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MOTUS HOLDINGS LIMITED - Trading and Operational Update

Release Date: 18/01/2024 08:00
Code(s): MTH     PDF:  
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Trading 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")


Economic environment

The trading environment is tough, marked by continuous power outages, high interest
rates, fuel prices and energy costs. As a result of these factors, consumers are
experiencing considerable strain on their disposable income. The higher than normal
vehicle and parts price inflation exacerbated by the impact of the weak Rand has
negatively impacted affordability.

In addition, the oversupply of vehicles from the Original Equipment Manufacturers
(OEMs) and additional "discounts" to generate vehicle sales have negatively impacted

The two key Motus strategies of internationalisation and diversification away from
profitability of vehicle sales are providing support for the areas that are more severely
impacted by the constrained consumer.


We expect to deliver double-digit revenue growth and stable operating profit for the six
months to 31 December 2023, compared to the period ended 31 December 2022. This is
consistent with the guidance provided at the results presentation on 30 August 2023.

As expected, we are experiencing elevated finance costs because of higher average
working capital and vehicles for hire levels, acquisitions concluded during the 2023
financial year and high interest rates in the geographies in which we operate.

The Group is actively managing operating and finance costs, and closely monitoring
working capital, vehicles for hire and debt levels. Management is focusing on variables
under their control to reduce stock levels responsibly. Vehicles for hire levels will reduce
by 30 June 2024 due to the seasonal nature of the business.

Performance is supported by inflationary increases and contributions from acquisitions in
the prior year.

Shareholder returns

It is anticipated that an appropriate dividend will be paid in March 2024.


Debt to equity is higher than historical levels due to elevated vehicles for hire and
inventory, and acquisitions concluded in the 2023 financial year. However, we remain
well within agreed bank covenant levels with more than sufficient banking facilities.


The long-term strategic priorities of the Group remain unchanged and are focused on
ensuring that we are the leading automotive group in South Africa, with a select
international presence in the United Kingdom and Australia, and a limited presence in
South East Asia and Southern and East Africa.

We are confident that our diversified integrated business model, implementation of
existing strategic initiatives and the experienced management team, will successfully
navigate the business during these difficult times.

Trading update

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.

A review by management of the projected financial results for the six months ended
31 December 2023 has indicated that:

                       Projection for the six             Actual for the     Percentage
                                    months to               six months to         range
                             31 December 2023            31 December 2022      decrease

Earnings per share      640 cents per share to        916 cents per share    20% to 30%
(EPS)                     735 cents per share

Headline earnings       630 cents per share to        902 cents per share    20% to 30%
per share (HEPS)          720 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.

Unaudited interim financial results

The unaudited interim financial results of the Group for the six months ended
31 December 2023 will be published on Tuesday, 27 February 2024, with the investor
presentation being hosted virtually and in-person at the JSE (One Exchange Square,
Gwen Lane, Sandown, 2196) at 09:00 on Tuesday, 27 February 2024.

Registration details for the investor presentation are available on the Motus' website

By order of the Board

18 January 2024

Merchantec Capital


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
several 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 because of new information,
future events or otherwise.

Date: 18-01-2024 08:00:00
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