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MOTUS HOLDINGS LIMITED - Voluntary Announcement

Release Date: 06/11/2020 10:00
Code(s): MTH     PDF:  
Wrap Text
Voluntary Announcement

Motus Holdings Limited

Incorporated in the Republic of South Africa

Registration number: 2017/451730/06

ISIN: ZAE000261913

Share code: MTH



Impact of COVID-19

The alarming increase in global COVID-19 infections has resulted in many countries having
to re-institute certain restrictions and curfews on people's movements, especially in
Europe and the United Kingdom (UK).

Domestically, the situation is more positive where the daily fatality rate has fallen although
the daily rate of infections has edged up further. There are also mixed concerns of a second
wave of infections which could be exacerbated by the festive season.

The UK lockdown which commenced on 5 November 2020 will impact the UK businesses
negatively, the extent is currently unknown. The government salary support (furlough)
will be re-introduced for the month of November 2020.

In Australia, Melbourne is coming out of lockdown which will be positive for the Ballarat
and Packenham businesses, and there have been no further lockdowns in Sydney.

The uncertainty around the impact and extent of the COVID-19 crisis persists and will not
change in the short to medium term. Motus will continue to adapt to the new operating
and trading environment as it evolves.

South African economy

Important   developments     with   regard   to   fighting   corruption,   embarking   on   an
infrastructural investment programme with the private sector, freeing up the electricity
supply network, providing greater certainty with regard to land reform and launching
broadband spectrum have provided a positive view for South Africa. Despite the above,
the probability of further ratings downgrades when rating agencies review the country's
credit ratings towards the end of November 2020 is a possibility.
Vehicle market

In South Africa, new vehicle sales are improving with average volumes for the last four
months amounting to 35 400 vehicles per month (prior year average per month at 45
026). The Motus Importer brands retail sales via dealerships have declined by 17% for the
10 months.

 Total SA Market       October       October
                      YTD 2019      YTD 2020

 Passenger             295 016        196 664

 LCV                   132 081          88 873

 Other                  23 161          18 460

 Total                450 258        303 997

Source: Naamsa

Management projections for new vehicle sales for calendar 2020 remain at between
355 000 to 375 000 vehicles, with growth from this base projected at 420 000 to 440 000
vehicles in calendar 2021. The vehicle market for the 12 months to December 2019 was
536 000 units, so the decline will be approximately 30% (however the vehicle rental and
government purchases account for 10% of the decline so the dealership decline will be in
the region of 20%).

Outlook and guidance

Despite the negative impact of the COVID-19 crises on the economies in which we operate
and its impact on the Motus business, we provide the following guidance with regard to
the projected financial results for the six months ending 31 December 2020:

                          Projected range              Actual                  Range

                            31 December            31 December
                                 2020                   2019

 Profit before tax       R1,110 billion to       R1,243 billion         -10% to 0%
                         R1,245 billion

 Earnings per share      430 cents to            479 cents per share    -10% to +5%
                         505 cents per share

The liquidity position remains strong, supported by significant unutilised banking facilities.
Motus remains well within original bank covenant levels with sufficient headroom.
Motus will continue to assess the impact of the virus on the business and will provide
further updates if and when appropriate.

The information contained in this announcement has not been reviewed or reported on by
Motus’ external auditors.

The interim financial results of the Group for the six months ending 31 December 2020
will be published on 24 February 2021.

By order of the Board

6 November 2020


The Standard Bank of South Africa Limited


Certain statements in this document are not reported financial results or historical
information, but forward-looking statements. These statements contains the views and
forecasts of management at the time of the publication of this announcement and are
predictions of or indicate future events, trends, future 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: 06-11-2020 10:00:00
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