Motus Holdings’ share price shot up 4.6 percent yesterday after it said attributable profit from its motor dealer and rental operations was likely to increase between 45 and 55 percent in the year to June 30, to R3.04 billion. Image, Supplied.
Motus Holdings’ share price shot up 4.6 percent yesterday after it said attributable profit from its motor dealer and rental operations was likely to increase between 45 and 55 percent in the year to June 30, to R3.04 billion.
Headline earnings were anticipated to be 1 770-1 179 cents a share, an increase of 50-60 percent compared with the 2021 financial year.
The share price traded at R114.40 yesterday afternoon, with the price up 17.5 percent over 12 months.
The import and distribution division’s revenue was increasing due to improving sales to dealers, sales to car rental companies and higher selling prices, the group said in update. The annual results are expected to be published on August 31.
Operating profit in the division was benefiting from the higher volume sales, favourable foreign exchange rates and improved sales through the dealer channel.
Improved availability of vehicles had resulted in growing market share in South Africa.
The importer brands had increased market share and as a result, the car parc has shown a consistent growth trajectory. The car parc was estimated at 750 000 vehicles for the four importer brands, which increases workshop activity and the sales of parts and accessories in the group.
In the retail and rental division operating profit was increasing from all business segments including the International operations. Vehicle utilisation in the car rental business had increased to 72 percent.
The four importer brands were supplementing an extensive model range with new vehicle launches in the growing five-door hatch and SUV/Crossover categories in South Africa.
The increased demand for new vehicles, as a result of erratic stock supply, has resulted in increased margins.
Global supply chain disruptions continue to impact the delivery of vehicles, panels and parts, a situation only expected to normalise in the second half of the 2023 financial year.
The pre-owned vehicle market remained buoyant across all geographies because of the shortage of new vehicles.
The de-fleeting of rental vehicles to the Auto Pedigree network ensured the group had a constant source of good quality pre-owned vehicles. The increased demand for pre-owned vehicles has resulted in increased margins.
The South African after-market and parts division continued to benefit from the distribution centres in China and Taiwan, while increasing the retail footprint in South Africa was supporting the wholesale business.
edward.west@inl.co.za
BUSINESS REPORT