Motus delivers record dividends

Listed vehicle group Motus has reported driving double-digit growth across multiple areas of its business, signaling promising indicators for future growth. Headline earnings per share increased by just over 50%, while profits climbed by more than 20%. Osman Arbee, the Chief Executive Officer of Motus, attributes this success to the company's integrated business model and the resilience of the South African economy and consumers during challenging times. Arbee highlighted the four foundations of Motus' business model, consisting of importing, distribution, retail, rental mobility solutions, and aftermarket parts. This integrated approach, coupled with agile management teams, resulted in excellent performance for the company in the previous financial year. Motus' ability to maintain strong margins amidst normal price inflation levels of 6-8% and a global shortage of cars has been instrumental in achieving outstanding results. The shortage of cars, partly exacerbated by semiconductor supply chain challenges, has led to favorable stock control and interest expense management for the company. The impact of COVID-19 on cost management practices also played a role in setting the stage for Motus' stellar financial performance. Looking ahead, Motus remains optimistic about future growth prospects despite global supply chain disruptions. Arbee anticipates a gradual improvement in production output, with a return to normal levels expected by mid-next year. The company plans to continue investing in its car rental business, reflecting the uptick in tourism and increased demand for mobility services. Additionally, Motus is banking on resilient businesses such as aftermarket parts and mobility solutions to drive revenue growth. The company foresees opportunities in serving government and corporate clients as they consider replacing aging vehicles. While inflation and rising interest rates remain key concerns, particularly in the financing aspect of Motus' business, Arbee expresses confidence in the company's ability to navigate these challenges. The majority of South African consumers purchase cars on credit, with a focus on managing monthly installments rather than the interest rate changes. As Motus looks to the future, its strategic investments in the car rental sector, aftermarket parts, and mobility solutions are poised to propel the company's growth trajectory. With a resilient consumer base and a diversified business model, Motus appears well-positioned to capitalize on emerging opportunities in the automotive industry. The company's focus on operational efficiencies, cost management, and adapting to market dynamics underscores its commitment to sustained growth and value creation for shareholders.