WeBuyCars Holdings’ share price increased 4.2% to R19.99 on Tuesday after it forecast a 24% to 29% rise in interim core headline earnings to between R394 million and R410m.
The share price gain was strong considering the JSE’s All Share Index fell 0.5% on the day.
“WeBuyCars has resumed its core earnings growth trajectory during the six months ended 31 March 2024. The growth was driven by higher volumes, higher average selling prices, improved margins, and cost efficiencies as a result of economies of scale,” directors said in a trading statement Tuesday.
Basic earnings however were expected to between -R66m to -R73km, following a decrease of more than 100%. Headline earnings were forecast to decrease by more than 100% to between -R66m to -R73m.
Core headline earnings excludes gains/losses, costs and adjustments relating to acquisitions and disposals of investments; once-off transaction costs attributable to corporate activity; and non-cash accounting adjustments to the call option derivative asset relating to non-controlling interests.
Another 40 000 000 shares were issued on April 11, 2024, increasing the number of shares in issue post the listing to 417 181 120.
Basic earnings per share and headline earnings a share were impacted by once-off transaction costs and R426.5m non-cash call option derivative accounting adjustments: including once-off professional, legal and JSE listing fees of R45m. The interim results are expected to be released on May 13, 2024.
BUSINESS REPORT