In its interim results for 2013, the investment holdings company reported that revenue increased from 4.3 billion rand in 2012 to a restated 5 billion rand in 2013.
“The directors are pleased with the results which have been achieved during a relatively tough trading period. A number of the comparative figures have been restated following the change in accounting policies. However, on a comparable basis, the group achieved a 17 per cent increase in revenue, which translated into a 10 per cent improvement in gross profit,” Combined Motor Holdings (CMH) said.
[DATA CMH:CMH]’s gross profit increased from 625 million rand in 2012 to 689 million rand in 2013 and its operating profit increased from 80 million rand to 139 million rand.
“The car hire segment enjoyed continued success. The operating profit margin improved from 7.3 per cent to 9.3 per cent, largely as the result of higher fleet utilisation rates and a hike in the average daily rental returns,” CMH said.
“In the face of tough competition, First Car Rental was awarded two large tender contracts, and four new branches were opened to provide customer service in outlying areas.”
Profit before taxation increased from 69 million rand in 2012 to 120 million rand in 2013 while headline earnings increased from 60 million rand to 86 million rand.
“The significantly weaker rand and the prolonged debilitating strikes in the motor and allied industries have placed a dampener on consumer confidence and economic activity levels. On the positive side, continued stable and low interest rates, together with extremely competitive offerings, especially in the entry-level segment, are expected to retard a decline in demand,” said CMH.
“The restructured marine and leisure division will benefit from the summer months which fall in the second half of the financial year, and the group’s workshops, parts departments and financial services are expected to continue the steady earnings they have historically achieved.”