Motus loses some market share and sees debt spike, but is pleased with operating profit growth

SA's largest vehicle dealer Motus says while its debt has spiked and its lost market share in passenger vehicles in the country, base effects were at play, and it's pleased with a double-digit rise in revenue and operating profit in a year characterised by much tougher competition.

Group revenue rose 16% to R106.3 billion to end June but headline earnings slipped 3% to R3.41 billion, Motus reported on Wednesday, with net finance costs surging about 172% to R1.35 billion. Its net debt also surged after acquisitions and working capital inflows into its inventory.

New vehicles retailed increased by 10.4% for the year to end June, to about 541 000 vehicles, according to statistics from the National Association of Automobile Manufacturers of SA (Naamsa), but Motus reported a 9% fall to 95 418. Its market share for passenger vehicles fell about three percentage points to just over 21%, with all its major brands seeing declines despite a continued trend of South Africans shying away from luxury vehicles in a tough economy.