I would now like to hand the conference over to Mr. Nick Pagent, CEO. Please go ahead. Thank you. Thank you, and good morning, everybody, and my apologies for any inconvenience caused by us moving the start time for this to 9:30 AM from our original note of 10:00 A.M. Welcome to the investor presentation for the financial results for Autosports Group for the first half of the 2021 financial year. My name is Nick Pagent, and I'm the CEO of Autosports Group. Joining me today is Aaron Murray, the CFO of Autosports Group. This morning, I'll start with a short presentation on the group's financial and strategic performance of the first half of the 2021 financial year. Following the presentation, I'll open up the line to any questions you may have. For any of you following the slide pack, as much as I can, I will note the slides that I'm moving through, and that is the slide pack which is lodged at the ASX this morning. If we start with Slide four, it's pleasing, firstly, to report to investors that following a difficult and volatile period, the new vehicle market has returned to growth. The months of November, December, and January have all seen the new vehicle market grow at a rate of over 10% per month. November at 13.5%, December at 12.7%, and January at 11.1% growth. It's also pleasing to note that despite the significant disruptions over the last 12 months, as we've been grappling with the challenges posed by the COVID-19 pandemic, all of Autosports' businesses are now fully open and running at full capacity. These factors have provided some of the framework for what is an improved result for Autosports Group in the first half of the 2020 financial year. During the period, statutory revenue was up by 7.8% to AUD 903 million. The statutory net profit after tax was up 132% for the period at AUD 16 million. The normalized net profit before tax was up 163% to AUD 29 million. The normalized EBITDA was up 77.8% to AUD 38 million. The business continues to deliver strong cash flow production during the period. Cash flow production was AUD 27.9 million, normalized, of course, for the impact of AASB 16. This strong cash flow has allowed Autosports to continue to grow via acquisition, and during the period, we agreed to purchase the Jaguar Land Rover business in Brighton in Victoria. This business was settled last week and continues Autosports growth within the luxury and prestige segments of the automotive market. We are pleased to announce that the company will be paying an interim dividend to shareholders of AUD 0.02 per share. This dividend has been calculated on a cash basis for the period and factors in the company's desire to maintain an elevated cash balance through what is still an uncertain period. It is the company's intention to revert to its normal dividend policy as the external environment continues to reduce in uncertainty. If we move to slide number five to look at some of the statutory result highlights. The statutory revenue grew during the period by AUD 65.1 million to AUD 903 million. This result was achieved despite a revenue contraction of AUD 49 million within our Victorian division. Gross profits grew by AUD 12.1 million as the group restored operating margins, particularly in the new and used vehicle sections of our business. Statutory operating expenses were down by AUD 6.7 billion for the period, inclusive of the acquisition costs relating to the last three acquisitions that we had of AUD 300,000. Costs relating to the closure of Volvo stores in Mount Gravatt and Brighton of AUD 400,000. Redundancy costs during the period of AUD 300,000. JobKeeper wage support during the period of AUD 10.6 million. Statutory EBITDA was up AUD 18.8 million on the prior corresponding period, or 50.4%, impacted by a AUD 19 million adjustment with the application of AASB 16. Statutory profit before tax of AUD 23.5 million was impacted by AUD 4.5 million in AASB 16 adjustments and benefited from lower interest costs as inventory levels dropped during the period. Strong cash generation and tight capital management saw the business cash balance rise AUD 22.8 million to AUD 61 million. As I mentioned earlier, this has allowed us the scope to return the AUD 0.02 interim dividend to shareholders whilst retaining an enhanced liquidity position to combat any uncertainty, but also to position the group to take advantage of any growth opportunities. If we move to slide six to have a look at the normalized results. Normalized revenue was up 8.1%, driven almost entirely by growth in new vehicle revenue of 22.3% versus the prior corresponding period. This growth was reflective of increased demand, particularly in the December quarter, where the market delivered its double-digit growth. Importantly, the new vehicle revenue growth continues to be limited more by supply constraints than demand. This tightness in supply has supported margins, improved our order banks, and reduced our operating costs. It is clear that this tight inventory position will continue through the balance of the 2021 financial year. On the flip side of this, the first half of the 2021 financial year was heavily impacted by the Level 4 lockdown in Victoria. Victorian revenue was down 30% versus the prior corresponding period. Our back-end revenue streams of service, parts and collision repair were particularly affected during the lockdown. Put simply, these divisions could not open at full capacity. As a result, the total service revenue was down 7.1% for the group, and parts revenue was down 22% for the group. Driven, of course, by a fall of 46% in Victoria across those two divisions. This decline in back-end revenues, particularly in Victoria, was not a demand-led decline. It was a lockdown-led decline. We've been pleased to note a strong rebound in the back-end revenue streams over the months of November, December and January. On an operational expenses basis, growing revenues and tight expense management has unlocked operating leverage for the business. Our OpEx ratio dropped from 14% in the first half of 2020 to 12.4% in the first half of 2021 financial year. Of course, the September quarter saw lower revenues supported by JobKeeper wage support during lockdown. However, the revenue growth post-lockdown has seen these improved OpEx ratios remain even with increased raw expenses. As we move into the second half of 2021 financial year, we can report January and now February are trading in line with our expectations, with strong new and used car order banks, and improved back-end performance. The acquisition of the Jaguar Land Rover business in Brighton has been completed, and this will contribute to the second half earnings. Additionally, the acquisition of underlying real estate in Brighton takes the group's real estate holdings in key sites to AUD 55 million. This growth in real estate holdings will assist in underpinning the group's balance sheet with strong tangible assets, but is being done on a cash neutral basis to maintain capital for growth. I'd now like to ask Aaron to go through the detail of the first half 2021 financial trends, margins, expense management measures, cash flow and balance sheet. Aaron? Thanks, Nick. Good morning to everybody on the call. If we move to slide eight, normalized revenue bridge. ASG's first half 2021 revenue has increased AUD 69 million on PCP. Revenue growth of AUD 83 million has come from prior year acquisitions. Like-for-like revenue growth, excluding our Melbourne business, has increased AUD 35 million on PCP. Our Melbourne businesses had a decline of AUD 49 million on PCP as a result of the stage four lockdowns that ran from August through to October. If you can move to slide nine, financial trends. In what was a strong growth period in the new vehicle market over the FY 2015 to FY 2018 period, ASG, through a mix of organic and acquired revenue, has shown consistent revenue growth. Despite a falling new vehicle market through FY 2018 to FY 2020, and continued declines in the first half of 2021, ASG has maintained its revenue through strategic acquisitions and like-for-like growth, leaving ASG's current portfolio well-positioned to take advantage of any future market growth. Historical EBITDA through FY 2015 to FY 2018 has also experienced strong historical growth in what has been a buoyant new car market. Over the FY 2018 to FY 2020 period, ASG's EBITDA has been impacted by a combination of a number of one-off effects such as WLTP quarantine, COVID-19, and the stink bugs. Improved GP margins and reductions in OpEx have driven EBITDA in the first half of 2021. Slide 10, margin overview. ASG's first half 2021 gross margin of 16.7% has seen significant improvement driven by improved new and used vehicle margins as a result of tighter supply lines and higher demand. GP margins for the first half have also been impacted negatively due to forced COVID-19 lockdowns, limiting the revenue flowing through the higher margin departments of service and parts. ASG's EBITDA and PBT margins have improved significantly to 4.2% and 3.2% respectively. The margin upswing is a result of improved GP margin and an AUD 5.8 million reduction in like-for-like OpEx. The business expense base has been reset and will continue to drive operating leverage with returned revenue volumes. You move to slide 11, expense management. Through COVID-19, ASG targeted OpEx reductions resulting in like-for-like OpEx reduction of AUD 5.8 million on PCP. AUD 3.3 million of the reduction came from employee costs, with AUD 3 million from other fixed expense areas and an increase of AUD 800,000 in occupancy costs. Additional OpEx of AUD 12 million from prior year acquisitions will also reduce as further synergies are driven through the acquired businesses. ASG plans further fixed cost out in the second half of the year in areas of leasehold costs, employee costs, and other semi-fixed expense reductions. Slide 12, cash flows. ASG had strong normalized operating cash of AUD 27.9 million and a closing cash balance of AUD 61.6 million at December 2020, which has been driven by strong operating profit, first half ATO deferrals of AUD 13 million, bringing the total balance outstanding to AUD 45 million at December 2020. OEM financier support with capital repayment holiday of AUD 828,000. No final dividends for FY 2020 due to COVID-19 uncertainty and a decision to hold cash and strengthen liquidity. The company increased borrowings by AUD 7.4 million, which is predominantly insurance premium funding, which has been offset by AUD 10.2 million of repayments in borrowings. Half one 2021 saw AUD 2.2 million spent on PP&E in pre-committed panel shop and workshop expansions. ASG expects cash impacts through the second half of the year of AUD 4.4 million net of borrowings for the settlement of the Brighton JLR business and underlying property. AUD 4 million for 2021 interim dividend and repayment of AUD 8.8 million in ATO debt. Slides 13 and 14, liquidity and balance sheet. ASG's liquidity has increased by AUD 120.8 million to AUD 350.1 million since June 2020, strengthened by an increase in cash available of AUD 22.8 million. Liquidity improvements have also been supported by significant stock reductions, resulting in an increased unused bailment of AUD 99 million. AUD 12 million of bailment facility has been converted to capital finance facilities to cover the Brighton JLR property acquisition and ASG now has a total of AUD 335 million in undrawn facilities. ASG's net debt of AUD 26.2 million is down from AUD 49.4 million at June 2020 and AUD 75.2 million at December 2019. ASG's total corporate debt of AUD 87.8 million includes AUD 27.5 million of borrowings on property with a carrying value of AUD 32 million. ASG has improved its balance sheet position to ensure it is future-ready, whether it be defense of future COVID interruptions or to take advantage of consolidation opportunities. I'll hand back to Nick now to take us through our strategic overview. Great. Thanks, Aaron. I'm starting on slide 16. What I'd like to do is just take a couple of minutes to update you on our strategic and operational direction. Firstly, since our inception in 2006, Autosports Group has followed a simple but focused strategy. That strategy is to grow within the prestige and luxury segments of the market and to focus on the East Coast of Australia. This slide attempts to show why. Since 2006, the luxury market has outperformed the total market. During that time, the luxury market has grown at a compound annual growth rate of 4.5%, while the total market has fallen by 0.3% on a compound growth rate. Of course, that's impacted by the decline in market in 2020. The growth rate of luxury has far exceeded the total market. From 2014, when we pro forma numbers back for our 2016 prospectus, which is why we've picked 2014, Autosports Group's new vehicle compound annual growth rate has been 19.4%. We've delivered this growth by being in the right segment and being able to grow both organically and by acquisition because of being in that segment. In the first half of the 2021 financial year, Autosports' performance versus the market remains competitive. In the first half of the 2021 financial year, the total new car market fell by 6.7%. The luxury market fell by 6.1%. Autosports Group's new car revenue, as we've seen, grew by 22.9%, and on a like-for-like basis, new car revenue grew by 12%. On the geographic measure, the East Coast continues to be the largest market for new and used vehicles. Interestingly, in the 2021 financial year first half. The contribution of our Victorian division to the group's total revenue dropped from 22% to 14% as it battled one-off factors. Some of those one-off factors are explored in slide number 17. As we've noted, Autosports Group is well-positioned for growth. We've got diverse revenue streams, we've got an improved OpEx and a strengthened balance sheet. All these things help. We've got support of OEM financiers, that helps as well. In the first half of the 2021 financial year, we did, however, see some external environment factors which impacted on the business. They were particularly, the impact of the level four lockdown in Victoria. This particularly upset the revenue balance of the business on a temporary basis. Since listing, we've been growing our important back-end revenue streams to drive an even gross profit split between the front end, which is the new and used vehicle sale, finance, and accessories part of our business, and the back end, which is the service parts and collision repair part of our business. In 2019 financial year and the 2020 financial year, we reached a mix of 52% of our gross coming from the front end and 48% coming in the back end, which in our mind is an almost ideal gross profit generation split. In the first half of 2021 financial year, this dropped back to 62% in the front end, which was powered on by strong growth in new vehicles, and 38% in the back end, impacted by our inability to open in Victoria for an extended period of the half. The back-end impact for the business was clear, and it is temporary. There was a 15% reduction in back-end revenue for the group that was stable in New South Wales and Queensland, which grew at 1.2% during the period, with only collision repair volumes impacted, but it was 46% down in Victoria. This temporary imbalance in revenue streams is an H2 2021 financial year focus area for the group, and we're pleased with our progress over the months of January and month to date in February. Subject to conditions, we expect these back-end headwinds to ease over the course of the next six months. Slide 18 provides some additional data on that H1 2021 headwinds. Used cars were strong in margin retention, strong in gross profit generation, strong in demand, but supply was constrained, and as a result, our revenue declined in this area by 7%. Service and parts were a combined 15% down, as I've said, versus a 2015 to 2020 compound annual growth rate in this area of 20%. As I've said, we're already seeing this headwind abate. Collision repair was down in the first half of the year for the same reasons. In addition to this, vehicles being off the road during the first half of the year also impacted this area, as did some parts supply shortages from our OEMs. We're also seeing a rapid return in collision repair revenues, all of which has Autosports looking at growth opportunities similar to our recent acquisition of Jaguar Land Rover in Brighton. If we move to slide 19, we recap our growth record since listing and our opportunity areas. Since listing, Autosports Group has completed eight acquisitions. These have incorporated the luxury brands of BMW, Mercedes-Benz, MINI, Land Rover, Jaguar, Aston Martin, Rolls-Royce, Bentley, and McLaren. We've also opened four greenfield sites covering the brands of Volvo, MINI, Maserati, and Bentley. In 2021, we'll start construction of an additional greenfield site in Ringwood for BMW. This site will be operational late in 2022 calendar year. We continue to see the franchise automotive space as a highly fragmented market with further opportunity for us to grow. We still only account for 2% of the total market, and we believe conditions still exist for well-priced and complementary acquisitions. With lower debt, higher liquidity, and support of financiers, we believe we're well positioned for growth. Before I open up for questions, I'd just like to quickly recap on the 2021 financial year first half results. Revenue, EBITDA, and net profit after tax were optimized. Strong operating cash flow came through the business normalized for AUD 27.9 million. Operating expenses dropped off the back of a like for like reduction of AUD 5.8 million in expenses. November and December trading recovered strongly on the reopening in Victoria. Our luxury and prestige East Coast strategy remains focused and relevant as the luxury market performs well. Our on-strategy acquisition of JLR Brighton has settled. As I've said earlier, we're well-positioned for growth. Through the next six months, we're going to focus on maintaining these strong new vehicle order banks and the new margin levels that we've achieved in the first half of the year. We'll be helped in that with some new vehicle supply constraints over the period. We're looking to maintain strong cash preservation and liquidity disciplines from the first half of the 2021 financial year, and we're going to concentrate on the rebound in service and parts in Victoria, particularly, as the market remains open there. We're going to develop further synergies, as Aaron touched on earlier, and cost out initiatives to drive improvements in our OpEx ratio, and we'll work to integrate our new JLR business in Brighton. Insofar as the outlook, it does remain too uncertain to give firm guidance, but I can say that January has been trading at and above our expectations. February month to date is trading well. The revenue growth for the period will still be constrained by new vehicle supply. The new and used car vehicle supply constraints will support improved margins that we've been enjoying over the first six months of the year, and consolidation opportunities remain available for the business, and we look forward to exploring some of those in the second half of the year. Now I'd like to turn over the phone to anybody who has any questions for Aaron or myself. Thank you. If you wish to ask a question, please press star one on your telephone and wait for your name to be announced. If you wish to cancel your request, please press star two. If you are on a speakerphone, please pick up the handset to ask your question. Your first question comes from Tom Godfrey from UBS. Please go ahead. Good morning, Nick and Aaron. Thanks for taking my questions. Can you hear me okay? Yes, we've got you clearly, Tom. Great. Maybe just the first one just around sort of the demand that you're seeing across your business at the moment. There was a great slide in your last pack that sort of showed us the growth in your order bank. I'm just wondering, obviously supply constraints continue to impact your revenues, but what sort of growth have you seen across your order bank over the last sort of three months, and how are you seeing the demand environment as of today? A couple of things. Firstly, Tom, I did warn you six months ago that I wouldn't put that slide in every time. Demand continues to exceed our deliveries, and what we're seeing is about a 10%-15% delta between our deliveries and our order write. Our order write is continuing to build up a strong order bank, and we walk into February with the largest order bank that our company's ever had. Right. Just to `be clear, Nick, if we use the VFACTS data as sort of a proxy for revenue growth, you can sort of get to an order bank growth rate in mid-twenties. Is that fair? You can get to that number. I won't sit on just yet. I'm not sure. I think that's a bit high, that number, but our order write is solidly in excess of our delivery rate at the moment. Got it. Very clear. Thank you for the color. Second one I just wanted to ask was around the cost out. There's a bullet point on slide 11 that sort of speaks to further fixed cost outs in the second half of fiscal 2021 around leasehold costs, employee costs, and other expense lines. Can you just maybe give us a sense for the materiality or potentially the quantum of what that could be in the second half? Yeah, I can do that. Last six months, or the first six months of this year, as we talked about six months ago, we targeted around AUD 2 million, and I think we achieved AUD 5.8, so we overachieved during the period. I think we're targeting about the same sort of cost out on our semi-fixed expenses in the second half of the year. Got it. Very clear. Just last one from me, just around cash flows. I'm sort of noting that the ATO debt continued to build in the second half. It's now at AUD 45 million. How should we sort of think about that liability unwinding and how that'll impact cash flows over the next six to 12 months? Yes. At the moment, the ATO, we've entered agreements on all the debt with the ATO, to repay it over 36 months. Those repayments started in through September and November on most of the businesses. At the moment, there is an interest rate attached to the loan. However, the ATO is still remitting all interest when we call up and ask it to be remitted. Whilst we've still got interest-free loan with the ATO, we'll take the 36 months or make a decision to repay it. When COVID settles down a little bit, we might make a decision to pay it a little bit faster. Got it. Thanks for taking my questions, guys. Congrats on the result. Yeah. Thanks, Tom. Thank you. Your next question comes from James Ferrier from Wilsons. Please go ahead. Hi, Nick and Aaron. Congratulations on the results. Thanks, James. First question surrounded demand. Just curious what your DPs are telling you around the type of customer you're seeing coming in and writing an order. Is it the regulars that are coming in, and now is the time that they're going to upgrade, trade in their cars? Or are your DPs seeing a lot of new customers, different sort of profiles to what they would normally have seen historically? I'll start with that, James. I don't have to ask my DPs that. Our CRM system and our Salesforce system is so solid now. At the moment, I can see exactly where our inquiry is coming from and exactly the sources of the inquiry. What we've seen during the period is good solid retention of our customer base, which was your first part of this. That's been at the same level as it's always been. The growth that we've seen in demand has come from new customers. A lot of that inquiry is being sourced digitally, and that inquiry is new inquiry to our business, and it's one of the big improvements that we've made in being able to handle our business over the last six months. We're not quite there on being able to effectively sell online. Our products are incredibly complex, big price, lots of different options. We're getting much better at generating our inquiry and refining our inquiry online, and that's where the growth's coming from, in new customers who are dealing with us through the first part of their buying process online. The growth's there, James. Yeah. Okay. That's encouraging. I know in the past you've talked about seeing pretty limited impact across your customer base from the changes that took place with F&I. Yeah. It's the nature of your customer base, and not many of them purchasing with an ABN. Yeah. Is that still the case with these new customers that you've managed to acquire into the pipeline? Are they similar customers in nature along those lines? They certainly are in new cars, where we've had a slight change of mix, James, in our used car business. We're probably retailing more cars than we used to. The retail-wholesale mix has changed a little bit. As we go deeper down in price levels in used cars, our penetration and mix of finance drops a little bit. Over the first six months of the year, we were up in finance and insurance by nearly 5%, which is pretty solid in terms of income generation during the time from finance and insurance. Yeah. Okay. No, that's helpful. You talk about new vehicle or vehicle supply constraints in general. Yeah. I guess it applies to both new and used, in this environment. I'd like to get a feel, if you can, all things equal for the perfect environment, and based on those constraints, what's the sort of maximum like-for-like sales growth you could actually get in the next six months with those constraints? James, I can't answer it. It's too complex a question, and I'll give you a headache. I can get enough cars to have good growth, they're just not exactly the cars that the market's demanding. Across different brands, I've got some first quarter or March quarter shortages in Land Rover, March quarter shortages in Volkswagen, some March quarter shortages in some super luxury brands like Lamborghini. I seem to have enough supply in the first quarter in BMW and Mercedes-Benz. If we continue at this order rate, we might have some supply constraints in the second quarter in BMW. We may have some supply constraints coming at the end of this period in Volvo. By that time, we should have decent supply coming through in Land Rover and Volkswagen. It's all up and down. We're probably short on light commercial vehicles, particularly in our Volkswagen brand. I think that's an area that will have strong demand through the mixed period. It doesn't impact our group as much as some others, but I think the 100% investment write-off will continue to have a strong, positive impact on light commercial vehicles during the next couple of months. I think there'll be shortages there. It's a garbled answer, I'm sorry, James, but I just can't give you a perfect one. Yeah. That is helpful. That's helpful color. I guess if I can, not put words in your mouth, but maybe if we look at the like-for-like growth that you achieved, like-for-like revenue growth you achieved in the first half, and putting Victoria to the side, it doesn't sound like the supply constraints are going to put that sort of run rate of like-for-like growth at risk. James, without taking the words that you put in my mouth, I'll say that the opportunity exists to go and have that sort of run rate running. Yeah. Okay. That's helpful. Last question from me is just around the margins. The PBT margins, if we use that as a reference point going into the second half. Yeah. I guess it's just too simplistic to strip out JobKeeper and say, "Well, that's your run rate of margins going into the second half," because You're going to have Victoria, touch wood, stay open for the full six months. What sort of color can you add to the margin outlook in the second half relative to what you achieved in the first half? I think the best color I can give you is, we're going to be okay in new and used car margins through the period. Our order bank's pretty solid, and the demand will run that through. I think if you have a look to the slide that we presented on the mix between front end and back end. As we get an improved mix in back end, our margin has opportunity for upside. Yeah. We've got to unlock that. Against that opportunity for upside, we've got no JobKeeper money coming in during this period. My view is that we'd lost, I think we've guided twice, AUD 7 million in the period that we were locked down in Melbourne. I've got to say to you, I didn't budget to lose AUD 7 million. I actually budgeted to make a profit. If you combine all those things together, I think we've got an opportunity if we execute well for actual margin growth at the GP level. How we maintain our OpEx during the period will determine if that flows down to PBT. Yep. No, that's terrific. Thanks for the color. Thanks, guys. Thanks, James. Thank you. Your next question comes from Brendan Carrig from Macquarie. Please go ahead. Hi. Good morning, gentlemen. Just a few follow-ups, if I may. Maybe just starting on the demand side, so pretty well covered there, but just interested in any comments that you can provide around potential risks around your prospective demand and future order book and the potential for substitution into alternatives if the supply environment improves for some of your competitors or for alternative brands. Can you provide any color as to how you're thinking about that potential? Yep. Two or three points in that, Brendan, for you. First thing is, this is why it's great to have the full basket of goods across the luxury segment. We think that people, if they move because of one supply line, will move amongst the segments that we operate. That's a great strength that we have. Secondly, we are conscious of overextending the waits that our customers will accept, and we're conscious that we don't want to run into a period where they decide to roll over and keep their current car because they can't get supply quickly enough. That'll impact on us both on a new car basis and also a used car supply basis. We're watching it closely. We think about six months in luxury in terms of order bank and order right is something that we can manage if we communicate well. We think above that, particularly in the more luxury market, we start to run into some problems. We're not quite there yet, but we're watching it pretty closely. Don't want to impact us over a six-month period, but we're watching it closely, Brendan. Okay. No, that's helpful. Just on the cost out that you mentioned, the AUD 5 million-AUD 6 million that you're targeting for the next half. How much of that relates to the BMW Melbourne site? Is it more broadly across the portfolio of sites? Is Melbourne more of an FY 2022 story? Melbourne's more of an FY 2022 story. The Melbourne cost out should be about AUD 1 million, and we've been working on that for a couple of years. It's more broadly based. There's some fixed expense cost out in New South Wales, there's fixed expense cost out in Queensland that we've just negotiated. Those things will start to appear in this six-month period. We've also got some semi-fixed expenses that relate to those fixed expense costs out, which will apply through. Just to correct an assumption that you made, I said we made AUD 5.8 million in reductions in the first half on like to like. We're only targeting AUD 2 million in the second half. AUD 5 million will be beyond where I think we're going to be. Okay. My apologies. I must have misheard that. Thanks for clarifying. Last one from me. Just on the back-end revenue growth, you talk about the 20% CAGR. Obviously, this was an interrupted period, but is that 20% representative of where you think that the revenue growth profile can return to, and therefore, over time, the mix would continue to increase, I guess, in the back-end gross profit contribution? Will back-end revenue growth be more aligned with front end over the medium term? We're targeting about that 52%, 48% split in gross. One of the things that works counterintuitive to the proposition you put to me is if the new car market grows strongly, because that will drag revenue to the front end or gross to the front end. So long as the new car market, which is growing well, grows, it is hard to get us back to 48% back end. The CAGR rate that we had at 20% did have strong growth from strong sales in the previous period, but also had us taking on greenfields panel businesses during the time. We would still like to do that. It is not an organic 20% CAGR, but we do have the opportunity to expand our business in panel and in service to go and continue to grow. It's an acquisition-led 20% CAGR opportunity rather than an organic one, if that makes sense to you, Brendan. Yes, that does. Okay. I might leave it there. I'll save the rest for later on. Thanks very much. Thank you. Thank you. Your next question comes from Tom Tweedie from Moelis Australia. Please go ahead. Good morning, gents. Thanks for your presentation. Just a question around the acquisition environment and vendor expectations. Obviously, with the buoyant conditions, how are you guys assessing pricing at the moment? Pretty simply, Tom, we're looking at the last three or four years' trading, we're taking a line through that period and doing an average multiple as a starting point for vendors. Really, what I do and what I'm going to continue to do when we make acquisitions is look at what that acquisition looks like within the Autosports template and the Autosports expense base and Autosports margins. We're largely looking to acquire within brands and areas of the market that we have a really good, strong feel on the sort of revenue and margins we can generate. When we make acquisitions, we're looking at what our future outcome's going to be as to what we pay for the business, rather than what it was historically. Okay, brilliant. Thank you. The other question I had was just around, obviously, Holden leaving. Honda's going to the agency model, and I think there's some rumors that Mercedes-Benz are doing the same. How do you guys think the dealer model will change or evolve for the other brands? How do you think they've positioned for that? It's no rumor with Mercedes-Benz. They're changing on the 1st of January 2022, moving to a complete agency model. We're a Mercedes-Benz partner in three locations, and that model is slowly becoming more transparent to us. Obviously, I can't divulge all the details of it at the moment because they're not set. I think the other brands are all looking at what Mercedes-Benz and Honda do, and they're looking at whether it succeeds. T he broad thesis is that if we run an agency model, they own all the stock. They take the marketing, they take the distribution costs away from us, so our OpEx goes down materially. Our margin reduces, and we're trying to get to a position where those two things square out and the risk gets reduced for us, but the margin does get reduced as well. Sorry, the margin opportunity. It does allow better sharing of stock between businesses. It does allow a whole lot of upsides in terms of clarity in pricing. How it operates, I won't be able to tell you fully until I've been operating in it for some time. I don't know if that's answered the question. Mercedes are doing it, and I would say that the rest of the market is looking pretty closely at how they go and whether they succeed. Yeah, perfect. No, thank you. That's it from me. Thanks. Thank you. Your next question comes from Adam Dellaverde from Taylor Collison. Please go ahead. Hey, guys. Thanks for taking my questions. I can't imagine how hard it's been to run the business over the last 12 months. Well done. Thank you, Adam. There have been some challenges, and we do like to be in control, and we haven't been all the time. Look, my questions are more on balance sheet and metal, I guess. What are you seeing coming down the pipeline in both new vehicles, but also genuine parts in terms of availability and also price rises? Firstly, just normal price rises coming through at the moment. Nothing extraordinary. We did see some big price rises in some top-end products, but I think their market is a touch more elastic than the bottom end of our price range. Secondly, on supply, on heavy collision panel parts, we've been a bit tight. I mentioned that had been one of the headwinds in our collision repair business, and I think that continues through, and I think it's been exacerbated by difficulties on the Australian docks at the moment in getting things through. There's slow movement there at the moment, which is lengthening our pipelines a touch. In terms of vehicles, as I said earlier to James Ferrier, what we're seeing is specific areas which are tight. In our Volkswagen business, we've seen delays coming through the important Golf Mk8 product, which is about 25% of that brand. We're seeing similar delays coming from the similar platformed Audi A3, which has been slow coming into the country. We're seeing some delays in use, but more that we have under-ordered those cars and underestimated the demand there. I think that's probably the big issue in super luxury. We're having some difficulties in supply out of the U.K. They've had uncertainty about who's going to turn up to work today which is a real and difficult uncertainty to go and manage. What I'm seeing in terms of pipeline is that the situation, as with everything else, is improving, and I think we're probably at the lowest point of supply arrivals in February and March, and it's okay. Just in terms of, we can see the new car side is super tight, but what about genuine parts? Is there any meaningful supply gaps in that market? No. There was some supply gaps in really simple things like oil filters, but they seem to have evaporated now and we're getting good supply through just heavy collision parts, Adam. If somebody's waiting for a whole new side of a car after an unfortunate event, that might be delayed a little bit, and we're seeing the repair times drift out in our heavy collision accident repair area. Yeah, that's great. Just finally, given the footprint now or where you want to take it and kind of ignoring agencies, what's a normal inventory footprint for the business, assuming no supply issues? Yeah. If I could buy another AUD 100 million worth of stock today, I would. That's about right. Got it. That's great. Thank you. Thank you. Once again, if you wish to ask a question, please press star one on your telephone and wait for your name to be announced. Your next question comes from Anna Guan from Goldman Sachs. Please go ahead. Morning, guys. Thanks for taking my questions. Just a couple of follow-ups if I can, please. The first one is on GP margin improvement you guys achieved in the first half, especially, I guess, in the context of the sales mix you guys did. Are you guys able to quantify the benefit from front-end services? I suppose there's a bit of headwind in the half from lack of service and all that sort of stuff, if that makes sense. Not perfectly, Anna, because it's different across different areas of the business. For new cars that we're delivering to customers, I'll talk more in terms of markdown of recommended retail price than full margin, because every brand has a slightly different margin set up. What we're doing is through the first six months of the year, incorporating our demonstrator mix, we've marked down to the level of about 3.5% the available margin. Which is tighter by about 3% in terms of markdown than the previous period. Having said that, Anna, the previous period was an incredibly constrained margin period. You've got to remember that the 2019 financial years were off the back of 30 months of falling market and a situation where we were oversupplied in the market. When we say that these margins are significantly better in terms of retained margin, they are. They are maintainable certainly for the next six months. Whether they're maintainable further on, is something that we've got to go and work on. I don't think they go back to the previous margin structure. The previous margin in the front end was so compressed that we were under huge pressure on the front end of the business. Is that right if I assume if you did 3.5% markdown in this half, and then I think if I heard it correctly, you said it's -3% versus PCP. Does that mean the PCP was -6.5%? Yeah, that's about right. Okay. I suppose in a normal environment, what should we assume on a normalized basis, 5%-ish? Yeah, I haven't done the work on an average over the last 10 years, so I won't guess that number. It's somewhere in between those two numbers. Okay. On the used front? Used car gross, we're dealing with almost no markdown during the period. Previously, our grosses had been pretty solid. The biggest issue in used cars for me is not so much the gross per unit. It's been the changing mix between wholesale and retail. We were retailing about 40% of our cars. We're probably retailing more like 60%-70% of our cars at the moment. What that's meant is our revenue's dropped a little bit, 7%, as it did in this period. The gross retention per vehicle, and I'll talk this time in dollar terms rather than in percentage terms, at retail. Our business average is about AUD two and a half-AUD 3,000 per used car at retail, and about AUD 1,000 per car at wholesale. The change of mix has delivered at more than a change in margin in the used cars. Yeah, that's really helpful. Thanks. My second and last question is around OEM incentives going into the second half. What are your OEMs thinking or targeting going into second half, I suppose, in the context of potential unwinding of some supply constraints? The basic margin structure hasn't changed at all, Anna, the basic volumes that they're asking us to conduct against our market share opportunity are sensible and good. The things that they're not doing is there's no pressure on them at the moment to put discretionary or additional margin on the table to move cars that they've got. They're not going to do that during the period, there's no pressure on us, as well, to take them for that reason. The second point that I'll make, I think it shows through in our first half result, is that when you don't buy as many cars from them, the opportunity for them to give you margin is reduced. Our OEM KPI bonuses that you'll see in the back have been reduced during the time, it's almost 100% of that reduction is in purchasing. I think it's AUD 141 million less in stock from this period versus the prior corresponding period. Yeah, that's great. Thanks, Guys. Thanks, Anna. Thank you. There are no further questions at this time. I'll now hand back to Mr Pagent for closing remarks. Thank you. I think I've used up all the time. I just wanted to close by thanking all the investors for their time this morning and thanking them for supporting us over the last 12 months. Thank our OEMs as well for the great support that they've given us, particularly during the difficult time of COVID, and to thank our staff for what has been an extraordinary effort over the last 12 months. Thank you very much. This result is yours. Thank you all for dialing in. That does conclude our conference for today. Thank you for participating. You may now disconnect.