Fleet Partners Group (ASX:FPR) reported strong growth for the fiscal year ending September 30, 2024.

The company is a prominent fleet management and vehicle leasing company with operations in Australia and New Zealand, serving both corporate and small fleet customers in the region, and in its latest annual report highlights some milestones.

FleetPartners achieved revenue of $761.6 million, up 12.5% ​​from $676.8 million in FY23. New Business Writings (NBW) grew a record 21%, driven by strong demand for electric vehicles (EVs) and successful customer acquisition efforts. Assets under management or financing (AUMOF) increased by 11%, reflecting the sustained growth in the company’s business size.

Despite these gains, net profit after tax and amortization (NPATA) decreased by 0.7% to $87.7 million, with statutory profit falling to $77.9 million from $81 million in FY23. The decrease in profitability was due to an increase in operating expenses and the allowance for loan losses, which increased by $2.9 million as the refreshed lease portfolio expanded rapidly.

Key metrics also revealed areas of pressure. Compensation costs increased and total expenses increased by $4.7 million, while interest expense increased 35% to $16.7 million, reflecting higher debt financing costs in the current interest rate environment.

Fleet Partners has pursued strategic initiatives under its “Strategic Pathways” and “Acceleration” programs. These initiatives include the integration of brand and technology systems, which is expected to save $25 million annually by FY25 and take advantage of the growing EV market. Thanks in part to government incentives such as electric vehicle discounts, 53% of new lease renewals in the same year were electric vehicles. The company also maintains carbon neutral certification in Australia and New Zealand, demonstrating its commitment to sustainability.

CEO Damien Berel said: “Our record operating results reflect the strength of our strategy and our commitment to delivering value to our customers and shareholders. At the same time, we continue to optimize costs and navigate the evolving market environment. I will continue to focus on this.”