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Further Trading Statement and Operational Update
Motus Holdings Limited
(Incorporated in the Republic of South Africa)
Registration number: 2017/451730/06
Share code: MTH ISIN: ZAE000261913
("Motus" or “Group")
FURTHER TRADING STATEMENT AND OPERATIONAL UPDATE
TRADING STATEMENT
In terms of the Listings Requirements of the JSE Limited, companies are required to
publish a trading statement as soon as they become reasonably certain that the financial
results for the period to be reported on will differ by more than 20% from that of the
previous corresponding period.
Further to the initial trading statement, operational and strategic update released on SENS
on Thursday, 18 November 2021, an updated review by management of the financial
results for the six-months ended 31 December 2021 has indicated that:
Projection for the Actual for the six Percentage range
six months to months to
31 December 31 December
2021 2020
Operating profit R2 100 million to R1 750 million 20% to 26%
R2 200 million
Profit before tax R1 800 million to R1 287 million 40% to 50%
R1 930 million
Earnings per share 760 cents per share 507 cents per share 50% to 60%
(EPS) to 810 cents per
share
Headline earnings per 763 cents per share 526 cents per share 45% to 55%
share (HEPS) to 815 cents per
share
The financial information on which this trading statement is based (and any other
information contained in this announcement) has not been reviewed or reported on by
Motus’ external auditors.
OPERATIONAL UPDATE
New vehicle markets
Vehicle sales are continuing to recover despite the erratic vehicle supplies being
experienced by Original Equipment Manufacturers (OEMs).
In South Africa, The Automotive Business Council for South Africa (naamsa) reported
annual aggregate industry sales for new vehicle sales to be 464 122 vehicles for the
12 months to 31 December 2021, compared to 380 206 vehicles in the comparative
period, up by 22% for the calendar year. Management projects annual new vehicle sales
to be between 470 000 and 490 000 vehicles for the financial year ending 30 June 2022,
compared to 445 319 vehicles in the comparative period. Motus’ increased market share
to date has been supported by an expansion of its vehicle model range, particularly in the
growing entry level and small to medium SUV categories, coupled with exciting new model
launches.
In the UK, the Society of Motor Manufacturers and Traders (SMMT) reported annual new
vehicle sales (excluding Heavy Commercial Vehicles) to be 2 008 549 vehicles for the
12 months to 31 December 2021, compared to 1 930 478 vehicles in the comparative
period. Light Commercial Vehicle volumes were strong, driven by an increase in home
deliveries, and were reported at 355 380 vehicles, up by 21% for the calendar year. Heavy
Commercial Vehicle sales were reported at 37 163 vehicles, up by 13% for the calendar
year.
In Australia, the Federal Chamber of Automotive Industries (FCAI) reported annual new
vehicle sales of 1 049 831 vehicles for the 12 months to 31 December 2021, compared to
916 968 vehicles in the comparative period, up by 14,5% for the calendar year.
Pre-owned vehicle markets
Strong demand for pre-owned vehicles across all geographies continues on the back of the
shortage of new vehicles.
The industry is experiencing a short supply of pre-owned vehicles from car rental
companies. We have identified alternative sources of pre-owned vehicles.
Global supply chain disruptions
Global supply chain disruptions continue to impact the delivery of vehicles, panels and
parts, with substantial increases in freight and logistics costs negatively impacting
operating margins.
Our four importer brands and the 21 non-owned brands are fortunate in that they have
an extensive model range which enables them to focus on available stock. While there are
shortages of certain derivatives at different times, we are still able to offer the customer
a wide selection of brands and models.
We anticipate inventory supplies to normalise during the first quarter of our 2023 financial
year.
Car Rental
This business has been restructured and costs having been reduced accordingly. During
December 2021, the fleet was increased to 17 200 vehicles (owned and leased) and at
June 2022, it is estimated to be around 15 500 vehicles (owned and leased). We are
currently operating at utilisation levels in excess of 70%.
Foreign currency cover (SA)
Hyundai, Kia and Renault have forward cover on the Euro and US Dollar to 31 July 2022
at market related forward cover rates. All outstanding Mitsubishi commitments are
covered.
Liquidity
The liquidity position remains strong, supported by significant unutilised banking facilities.
Debt to equity levels remain below targeted levels, projected to end at below 35% for the
six-month period ended 31 December 2021.
Motus remains well within agreed bank covenant levels with sufficient liquidity headroom
for strategic acquisitions, dividend distributions and share buy-backs.
Shareholder returns
An interim dividend for the half year will be considered at the February 2022 Board
meeting.
Unaudited interim financial results
The unaudited interim financial results of the Group for the six-months ended 31 December
2021 will be published on Tuesday, 22 February 2022, with the investor presentation being
hosted virtually at 09:00 on Tuesday, 22 February 2022 (see www.motus.co.za for
registration details).
By order of the Board
Johannesburg
25 January 2022
Sponsor
Merchantec Capital
Disclaimer:
Certain statements in this announcement are not reported financial results or historical
information, but forward-looking statements. These statements contain the views and
forecasts of management at the time of the publication of this announcement and are
predictions or indicate future events, trends, prospects, objectives, earnings or plans. If
one or more of these risks materialise, or should underlying assumptions prove incorrect,
the actual results may differ materially from those anticipated. There are a number of
factors that could cause actual results and developments to differ materially from those
expressed or implied by these forward-looking statements. Forward-looking statements
apply only as of the date on which they are made, and we do not undertake any obligation
to update or revise any of them, whether as a result of new information, future events or
otherwise.
Date: 25-01-2022 08:00:00
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