RPM Automotive Group exceeds expectations as FY20 trading results demonstrate 13.7% year-on-year increase

RPM Automotive Group Ltd’s (ASX:RPM) trading results for FY20 surpassed expectations with a year-on-year increase of 13.7% despite the difficulties experienced as a result of the COVID-19 pandemic. The company’s Tyre and Wheel Division outperformed its budget and surpassed the overall performance of the tyre and wheel industry with truck and bus tyre sales up 62% and off-road types sales up 51%. RPM’s Repairs and Roadside Division achieved mixed results, with an overall fiscal year ales improvement of 8.2%. Although the pandemic had a substantial impact on this division, one of the businesses showed significant growth with a new outlet in the North-Western corridor of Melbourne. Performance & Accessories increase The company’s Performance and Accessories Division has also seen improved sales figures driven in part by strong demand for components in both the repairs and roadside, as well as the performance and accessories segments. While this division only accounts for 11% of RPM’s total sales, it has seen a 24.5% increase in turnover year-on-year. Along with some of the company's retail businesses, the Motorsport Division has been severely affected by COVID-19 and although RPM has seen some positive signs, turnover reduced by 31% year-on-year. “Pleasing” year to date RPM believes that while the year so far has been challenging, the performance under view has been pleasing. The group’s primary strategy remains on course, with growth at the forefront. Investors responded positively to the report with shares almost 12% higher to 19 cents and since the close on June 24 are up from 12 cents.