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Case Study: P2P Transport
27.Mar.2018 Accounting | Business Advice | Financial Planning | Tax Accounting

Case Study: P2P Transport

P2P is one of Australia’s largest fleet management businesses focused on the point-to-point passenger transport industry, comprising of a rapidly growing fleet of over 1020 passenger vehicles, which are offered to independent professional drivers.

Diversified vehicle offering

The fleet includes a range of taxis, corporate and ride-share vehicles servicing each segment of the point-to-point passenger transport industry.

Integrated business model

Their business model is premised on the control of all key stages of the fleet management lifecycle, from vehicle acquisition, in-house customisation and vehicle servicing, driver support, and fleet management and administration.

Expansive operating footprint

The business manages it’s fleet of vehicles from eight sites situated in Victoria (Melbourne), NSW (Sydney) and Queensland (Brisbane, Gold Coast and Toowoomba)

 

How we’ve played a role in P2P’s business

RBK Advisory has assisted primarily with accounting for P2P Transport’s mergers and acquisitions, bringing together multiple accounting systems from business units all around Australia. We ensured all P2P Transport financial accounts were in order, and accurate for the presentation of financial statements to the auditors (Deloitte). As the initial step towards getting P2P listed on the ASX, three years of audited financial accounts were required for the Initial Public Offering. With very short notice, we worked closely (in consultation with the P2P Group CFO), to ensure all accounting, reporting and taxation compliance requirements were met in order to facilitate to listing of the P2P Group on the Australian Stock Exchange.

Most recently, RBK Advisory assisted with the preparation of the Half Yearly Consolidated Financial Statements as at 31 December 2017 for the P2P Transport Group, including complex accounting issues due to the multiple mergers and acquisitions requiring consideration of the appropriate ‘accounting acquirer’ and treatment for general purpose reporting purposes. What does that mean? Essentially, hard core financial reports 😉

We continue to assist P2P Transport with management consultation, financial accounts preparation, taxation and other compliance matters.

Our ongoing accounting and business advisory has resulted in…

Successful IPO in December 2017
 RBK Advisory was instrumental in P2P Transport meeting the ASX and ASIC listing requirements which has increased market exposure, adding to an already strong vehicle acquisition pipeline; strong balance sheet and providing funding capacity to deliver growth.

Accelerated execution of fleet acquisition strategy. Listing P2P on the ASX has facilitated the group’s planned growth
 P2P Transport fleet comprising 937 vehicles as at 31 December 2017 (1,012 vehicles as at 28 February 2018)
 Announced acquisition of 108 vehicles on day of ASX listing; completion of Gold Coast taxi acquisition on 11 Jan 2018 (additional 109 vehicles)
 P2P Transport has now acquired 86% of forecast vehicles required to achieve FY18 prospectus forecast
 Organic growth through plate only lease arrangements now further increasing the rate of fleet growth.

Strong financial data – Management now has accurate financial data to depend upon (and to integrate into their newly implemented Group Wide Accounting systems)
 H1 FY2018 Pro forma EBITDA $2.7 million (statutory underlying H1 FY2018 EBITDA $0.6 million inline with management forecasts
 Rapid growth in fleet during H1 FY2018 – revenue generation and cost efficiencies to follow in H2 FY2018
 Cash and cash equivalents position $15.2 million
 Operating cashflow conversion from EBITDA (excluding IPO and related one-off costs) 66.8%.

 

Did we lose you on that last bit? In summary: our team loves helping all shapes and sizes of business, but when we get to work with some of the bigger players, we really get to show off our skillset.

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