Motus Holdings reports significant turnaround in second half performance

MOTUS Holdings saw a significant turnaround in the second half of its financial year, with better sales, profit margin recovery, and improved operational efficiencies, following focused management actions after a muted first half.

- EDWARD WEST

Trading for the automotive group in the first half had been marked by economic uncertainty across the group's operating regions, high interest rates, and intensified competition.

The results appeared to be favourably received by investors, as the share price rose 3.87% to R108.43 on the JSE Tuesday morning, at a time when the JSE All-Share Index was down 0.53%.

"As we continue to navigate the structural shifts in the automotive industry, our strategies, underpinned by our operational agility, mitigate against cyclicality and position Motus well for sustainable, profitable growth," said CEO Ockert Janse van Rensburg.

The non-vehicle contribution to earnings before interest, tax, depreciation, and amortisation (EBITDA) came to 55%, exceeding its 50% target for the year to June 30, as the group successfully focused on better income diversification.

Thirty-five percent of EBITDA was generated from outside South Africa, reflecting the growing contribution of the group's operations in the UK, Australia, Asia, and other African markets.