Carsales.com (ASX:CAR) has flagged an expected impairment charge of $48 million in relation to its Stratton Finance Group Cash Generating Unit.
The business says external factors including ASIC legislative changes on car financing, and, continued tight credit market conditions have impacted the valuation of Stratton.
Excluding the change in Stratton's financial performance and the non-cash impairment charge, Carsales says based on current market conditions it affirms its performance outlook statement provided at the 2018 AGM.
Carsales says it believes the finance market remains attractive in supporting its core business over the longer term and will continue to evolve both product and operating models to leverage these financial market opportunities.
Shares in Carsales.com. (ASX:CAR) are trading 1.9 per cent lower at $11.53.