WeBuyCars sees earnings boost ahead of JSE listing
WeBuyCars has seen a significant growth in revenue amid an increase in buying and selling of stock.
Transaction Capital is listing WeBuyCars on the JSE to unlock value for its shareholders after SA Taxi’s poor performance crashed the group’s share price.
Ahead of its listing on Thursday, 11 April 2024, Transaction Capital published a business trading update for five months ending 29 February 2024 for WeBuyCars.
In February alone, WeBuyCars purchased 14,354 vehicles and sold 13,132 cars, with the sales per-day volumes in line with January and continuing into March.
Revenue for the month was R1 855 million, and core earnings were R66 million.
Core earnings grew by 25% in the first five months of the financial year to R333 million, with revenue also growing by 16% to R9,491 million.
| Financials | 5MFY23 | 5MFY24 | Change |
| Revenue (Rm) | 8 148 | 9 491 | +16% |
| Core earnings (Rm) | 266 | 333 | +25% |
| Core cost-to-income ratio (%) | 58.5 | 64.0 | – |
| Cash generated from operating activities (Rm) | 401 | 305 | -24% |
| Operational | – | – | – |
| Vehicles purchased (Units) | 59 077 | 68 209 | +15% |
| Vehicles sold (Units) | 58 823 | 66 276 | +13% |
| Total e-commerce sales (Units) | 12 151 | 17 695 | +46% |
| Vehicle parking bays (Units) | 9 895 | 10 444 | +6% |
| Buying pods (Units) | 59 | 74 | +25% |
| Inventory (Rm) | 1 900 | 2 135 | +12% |
“WeBuyCars’ balance sheet continues to be conservatively geared with net debt of R1 154 million consisting primarily of mortgage loans of R733 million on several vehicle supermarkets, and working capital facilities of R421 million to fund inventory,” Transaction Capital said.
“Inventory levels have increased to R2 135 million due to increased purchasing activity.
“The decrease in cash generated from operating activities relative to the prior corresponding period, and marginal increase in inventory days, is primarily due to the increase in inventory (more vehicles have been purchased relative to sales).”
In a separate SENS announcement, Transaction Capital also announced the opening of an offer to qualifying investors to subscribe for and/or purchase WeBuyCars shares as part of the pre-listing capital raise.
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