Commentary
Environment

The South African operations contributed 67% to revenue and 93% to operating profit, for the period (2018: 68% and 92%), with the remainder being contributed by the UK, Australia and South East Asia.
The global and South African political and economic environments remain unstable. Emerging markets have been more severely affected compared to developed economies. The latest spread of the Coronavirus will impact economies throughout the world as China is a large part of the global economy. The impact is unknown at this stage, however, Motus will continue to monitor the situation.
The economic outlook for South Africa remains weak and challenging in the immediate and medium term. Consumer and investor confidence is depressed resulting in low economic growth rates being projected for the immediate and medium term. This is exacerbated by the potential investment ratings downgrade, retrenchments (mainly in our customer base), state-owned entity problems, load shedding, lower tax revenues, a deteriorating fiscal position and high unemployment. Additional risks that are business specific include access to credit, higher bank bad debt provisions, consumers under pressure, cyber risk and legislation which results in additional cost of doing business.
The NAAMSA estimate of vehicle sales for the 2020 calendar year is 549 000 vehicles compared to 536 628 in the prior year. We believe these estimates are optimistic. Vehicle finance houses have forecast 518 000 vehicles for the 2020 calendar year, which is a 3,5% decline from an already low base. Vehicle sales are linked to the strength of the economy. The headwinds are here to stay for at least two to three years resulting in limited opportunity to grow new vehicle sales, creating risk of negative growth. Industry margins could continue to underperform as consumers continue to delay purchases, trade down to cheaper vehicle models and place pressure on the quality of the pre-owned vehicle supply.
In South Africa, the total new vehicle market performance declined by 2% for the six-month period according to NAAMSA (six months to December 2019: 279 016 units, six months to December 2018: 284 817 units).
At December 2019 our retail market share is 20,1% (December 2018: 19,3%), positively impacted by the Motus Importers who achieved higher sales volumes in the entry level models.
Motus performed better than the market and reported 2% higher new and pre-owned vehicle unit volumes (December 2019: 111 939 units; December 2018: 109 796 units).
The UK new vehicle market has declined by 1% for the six months to December 2019 compared to 2018, reflective of domestic and international market contraction. The passenger vehicle market contracted by 2,4%, while commercial vehicles improved 2%. The UK market has been negatively impacted by weak business and consumer confidence, political and economic instability, exacerbated by Brexit uncertainty.
The Australian economy remains depressed with challenges including, restrictive regulatory lending conditions currently facing consumers, slow wages growth and extreme environmental factors. The economy is negatively affected by the trade war tensions between the United States of America and China, as China is their dominant trading partner. The Australian automotive industry remains competitive, with new vehicle sales down 7% for the six months to December 2019 compared to 2018.
The global automotive sector is going through a period of unprecedented change, with declining volumes, new technologies and business models, demanding consumer expectations and increased competition. The industry is experiencing a dramatic shift in the way vehicles are owned, powered and driven, as well as in the way they are manufactured. In response to disruption, many OEMs are building strategies around key areas of change, namely, connectivity, autonomous driving, sharing and electrification/hybrids. We remain focused on keeping abreast of these changes and aligning with customer needs and expectations.
Performance

The results for the period reflect strong strategic and operational progress, based on a resilient financial performance in a challenging environment. We are pleased with the stable performance our diversified offering provides, given the uncertainties in the markets in which we operate.
Revenue improved by 7% mainly due to the increased revenue in the Retail and Rental and Aftermarket Parts business segments of 7% and 5% respectively. Higher vehicle unit volumes of 2% resulting from increased pre-owned vehicle sales, higher revenue generated from the rendering of services, an increase in selling prices and the bolt-on acquisitions of Ford and DAF dealerships (UK) improved revenue. Revenue growth excluding acquisitions was 2%.
Operating profit remained stable. Gross margins have been under pressure due to the competitive environment. Operating expenses (excluding depreciation) decreased by 6%. The decline in operating expenses is a result of cost containment and a reduction in operating lease charges as a result of IFRS 16. Excluding the effects of IFRS 16 operating expenses would have decreased by 1%. Costs have been well contained over the last three years, adjusting to our changing economic environment.
The operating margin of 4,4% is slightly lower than the prior period 4,7%, impacted by the gross profit decline of 1%.
The profit before tax is in line with the prior period while attributable income has improved by 3%. This is mainly due to the lower income tax expense which is primarily as a result of the once-off prior year non-deductible cost of shares issued to the BEE partner, Ukhamba, at a discount, which does not qualify for a tax deduction.
A full reconciliation of earnings to headline earnings is provided in the financial overview section.
An interim dividend of 240 cents per ordinary share (2018: 240 cents) has been declared. This is in line with our guideline payout ratio of 45% of headline earnings per share.
The statement of financial position is detailed in the financial overview section.
Ratio analysis is provided excluding the impact of IFRS 16 to ensure comparability to prior years and is in line with covenant methodology used by our debt providers.
Net debt to EBITDA (excluding IFRS 16) is 1,8 times (2018: 1,5 times) and remains within covenant levels of 3,0 times as set by debt providers.
Return on invested capital (excluding IFRS 16) declined to 12,6% (2018: 14,3%) mainly due to higher invested capital to fund working capital and vehicles for hire. Weighted average cost of capital (excluding IFRS 16) marginally improved to 10,3% (2018: 10,8%) primarily due to the increase in debt.
We have not provided separate return on invested capital, weighted average cost of capital and net debt to equity ratios for each business segment as the business segments in the Group operate in an integrated manner, to optimise client offerings and market penetration with numerous cross-selling initiatives across the automotive value chain.
Motus generated R1 121 million (2018: R382 million) cash from operating activities (before capital expenditure) due to lower cash utilised in working capital.
Segment overview
A diversified business in the automotive industry

- Exclusive South African Importer of Hyundai, Kia, Renault and Mitsubishi
- Exclusive distribution rights for Nissan in four East African countries
- Operates in South Africa and neighbouring countries
- >80 000 vehicles imported annually
- 15,2% market share in South Africa
- Car parc ~1,1 million vehicles

- Annually retail > 130 000 new vehicles and >83 000 pre-owned vehicles
- South Africa
- Represents 22 OEMs: 321 dealerships
- 20,1% retail market share
- Car rental (Europcar and Tempest): 117 outlets in Southern Africa
- ~25% rental market share
- United Kingdom
- 90 commercial dealerships
- 29 passenger dealerships
- Australia
- 28 passenger dealerships

- Developer and distributor of innovative vehicle-related financial products and services to >730 000 clients
- Manager and administrator of service, maintenance and warranty plans
- Sales agent and administrator of insurance-related products
- Provider of fleet management services
- Manages the innovation hub for the Group

- Distributor, wholesaler and retailer of accessories and parts for out-of-warranty vehicles
- Operates in Southern Africa and South East Asia
- 797 retail stores (72 owned stores)
- Supported by distribution centres in South Africa, Taiwan and China
- Franchise base comprises:
- Resellers (Midas and Alert Engine Parts)
- Specialised workshops

21%
of Group revenue
22%
of Group operating profit
Operating margin
4,2%

70%
of Group revenue
40%
of Group operating profit
Operating margin
2,3%

2%
of Group revenue
25%
of Group operating profit
Operating margin
42,9%

7%
of Group revenue
13%
of Group operating profit
Operating margin
7,2%

OVERVIEW
The Import and Distribution segment provides a differentiated value proposition to the dealership network enhancing the revenue and profits of the entire automotive value chain. We distribute vehicles and parts to our dealership network and government, and also supply to Europcar and Tempest (Motus rental brands) and other independent car rental companies. Our market share in South Africa at December 2019 is 15,2% (December 2018: 14,6%).

FINANCIAL PERFORMANCE | HY1 2020 | HY1 2019 | % change on HY1 2019 |
HY2 2019 | % change on HY2 2019 |
|||||
Revenue (Rm) | 10 158 | 9,753 | 4 | 9 196 | 10 | |||||
---|---|---|---|---|---|---|---|---|---|---|
Operating profit (Rm) | 430 | 388 | 11 | 422 | 2 | |||||
Operating margin (%) | 4,2 | 4,0 | 4,6 |
Revenue improved by 4% mainly attributable to price increases and the sales volume improvement of 7% resulting from new (mainly entry-level) model launches.
Operating profit increased by 11% for the period primarily due increased volumes, favourable forward exchange rates and cost containment.
All importers have forward cover at average rates of R14,71 to the US Dollar and R16,43 to the Euro. Hyundai and Kia are covered to September 2020 and Renault payments are covered to July 2020. All outstanding Mitsubishi commitments are covered.
We remain committed to the distribution arrangements in East Africa, albeit relatively small in scale.

OVERVIEW
We retail vehicles through dealerships based primarily in South Africa, with a selected presence in the UK and Australia. Car rental operates through Europcar and Tempest brands. The Retail and Rental segment’s unrivalled scale and footprint of strategically located dealerships, largely in growing urban areas, underpins its leading market share.

FINANCIAL PERFORMANCE | HY1 2020 | HY1 2019 | % change on HY1 2019 |
HY2 2019 | % change on HY2 2019 |
|||||
Revenue (Rm) | 34 265 | 32 171 | 7 | 32 870 | 4 | |||||
---|---|---|---|---|---|---|---|---|---|---|
Operating profit (Rm) | 801 | 816 | (2) | 762 | 5 | |||||
Operating margin (%) | 2,3 | 2,5 | 2,3 |
South Africa
We represent 22 OEMs through 321 dealerships. The retail market share for the South African operation is 20,1% compared to 19,3% in December 2018.
United Kingdom
We are based mainly in provincial areas with the majority of our dealerships being commercial vehicles. Further selective expansion in the UK will be driven by the introduction of additional brands or locations in areas close to existing dealerships via bolt-on acquisitions.
Australia
We have passenger dealerships located in New South Wales and Victoria. Further selective expansion in the Australian market will be driven by the introduction of additional brands or locations in areas close to existing dealerships via bolt-on acquisitions. We remain focused on growing our provincial town footprint outside of large metropolitan areas.
The Retail and Rental segment revenue improved by 7% despite the market decline in the geographies in which we operate. The increase is primarily due to acquisitions in the UK (DAF and Ford dealerships) and higher revenue generated from rendering of services and pre-owned vehicles and the Importer brand dealers due to newly launched products.
The Retail and Rental segment operating profit declined by 2% mainly due to the pressure on premium brands in South Africa and lower margins realised on entry level vehicles, coupled with the decline in performance in Australia. The UK operations reported an overall improved performance.

The South African Retail and Rental operating profit decreased by 2% from the prior period primarily due to market contraction affecting consumer affordability, the reduction in profitability of premium branded vehicle sales and the decline in car rental operating profit, offset by cost containment. The South African Retail and Rental operating profit was positively impacted by the new model launches in the Importer dealers.
Car rental revenue improved by 4% in a competitive environment. Operating profit declined mainly attributable to price competitiveness and the cost of vehicles, partially offset by the improved utilisation rate of 72% and fleet mix. Management remains focused on reducing variable costs.
UK revenue increased by 15% attributable to acquisitions and strong performance in the DAF commercial business. The turnaround in the Mercedes commercial operations had a positive effect on revenue and operating profit, however, work is still required to improve performance in these operations. The UK passenger dealerships have reported a decline in performance largely related to the contraction in the UK market and the limited brand representation.
The revenue from the Australia operations reduced by 5%, largely impacted by the depressed Australian vehicle market and certain underperforming brands. Optimisation of the footprint into provincial areas will present an opportunity for growth.

OVERVIEW
Innovation and unlocking customer potential within existing and new channels represents a growth and profit opportunity for the business. We have invested in technology to leverage consumer data, enabling us to offer personalised services aimed at enhancing the customer experience and improving customer retention.

This segment complements and leverages the automotive value chain, providing high margin annuity earnings and strong cash flows. Our ability to analyse proprietary data enables the accurate pricing of our offerings, profiling for the fleet business and management of claims.
Through our leading service, maintenance and warranty plans, we unlock revenue for the Import and Distribution and Retail and Rental businesses by bringing customers back to its dealerships.
FINANCIAL PERFORMANCE | HY1 2020 | HY1 2019 | % change on HY1 2019 |
HY2 2019 | % change on HY2 2019 |
|||||
Revenue (Rm) | 1 126 | 1 138 | (1) | 1 034 | 9 | |||||
---|---|---|---|---|---|---|---|---|---|---|
Operating profit (Rm) | 483 | 482 | – | 455 | 6 | |||||
Operating margin (%)* | 42,9 | 42,4 | 44,0 |
* Operating margin includes profit streams without associated revenue.
Revenue declined by 1% and operating profit remained static mainly due to the reduced rental income resulting from fewer Importer vehicles being rented to car rental companies, on average for the six months, and higher impairments in the bank joint ventures.
Profitability was enhanced by the increased penetration of service plans in entry level vehicles and from digital marketing of value-added products.
We continue to drive development of the fleet management business and building synergies within the vehicle retail businesses.

OVERVIEW
The Aftermarket Parts business’ large national and growing footprint enables us to leverage buying power to distribute and sell competitively priced products to a continually growing car parc of vehicles.

Expanding into other developing markets provides an opportunity for the business. Increased participation in this segment will include vertical integration in order to eliminate intermediaries in the wholesale supply chain.
Arco in Taiwan expands on this strategy and will ensure procurement at competitive prices. To support this strategy, we have recently set up a distribution centre in Shanghai, China to procure and distribute to South Africa and other developing markets.
FINANCIAL PERFORMANCE | HY1 2020 | HY1 2019 | % change on HY1 2019 |
HY2 2019 | % change on HY2 2019 |
|||||
Revenue (Rm) | 3 433 | 3 259 | 5 | 3 183 | 8 | |||||
---|---|---|---|---|---|---|---|---|---|---|
Operating profit (Rm) | 247 | 246 | – | 250 | (1) | |||||
Operating margin (%) | 7,2 | 7,5 | 7,9 |
Revenue increased by 5% mainly due to improved sales volumes resulting from wider brand representation and acquisitions included for six months.
Operating profit remained stable due to the shift by the consumers from higher priced premium products to more affordable products in South Africa, impacting operating income in South Africa. The Shanghai Distribution Centre is not fully operational at this stage and once-off set up expenses have been absorbed.
Financial overview
Group profit or loss (extract)
HY1 2020 Rm |
HY1 2019 Rm |
% change |
|||
Revenue | 41 954 | 39 379 | 7 | ||
---|---|---|---|---|---|
Operating profit | 1 831 | 1 838 | – | ||
Profit on sale of properties, net of impairments* | – | 25 | (100) | ||
Net foreign exchange losses | (46) | (42) | 10 | ||
Net finance costs | (497) | (363) | 37 | ||
Other | (45) | (56) | (20) | ||
Issue of shares at a discount and modification of share appreciation rights | – | (160) | |||
Profit before tax | 1 243 | 1 242 | – | ||
Income tax expense | (344) | (363) | |||
Profit for the period | 899 | 879 | 2 | ||
Attributable to non-controlling interests | (4) | (8) | |||
Attributable to shareholders of Motus Holdings | 895 | 871 | 3 | ||
Operating profit (%) | 4,4 | 4,7 | |||
Effective tax rate (%) | 28,0 | 29,4 | |||
Return on invested capital (%) | 12,1 | 14,3 | |||
Weighted average cost of capital (%) | 10,1 | 10,8 | |||
Return on invested capital (excluding IFRS 16) (%) | 12,6 | 14,3 | |||
Weighted average cost of capital (excluding IFRS 16) (%) | 10,3 | 10,8 |
* In the prior year, profit on sale of properties, net of impairments was included in other. It has been presented separately for disclosure enhancement purposes.
Revenue improved by 7% mainly due to the increased revenue in the Retail and Rental and Aftermarket Parts business segments of 7% and 5% respectively. Higher vehicle unit volumes, an increase in the selling prices and the bolt-on acquisitions of Ford and DAF dealerships (United Kingdom) improved revenue.
The revenue contribution from both the sale of pre-owned vehicles and rendering of services increased by 9%. The sale of parts also contributed positively.
Operating profit remained stable
Operating profit remained stable due to the decrease in operating expenses of 6% offset by lower margin realisation resulting from the shift to entry level vehicles and the depreciation increase due to the IFRS 16 adjustment and higher vehicles for hire.
The decrease in operating expenses is as a result of cost containment and the effects of IFRS 16 that reduce the operating lease charge. Excluding the effects of IFRS 16 operating expenses would have decreased by 1%. Costs have been well contained over the last three years.
Depreciation increased by 51%
Excluding IFRS 16 depreciation increased by 11%
Depreciation increased primarily due to the impact of the IFRS 16 adjustment and an increase in vehicles for hire in the Import and Distribution and Retail and Rental segments.
Net finance costs increased by 37%
Excluding IFRS 16 finance costs are up 17%
The increase is mainly as a result of the application of IFRS 16, higher average working capital levels and the increased car rental fleet in the car rental business.
Foreign currency loss increased by R4 million
Foreign exchange losses relate only to items that do not qualify for hedge accounting. The current period losses are as a result of the uncorrelated movement between the fair value of the creditors and the corresponding hedges. The Importers are covered in terms of the Group policy and currently at favourable exchange rates.
Effective tax rate decreased by 1%
The effective tax rate declined primarily due to the once-off prior year non-deductible cost of shares issued to the BEE partner, Ukhamba, at a discount, which does not qualify for a tax deduction.
Earnings and headline earnings per share
HY1 2020 Rm |
Restated HY 1 20191 Rm |
% change |
|||
Earnings | 895 | 871 | 3 | ||
---|---|---|---|---|---|
Profit on disposal of assets | (15) | (12) | 25 | ||
Impairment of goodwill and other assets | 80 | 85 | (6) | ||
Remeasurements included in share of results of associates | 6 | – | >100 | ||
Tax and non-controlling interests | 1 | 3 | (67) | ||
Headline earnings | 967 | 947 | 2 | ||
Weighted average number of ordinary shares | 187 | 200 | (7) | ||
Basic earnings per share (cents) | 479 | 436 | 10 | ||
Basic headline earnings per share (cents) | 517 | 474 | 9 |
1 | The headline earnings and headline earnings per share in the prior period has been restated to include the derecognition of loans on deregistration of subsidiaries (R36 million), this is to align the treatment with that of the annual financial statements as at 30 June 2019. |
Financial position
31 December 2019 Rm |
31 December 2018 Rm |
30 June 2019 Rm |
December vs December % change |
December vs June % change |
|||
ASSETS | |||||||
Goodwill and intangible assets | 1 370 | 1 272 | 1 273 | 8 | 8 | ||
Property, plant and equipment | 7 498 | 7 034 | 7 198 | 7 | 4 | ||
Right-of-use assets | 1 896 | – | – | >100 | >100 | ||
Investments in associates and joint ventures | 251 | 281 | 258 | (11) | (3) | ||
Vehicles for hire | 4 763 | 4 067 | 3 385 | 17 | 41 | ||
Investments and other financial assets | 460 | 607 | 509 | (24) | (10) | ||
Finance lease receivables | 110 | – | – | >100 | >100 | ||
Net working capital (note 1) | 8 453 | 8 415 | 7 580 | – | 12 | ||
Other assets | 1 355 | 1 080 | 1 178 | 25 | 15 | ||
Assets classified as held for sale | 161 | 208 | 182 | (23) | (12) | ||
Core debt | (6 860) | (6 126) | (4 777) | 12 | 44 | ||
Floorplans from financial institutions | (1 939) | (1 564) | (1 841) | 24 | 5 | ||
Lease liabilities | (2 352) | – | – | >100 | >100 | ||
Contract liabilities | (2 876) | (2 752) | (2 818) | 5 | 2 | ||
Other liabilities | (331) | (372) | (270) | (11) | 23 | ||
Liabilities held for sale | (18) | (20) | (19) | (10) | (5) | ||
Total shareholders’ equity | 11 941 | 12 130 | 11 838 | (2) | 1 | ||
Total assets | 42 375 | 37 202 | 38 872 | 14 | 9 | ||
Total liabilities | (30 434) | (25 072) | (27 034) | 21 | 13 |
Note 1: Net working capital includes R5 202 million (December 2018: R4 988 million, June 2019: R5 619 million) floorplan creditors.
FACTORS IMPACTING THE FINANCIAL POSITION AT 31 DECEMBER 2019 COMPARED TO 30 JUNE 2019
Goodwill and intangible assets
Increased mainly due to the acquisition of the DAF dealerships in the UK (R139 million) in July 2019. Enhanced by currency adjustments, offset by a decrease in intangibles due to their amortisation and the impairment of goodwill.
Goodwill amounting to R60 million relating to the Mercedes operations in the UK was impaired. This is due to diesel taxis no longer being sold and higher anticipated duties on imported inventory when Brexit is finalised.
Property, plant and equipment
Increased as a result of the acquisition of dealerships in the UK.
Vehicles for hire
Increased primarily due to the increase in vehicles for hire in the Retail and Rental segment. This was due to the change from leased vehicles to owned vehicles and the cyclical car rental up-fleet, recognised on the statement of financial position in the car rental business.
Importer and Financial Services vehicles for hire increased mainly as a result of increased sales to car rental companies. At a Group level, the Importer’s vehicles for hire are eliminated against the buy-back creditors.
Investments and other financial assets
Declined in line with changes to our cell captive arrangements.
Net working capital
Net working capital increased since June 2019 mainly due to:
- the Aftermarket Parts segment increased working capital as a result of the inclusion of the Chinese distribution warehouse, which will ultimately improve inventory availability and reduce inventory holding in the South African business;
- acquisitions in the Retail and Rental segment increased inventory which was partially offset by floorplan financing; and
- offset by the reduced working capital in the Import and Distribution segment, as a result of additional vehicle sales to car rental companies.
Assets classified as held for sale
The current period assets held for sale relate to the non-strategic properties identified for sale, mainly retail properties in South Africa and Australia.
Core debt (excluding floorplan and IFRS 16 debt)
Increased primarily due to the higher debt in the Retail and Rental segment which is attributable to the increase in vehicles for hire resulting from the cyclical car rental up-fleet and the change from the leasing of vehicles to owning vehicles. The debt was further impacted by increased working capital requirements as a result of acquisitions.
Floorplans from financial institutions
Floorplan debt increased due to the acquisition of the additional dealerships in the UK.
Contract liabilities
Relate mainly to service and maintenance plans.
Shareholders’ equity
Was enhanced by attributable profits, offset by:
- repurchase and cancellation of shares during the period totalling R71 million;
- the IFRS 16 adoption resulting in an adjustment of R178 million;
- dividend paid of R477 million; and
- hedging reserve adjustment of R154 million.
Cash flow
31 December 2019 Rm |
31 December 2018 Rm |
|||
Cash generated from operations before movements in net working capital | 2 712 | 2 398 | ||
---|---|---|---|---|
Movements in net working capital | (1 011) | (1 572) | ||
Cash generated by operations before interest, tax paid and capital expenditure on vehicles for hire | 1 701 | 826 | ||
Finance costs paid | (532) | (394) | ||
Finance income received | 25 | 31 | ||
Dividend income | 263 | 299 | ||
Tax paid | (336) | (380) | ||
Cash generated by operations before capital expenditure on vehicles for hire | 1 121 | 382 | ||
Net capital expenditure – vehicles for hire | (1 922) | (613) | ||
Cash utilised by operations | (801) | (231) | ||
Net cash outflow on the acquisitions and disposals of businesses | (259) | (359) | ||
Capital expenditure (excluding vehicles for hire) | (170) | (229) | ||
Net movements in investments in associates | 5 | 12 | ||
Net movements in investments and loans | (105) | (77) | ||
Cash received on finance lease receivables | 23 | – | ||
Cash utilised in operating and investing activities | (1 307) | (884) | ||
Shares repurchased | (71) | (165) | ||
Change in non-controlling interests | – | (28) | ||
Dividends paid | (477) | (604) | ||
Increase in net debt (excludes currency adjustments) | (1 855) | (1 681) |
The Group generated cash of R1 121 million (before capital expenditure) mainly due to lower cash utilised in working capital.
The cash outflow on vehicles for hire increased due to the change from leased vehicles to owned vehicles and the cyclical car rental up-fleet.
Cash outflow on acquisition of businesses was due to the newly acquired operations in the Retail and Rental and Aftermarket Parts business segments.
Liquidity
The liquidity position is strong with R5,3 billion unutilised banking facilities. Excluding lease liabilities, 60% of the Group debt is long term in nature and 29% of the debt is at fixed rates. Excluding floorplans which can be seen as part of the working capital cycle, 75% of the Group debt is long term in nature and 36% of the debt is at fixed rates.
Dividend
An interim dividend of 240 (2018: 240) cents per ordinary share has been declared. This is in line with our guideline payout ratio of 45% of headline earnings per share.
Subsequent events
In February 2020, the Group acquired eight passenger dealerships in Ballarat, Australia (provincial city in Victoria) for between R380 million and R420 million, including goodwill. Due to the recent nature of this acquisition, the amounts are still provisional.
Board changes
There have been no changes to the board of directors.
Strategy
We remain well positioned to maintain our leading automotive position in South Africa and grow in selected international markets. We have a strategic focus on deepening our competitiveness and relevance across the automotive value chain, by driving organic growth through optimisation and innovation, and with selective bolt-on acquisitions. We aim to deliver stable profit margins and cash flows while maintaining a reliable dividend pay-out through the cycle.
Prospects
The results for the period reflect strong strategic and operational progress based on a resilient financial performance in a challenging environment. We are pleased with the stable performance given the uncertainties in the markets in which we operate.
The negative impact of the Coronavirus on a number of the OEMs production and supply of vehicles (as their parts supply are interrupted), the Aftermarket Parts business and the global economy is unknown at this stage. This could adversely impact the local and global economies in the short term. Due to the weak macro and consumer environment that appears to be deteriorating, we are cautious about expectations for the short and medium term.
Despite these challenges, we remain committed to delivering stable operating and financial results for the year to June 2020.
We thank all shareholders, the board of directors, management and stakeholders for their support.
OS Arbee
Chief Executive Officer
OJ Janse van Rensburg
Chief Financial Officer
25 February 2020
The forecast and interim financial information herein has not been reviewed or reported on by Motus’ auditors.
Dividend declaration
Declaration of interim ordinary dividends
for the six months ended December 2019
Notice is hereby given that a gross interim ordinary dividend in the amount of 240,00 cents per ordinary share has been declared by the board of Motus, payable to the holders of the 195 513 720 ordinary shares. The dividend will be paid out of reserves.
The ordinary dividend will be subject to a local dividend tax rate of 20%. The net ordinary dividend, to those shareholders who are not exempt from paying dividend tax, is therefore 192,00 cents per ordinary share.
The company has determined the following salient dates for the payment of the ordinary dividend:
2020 | |
Last day for ordinary shares to trade cum ordinary dividend | Tuesday, 24 March |
Ordinary shares commence trading ex-ordinary dividend | Wednesday, 25 March |
Record date | Friday, 27 March |
Payment date | Monday, 30 March |
The company’s income tax number is 983 671 2167.
Share certificates may not be dematerialised/rematerialised between Wednesday, 25 March 2020 and Friday, 27 March 2020, both days inclusive.
On Monday, 30 March 2020, amounts due in respect of the ordinary dividend will be electronically transferred to the bank accounts of certificated shareholders that utilise this facility. In respect of those who do not, cheques dated 30 March 2020 will be posted on or about that date. Shareholders who have dematerialised their shares will also have their accounts, held at their CSDP or broker, credited on Monday, 30 March 2020.
On behalf of the board
JK Jefferies
Company Secretary
25 February 2020