Combined Motor Holdings faces challenges with a 26.2% profit decline

COMBINED Motor Holdings' (CMH) headline earnings a share fell 25.6% in the year to February 28 as vehicle affordability continues to wane among South African consumers.

- EDWARD WEST

The dividend declared fell 22.3% to 171 cents a share from 220 cents last year. Revenue increased 3.2% to R13.25 billion. Total profit fell 26.2% to R301.49 million, marking the second year in a row of decline.

CMH operates in the motor retail and distribution, car hire, and financial services segments in South Africa, employing 2,666 people. It has 43 retail motor dealerships representing 29 brands in Gauteng, KwaZulu-Natal, and the Western Cape. Its Mandarin Parts Distributors business imports aftermarket vehicle parts.

CEO Jebb McIntosh said in the results that while a mild resurgence in new vehicle sales in the last quarter was encouraging, it was insufficient to rescue the market and lift it to the 2019 pre-Covid level.