BAP +5.88%: the auto parts business was out with a 1H trading update today, investors initially took the news as a negative however shares battled back strongly, rallying 10% from lows. They expect to report Revenue growth of 2%, EBITDA to fall 1-3% and Profit down 13-15% at the first half result on February 23 with strong Trade & Wholesale performance offsetting weaker Retail. Bapcor already poured cold water on performance for the first 6 months of the year at the AGM in October so today’s update was largely as expected. Cost-saving initiatives are expected to improve profit by $2m in the 2H, and their transformation program could add a further $10m. The papers have also reported some potential interest in the business from private equity, likely another reason for the share price reaction.
MM remains long and bullish BAP
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