Smartgroup Corporation Ltd. (ASX:SIQ) will look for acquisitions. Michael Carapiet, Chair of the Board, said "I briefly also wanted to highlight our approach to capital allocation, ensuring that we deliver long-term sustainable growth and maximize shareholder value. The current novated leasing market and our strategic priorities provide significant opportunities for medium and long-term growth.

To ensure that we make the most of these opportunities, we will continue to invest in core and digital technology as well as customer experience improvement initiatives. These necessitate allocating sufficient capital to ensure that we can execute well. Similarly, we need to maintain flexibility to take advantage of potential acquisitions and partnership opportunities that might arise.

And our fleet funding pilot is an important learning opportunity for us so we will ensure it receives enough funding to continue. We will continue to pay fully franked dividends in line with our current dividend policy of paying 60% to 70% of NPATA to shareholders. We will, however, return excess capital to shareholders as appropriate while ensuring that we maintain our balance sheet flexibility so that we can act on strategic acquisition opportunities".