WeBuyCars, a subsidiary of Transaction Capital Limited, has released a robust trading update for the four months ending on 31 January 2024, amidst plans for its separate listing on the Johannesburg Stock Exchange (JSE).
WeBuyCars showcased impressive financial performance during this period, with significant growth across key metrics:
| Financial Metrics | Four Months Ended 31 Jan 2024 | Four Months Ended 31 Jan 2023 | Movement |
|---|---|---|---|
| Revenue (Rm) | 7 636 | 6 574 | 16% |
| Core Earnings (Rm) | 267 | 223 | 20% |
| Core Cost-to-Income Ratio (%) | 61.5 | 60.4 | |
| Debt-to-Equity Ratio (%) | 32.4 | 47.5 | |
| Cash from Operating Activities (Rm) | 402 | 256 | 57% |
| Net Interest-Bearing Liabilities (Rm) | 1 034 | 1 392 | -26% |
The company witnessed a substantial increase in revenue, with core earnings growing by 20% compared to the same period last year. Additionally, cash generated from operating activities surged by 57%, indicating strong operational efficiency.
Operational metrics also showed promising growth:
In a challenging macroeconomic environment characterized by high unemployment and elevated interest rates, affordability remains a significant concern for consumers. This has driven demand for more affordable used vehicles, positioning WeBuyCars well to cater to this segment of the market.
WeBuyCars’ strong performance comes amid Transaction Capital’s announcement of its intention to unbundle WeBuyCars and list it separately on the JSE. The move is aimed at unlocking value for shareholders and capitalizing on the company’s growth potential.
WeBuyCars’ impressive financial and operational performance underscores its resilience and market position in the face of challenging economic conditions. As the company gears up for its separate listing on the JSE, investors are optimistic about its future prospects in the dynamic South African automotive market.
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