Motus Holdings reports solid operational performance

By EDWARD WEST Time of article published Aug 28, 2019

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CAPE TOWN -  Motus Holdings reported a solid operational performance in the year to June 30 with headline earnings per share up 11 percent to 1 090 cents.

Revenue growth increased 3.5 percent to R79.7 billion and operating profit was up one percent to R3.6 billion. The final dividend was raised to 250 cents from 240 cents.

CEO Osman Arbee said in a statement Wednesday they were pleased with the performance given the uncertain markets in the automotive industry, and particularly South Africa, continued to under perform as consumers delay purchases and trade down to cheaper vehicles. 

“We will consider growth in selected international markets. This will be selective and entail the introduction of additional brands in areas close to existing dealerships via bolt-on acquisitions,” he said.

Organic growth through optimization and innovation would remain a focus.

The group’s passenger and commercial vehicle businesses, including the UK and Australia, retailed 131 725 new (2018: 146 455) and 83 554 pre-owned vehicles (2018: 81 123) during the year. 

The reduced sales were attributable to market contraction and reduced volumes to the car rental industry in South Africa, where the margins were lower. UK and Australia acquisitions continued to contribute positively to sales volumes.

Revenue improved by 3,5 percent despite reduced sales volumes attributed to market contraction and the sales mix, enhanced by price increases and acquisitions. 

The revenue contribution from pre-owned vehicle sales increased by 11 percent and the selling of parts and rendering of services contributed positively.

All business segments reported an increase in operating profit with the exception of the Retail and Rental segment.  

The Import and Distribution segment reported a 3 percent decline in revenue with growth in operating profit of 3 percent, the Retail and Rental segment reported 3 percent growth in revenue with an operating profit decline of 6 percent.

,The Motor-Related Financial Services segment reported flat revenue with a 5 percent growth in operating profit. The Aftermarket Parts segment reported an increase in revenue and operating profit of 8 percent and 11 percent respectively.


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