Autobarn parent Bapcor has taken a $442 million after-tax impairment hit as its turnaround program continues.
The company reported a 1.8 per cent dip in revenue to $1.924 billion for the year to June, underlying earnings before interest, tax, depreciation and amortisation of $152.5 million and a net profit attributable to shareholders of $10.8 million, down 85 per cent from the previous year.
CEO and MD Chris Wilesmith, who joined the company in January, said the priority since then has been to restore the fundamentals of the business.
“The actions implemented during the second half improved performance across the group.”
Sales momentum grew through the final five months of the year, as networks returned to growth, retail delivered positive like-for-like sales growth, and working capital initiatives began “delivering real value”, he said.
Bapcor termed FY26 as “a reset and turnaround year”, with a new CEO, new chair, renewed board, and a strengthened leadership team. Working capital initiatives delivered $68.5 million of cashflow, and bank debt was cut by $229.8 million to $135 million after an equity-raising round.
A statutory loss of $431.6 million included the $442.4 million impairment, which was primarily non-cash in nature.
Wilesmith said the restructuring during the June half-year delivered “measurable improvement across the group”, including improved price competitiveness, increased stock availability, stronger customer and trade partner engagement, enhanced operational execution and tighter working capital discipline.
“Despite a more challenging external environment following the equity raising, including geopolitical disruption associated with the Middle East conflict, higher fuel prices, softer economic conditions and higher interest rates, the group improved trading momentum.”
Wilesmith said Bapcor would now focus on building that momentum by improving profitability and sustainable earnings growth. “With a strengthened leadership team and clear operational priorities, we are well positioned to deliver long-term value for shareholders.”
The focus includes reviewing the company’s brand portfolio to simplify group operations and potentially divest smaller, non-core assets.
Alongside Autobarn, Bapcor’s franchised brands include Midas, ABS (Auto Brake Service), Opposite Lock and Autopro.
The company said trading during the first six weeks of the new fiscal year is “slightly ahead” of the prior comparative period, with trade parts and networks delivering sales growth. The retail division and the New Zealand business remained challenging.
“Modest revenue growth is expected in FY27, with the Middle East conflict-related pressures moderating the benefits of the turnaround initiatives. Benefits will be largely reinvested in technology and people,” the results filing concluded.
This article was first published on Inside Retail.
