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Audited Consolidated Results for the year ended 30 September 2024 and Cash Dividend Declaration
WE BUY CARS HOLDINGS LIMITED
Incorporated in the Republic of South Africa
Registration number 2020/632225/06
JSE Share code: WBC
ISIN: ZAE000332789
("WeBuyCars" or "the Company" or "the Group")
AUDITED CONSOLIDATED RESULTS FOR THE YEAR ENDED 30 SEPTEMBER 2024 AND CASH DIVIDEND DECLARATION
The Group's Board of Directors ("the Board") is pleased to present the financial results for the year ended
30 September 2024 following the unbundling and separate listing of WeBuyCars on the Main Board of the
JSE Limited on 11 April 2024.
Salient features
For the year ended 30 September 2024 2023 % change
Units bought Number 167 741 142 337 17,8
Units sold Number 165 185 141 851 16,4
Revenue Rm 23 319,2 20 018,0 16,5
Core headline earningsi Rm 815,4 661,1 23,4
Core headline earnings per sharei,ii Cents 217,4 197,9 9,9
Basic earnings Rm 343,1 821,1 (58,2)
Basic earnings per shareii Cents 91,5 245,9 (62,8)
Headline earnings Rm 343,9 818,8 (58,0)
Headline earnings per shareii Cents 91,7 245,1 (62,6)
i. Core headline earnings is a non-IFRS measure which excludes gains/losses, costs and adjustments relating
to acquisitions and disposals of investments; once-off transaction costs which are directly attributable to
corporate activity; and non-cash accounting adjustments to the call option derivative asset relating to a non-
controlling interest.
ii. Weighted average number of ordinary shares ("Shares") in issue at 30 September 2024: 375 029 205.
Actual number of Shares in issue at 30 September 2024: 417 181 120. During the year ended 30 September
2024:
717 481 ordinary shares were issued to Transaction Capital Motor Holdco Proprietary Limited on 29
February 2024; 42 467 760 ordinary shares were issued to Coronation Asset Management Proprietary
Limited on 27 March 2024 and 40 000 000 ordinary shares were issued on 11 April 2024 to the Bookbuild
investors as part of the pre-listing capital raise.
Group results
The Group delivered exceptional results in a challenging trading environment, characterised by low GDP
growth, pressure on consumer affordability, high interest rates and low levels of consumer confidence.
WeBuyCars utilises core headline earnings to measure and benchmark the underlying performance of the
business. Core headline earnings represents headline earnings adjusted for certain non-recurring or non-
cash items that, in the view of the Board, may distort the financial results from period to period.
WeBuyCars has continued its long-term earnings growth with core headline earnings for the year ended 30
September 2024 at R815,4 million growing 23,4% and core headline earnings per share growing 9,9%, when
compared to the prior year. The key drivers of this growth in core headline earnings were higher volumes,
higher average selling prices, operational efficiencies, higher inventory turns, and cost efficiencies driven by
economies of scale. Gross margins were maintained at similar levels to those recorded in the prior year,
despite the difficult trading conditions. The core headline earnings per share was unfavourably impacted by
the February and March 2024 new share issues (83 185 241 ordinary shares) implemented as part of the
pre-unbundling steps and the pre-listing capital raising initiatives.
Basic earnings per share and headline earnings per share for the year ended 30 September 2024 were
impacted by the following non-core, once-off transaction costs and non-cash call option derivative accounting
adjustments:
• For the year ended 30 September 2024, pursuant to the successful listing on the Main Board of the
JSE Limited, the Group incurred once-off professional, Legal and JSE listing fees totalling R45,0
million.
• As set out in the WeBuyCars Pre-listing statement, dated 12 March 2024, the Group held various call
options which gave it the right to purchase the 25,1% shareholding in the Group from I VDW Holdings
Proprietary Limited, for which a call option derivative asset was raised in the prior periods. Upon
adoption of the new Memorandum of Incorporation (on 25 March 2024) the shareholders' agreement
was cancelled which led to the cancellation of the call options. The call option derivative asset of
R426,5 million (as at 30 September 2023) was consequently derecognised on 25 March 2024. This
fair value loss on derecognition of the call option derivative is once-off in nature, non-core and has no
cashflow impact.
Group revenue at R23,3 billion increased by 16,5% when compared to the prior year. Buying and selling
volumes at 167 741 and 165 185 units were up 17,8% and 16,4%, respectively. Sold volumes reached an
all-time monthly record for WeBuyCars of 14 594 units in July 2024.
WeBuyCars' balance sheet is conservatively geared, supported by high cash conversion rates. The net cash
generated from operating activities (at R591,4 million) for the year ended 30 September 2024 was up 1,6%
on the prior year. Net interest-bearing liabilities (excl. IFRS 16) of R1 119,6 million, which consists primarily
of property mortgage loans (R715,3 million) and working capital borrowings (R404,3 million) to fund inventory,
are 8,5% down on the prior year. During the first half of the 2024 financial year, management refinanced the
property portfolio with Rand Merchant Bank at a lower interest rate and more recently has also been
successful in lowering the interest rates on the working capital facilities.
Outlook
WeBuyCars is well-positioned to benefit from lower interest rates, higher levels of consumer confidence, an
improvement in new vehicle sales volumes and cost efficiencies driven by economies of scale.
In May 2024, the Group communicated its ambition to grow monthly volumes to 23 000 and to double market
share by 2028. Pursuant to this, the Group sets out below an update on the following growth initiatives:
• the successful opening of the East London supermarket in the Eastern Cape, with a capacity to
accommodate 300 vehicles for sale, on 10 June 2024.
• the successful opening of the Rustenburg supermarket in the North West province, with a capacity to
accommodate 300 vehicles for sale, on 1 October 2024.
• in September 2024, WeBuyCars signed a lease agreement to secure a bigger, more prominent
trading location in Pietermaritzburg in KwaZulu-Natal. The new location has the capacity to
accommodate approximately 350 vehicles for sale.
• the planning for the Lansdowne supermarket in Cape Town is progressing well and the development
is scheduled for completion in October 2025. This supermarket will have the capacity to accommodate
approximately 1 150 vehicles for sale.
• the Group entered into a property sale agreement to purchase land in Montana, Pretoria, which will
be developed during 2025 to accommodate approximately 1 000 vehicles for sale.
• during October 2024, an existing motor dealership in Vereeniging in Gauteng was acquired.
WeBuyCars plans to commence trading from this facility in May 2025.
These developments will be funded through existing cash resources and available debt facilities.
WeBuyCars continues to improve its digital vehicle buying and selling platforms as well as its leads
management processes and systems.
Dividends
As set out in the WeBuyCars Pre-listing statement, the Company's normal dividend policy, as a high
level benchmark, is to declare between 25% and 33% of its headline earnings as a dividend, subject to
working capital requirements and capital expenditure required for expansion and maintenance.
WeBuyCars is a growth company and intends to responsibly grow its footprint across South Africa. It
believes that there are opportunities to capitalise on in the short- to medium-term, some of which are set
out under Outlook above. The pursuit and efficient execution of these opportunities should add value to
shareholders.
Notice is hereby given that a gross final cash ordinary dividend of 25 cents per ordinary share
(2023: 8 205 cents per ordinary share) has been declared by the Board, payable to shareholders of the
417 181 120 (2023: 2 071 797) ordinary shares. The dividend has been calculated at 25% of the core
headline earnings of WeBuyCars for the second half of the financial year to 30 September 2024. The
dividend will be paid out of income reserves to all holders of ordinary shares recorded in the Company's
register on the record date. The dividend will be subject to local dividend withholding tax at a rate of 20%
unless the shareholder is exempt from paying dividend tax or is entitled to a reduced rate. This will result
in a net final dividend of 20 cents per ordinary share for those shareholders who are not exempt from
paying dividend withholding tax.
The salient dates relating to the payment of the ordinary dividend are as follows:
Salient dates and times 2024
Publication of declaration data Monday, 18 November
Last date to trade cum dividend Tuesday, 3 December
First trading day ex dividend Wednesday, 4 December
Record date Friday, 6 December
Payment date Monday, 9 December
The income tax number of WeBuyCars is 948 083 8193.
Share certificates may not be dematerialised or rematerialised between Wednesday, 4 December 2024
and Friday, 6 December 2024, both days inclusive.
All dividend payments will only be made into a nominated bank account by electronic funds transfer.
Shareholders who have not yet provided their bank account details to Computershare Investor Services
Proprietary Limited are reminded to contact them on 086 11 00 933 or +27 11 370 5000 with their bank
account details into which the dividends can be paid electronically.
Results announcement
The content of this results announcement is the responsibility of the Board. Shareholders are advised
that this results announcement represents a summary of the information contained in the audited
consolidated and separate annual financial statements for the year ended 30 September 2024 ("2024
AFS"), published on SENS via the JSE cloudlink:
https://senspdf.jse.co.za/documents/2024/JSE/ISSE/WBCE/FY2024.pdf and on WeBuyCar's website
https://www.webuycars.co.za/investors/financial-results on 18 November 2024, and does not contain full
or complete details of the financial results.
Any investment decisions by investors and/or shareholders should be based on consideration of the
2024 AFS and shareholders are encouraged to review the 2024 AFS, which are available as set out
above. Copies of the 2024 AFS may be requested from investors@webuycars.co.za.
Shareholders are advised that the WeBuyCars full year results presentation for the year ended 30
September 2024 will be held on Monday, 18 November 2024 at 09:00. There will be a live webcast of
the results presentation, shareholders wishing to view the live webcast should register at:
https://www.corpcam.com/WeBuyCars18112024. A copy of the presentation will also be available on the
Company's website: https://www.webuycars.co.za/investors/presentations.
Report of the independent auditors
PricewaterhouseCoopers Inc, the Group's independent auditor, has audited the consolidated and
separate annual financial statements for the year ended 30 September 2024 from which the consolidated
results contained in this report have been derived, and has expressed an unmodified audit opinion
thereon.
By order of the Board
Johan Holtzhausen Faan van der Walt
Chairperson CEO
Centurion
18 November 2024
Joint Sponsors to WeBuyCars
PSG Capital Pallidus Exchange Services
Date: 18-11-2024 07:05:00
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