trade and specialist wholesale businesses in both Australia and New Zealand, where the auto parts company took over Hellaby Holdings in 2017.
Sales revenue for the six months to December 31 was up 3.2 per cent to $636 million.
At 1127 AEDT, Bapcor shares were down 60.5 cents, or 9.4 per cent, at $5.815.
BAPCORP SHARES DOWN BUT PROFIT UP
* First-half net profit up 4.1 pct to $45.5m
* Revenue up 3.2 pct $636m
* Fully franked interim dividend up 0.5 cents to 7.5 cents