Shares of Motus, which runs one of SA’s biggest car dealerships, were on track for their best day in a month on Monday, after it flagged a bump in full-year profit driven by SA’s economic recovery from the Covid-19 pandemic.
The automotive group said in the brief statement on Monday that headline earnings per share (Heps) would increase 68%-73% to 1,980c-2,040c to end-June. Attributable profit is expected to rise by 55%-60% to R3.25bn-R3.35bn, but Motus did not go into detail.
By the JSE’s close Motus’s share price was up 2.97% to R117.03, after reaching as high as R119.61 in earlier trade. It has nearly quadrupled over the past two years.
Motus sells new and pre-owned cars through its network of more than 300 car dealerships in SA, which took a knock in the initial stages of the coronavirus pandemic lockdown. Its operations also straddle the UK and Australia, and have a presence in Asia.
The company, valued at R20.8bn, said in February it increased market share in its main SA market, supported by an expansion of its vehicle model range, particularly in the entry-level and small to medium SUV categories because of consumers buying down, as well as new model launches.
It added at the time that the global chip supply shortages resulted in a drop in new vehicle production, boosting demand for existing new stock.
The Motus will release its 2022 results on August 31.
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.