Sales at full throttle as dividends return for Motorcycle Holdings
Motorcycle Holdings has forecast underlying earnings of up to $45 million for the June 30 year as the COVID-19 related boom in sales continued to benefit the company.
Motorcycle Holdings said there was no signs of sales slowing down
The company said there were no signs of demand slowing down.
Shareholders will be the big beneficiaries with a return to a dividend payout of between 50 and 70 per cent of net profits and a notable winner is chief executive David Ahmet who has about 18 per cent of the company.
The company has maintained its policy of keeping the $5.8 million it received in JobKeeper payments and has said those funds had been excluded from the pool used for dividends.
The company said the funds also mitigated the losses incurred by the closure of its stores during the lockdowns.
The company benefitted last year when the lockdowns and travel restrictions forced people into new hobbies and modes of transport.
The forecast result compares with the underlying earnings before interest, tax and depreciation last year of $27.6 million.
“The industry’s new motorcycle unit sales were up 51 per cent for the first three months of calendar 2021, compared to the comparative period last year,” the company said.
“Demand for new and used motorcycles remains consistent and strong and is showing no signs of slowing down.”