AP Eagers rehires 165 staff

QUEENSLAND auto giant AP Eagers has been able to rehire 165 employees laid off during the coronavirus shutdown, thanks to the JobKeeper program.

The Brisbane-based car retailer told shareholders at its annual general meeting it remained in a strong financial position as it completed its merger with Perth-based AHG.

AP Eagers chief executive Martin Ward said the sudden escalation of the pandemic had forced the company to cut its fixed monthly cost base by $6 million.

The company announced in April it was laying off 1200 workers.

“The JobKeeper initiative has provided much-need support,” Mr Ward said.

“It has kept us connected with our employees, helping to support a faster recovery and rehire 165 people.”

He said the successful completion of AP Eagers’ merger with AHG had created a leading national automotive group with a foothold in New Zealand.

“The industry is undergoing significant structural change and a national business of scale will be better placed to compete,” Mr Ward said.

The company delivered a permanent annual cost cut of about $78 million as it moved to insulate the business from the impact of coronavirus.

“AP Eagers is now in a very strong financial position with a substantial property portfolio,” he said.

The company received a “first strike” on the adoption of its remuneration report at the shareholder meeting amid investor concern over impairments that forced the company to post a $80.5 million loss last year.

The remuneration report attracted a “no” vote of 30.58 per cent with potential for a full spill of the board at next year’s AGM if it receives a second strike “no” vote of more than 25 per cent. AP Eagers shares climbed 13.3 per cent to $7.99.