CMH final results February 2019
Revenue for the year increased to R11.155 billion (2018: R10.573 billion), gross profit rose to R1.825 billion (2018: R1.766 billion), operating profit decreased to R411.2 million (2018: R438.4 million), profit attributable to equity holders of the company fell to R228.2 million (2018: R247.4 million), while headline earnings per share weakened to 305.2 cents per share (2018: 332.9 cents per share).
A dividend (dividend number 62) of 115 cents per share will be paid on Tuesday, 18 June 2019 to members reflected in the share register of the Company at the close of business on the record date, Friday, 14 June 2019.
It is not easy to be optimistic about the short-term future of the domestic market. The brief euphoric spell, which prevailed during the first months following the election of our new president early last year, soon evaporated in the face of daily revelations of large-scale corruption, further job losses, higher indirect taxes, and a power struggle ahead of the May elections between the ANC and the labour unions, and within the party itself. The Eskom debacle has been, and continues to be, highly disruptive and costly.
Predictions of national motor sales growth for calendar 2019 vary from -1% to +2%, which will mean the lowest level in almost a decade. On the positive side, interest rates appear to be stable, and, in real terms, new vehicle affordability continues to improve. NAAMSA has recently reported that the rate of new vehicle price increases has been well below the CPI for the last 15 months. Competitive pressures facing motor manufacturers are likely to ensure that attractive sales incentives continue.
The Group is in a sound financial position. Its financial statements record a solid and stable asset base, backed by strong cash flow generation. Costs have been reduced to a minimum, and the management team is experienced, hardworking and enthusiastic. The missing ingredient is a boost to the revenue line.