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McMillan Shakespeare's vehicle finance acquisitions make a contribution

25 August 2016 3:39PM

Retail finance activities made a significant contribution to the earnings of the remuneration services and fleet leasing specialist McMillan Shakespeare, as the company started to enjoy a strong revenue flow from recent acquisitions in the finance market.Last year McMillan Shakespeare bought vehicle finance companies United Financial Services and Presidian, aiming to be a "player of scale" in that market.The company's retail financial services division contributed revenue of A$110 million in the year to June - up from $23 million in the previous year.The division's profit rose from $3 million to $11.8 million over the same period. The proportion of profit coming from retail lending increased from 4.4 per cent in 2014/15 to 14.3 per cent in the year to June.The business distributes through 5200 dealers and more than 200 brokers. In addition to vehicle finance, it sells warranties and insurance.The company said in its results presentation that it would consider acquisitions to broaden its finance capability beyond vehicles.

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