Invicta Holdings – Kian Ann Deal
Key message: An earnings enhancing transaction through Kian Ann increases exposure to two subsidiaries KKB and MIH. Net proceeds from the transaction should reduce debt levels further.
Super Group – FY21 Trading Update
Key message: Weaker than our expectations – margins have dropped in 2H to approx. 4.9% from 6.1% in 1H. The Trading Update does not give enough detail to reconcile the difference, although the tone is overall positive.
Motus Holdings – FY21 Trading Update
Key message: We adjust our FY21 forecasts in line with the trading update but continue to believe that Motus will be trading off a high base into FY22 and may struggle to replicate earnings due to the lower availability of used cars coming off internal rental fleets. Release of provisions may also have boosted FY21 results.
Auto Anemometer
Key message: Comparative months are now Covid-impacted, and YoY comparisons are not consistent. We will start to compare current months with the comparative from two years ago to get a real sense of the state of new car sales.
Barloworld – 1H FY21 Results
Key message: Poor balance sheet management has long bedevilled returns. However, the focus on improving returns is now evident in the working capital management. Through fixing (Equipment) and disposals (Automotive), Barloworld looks poised to achieve target returns.
Auto Anemometer
Comparative months are now Covid-impacted, and YoY comparisons are not consistent. We will start to compare current months with the comparative from two years ago to get a real sense of the state of new car sales.
Right-to-Repair Bill
Key message: The Competition Commission released the final Guidelines for Competition in the South African Automotive Aftermarket (also referred to as the Right-to-Repair Bill) on 19 December 2020. The Guidelines take effect on 1 July 2021.
Motus Holdings – Following the Cars
Key message: We have done an extensive update to our model to account for improved segmental disclosure and the significant Covid impact on the business. Motus has in general performed significantly better than our expectations, but we highlight some challenges to further growth.
Barloworld – Trading Update
Key message: Margins are better than expected, countering relatively weak revenue growth.
Auto Anemometer
Key message: Comparative months are now Covid-impacted, and YoY comparisons are not consistent. We will start to compare current months with the comparative from two years ago to get a real sense of the state of new car sales.