Motus Holdings Limited (MTH) Earnings Call Transcript & Summary

Good morning, and welcome, everyone, to the presentation for Motus today, privilege to have all of you here. Welcome all our nonexecutive directors as well, and we hope you enjoy the program of the day. We're going to kick off just a little bit talking about the environment, how we delivered on our strategy. Brenda, who will be joining me on stage will take us through the financial numbers. And then we'll just finish off with some key priorities and prospects and some time available for questions. So if you look at the operating environment in which we need to run our businesses, obviously, the world is in a funny place and it feels it never really gets to a new normal, but you just have to adapt to it. But if you look at the 3 environments in which we operate, very little GDP growth, but there's a lot else happening in those markets. If you look at South Africa, you can see very low growth rate, only 1%, United Kingdom sort of at 1% estimated for this year. And Australia, almost the out-licensing at 1.9%, which doesn't feel that great either. And I think if you look at Australia, you can see that a lot has happened around the fact that the inflation has actually started to pick up. And you can see the marginal growth that they've had in vehicle sales only being 2%. If we move over to United Kingdom, very tough market we're in at the moment. We've suddenly seen that you've had the seventh Prime Minister in 7 years. That doesn't bode well for a country normally. And you can see that the country as a whole is actually going through a lot of turmoil. Business confidence is slightly subdued, and that has certainly impacted us as well because of the commercial truck aspect we've got there. You can see there right at the bottom, commercial vehicle sales actually contracted in this last year. The one outlier, however, is that even in the U.K., new vehicle sales of passenger vehicles have actually increased. And there's also been the influx of Chinese brands in that market. But the real standout is actually South Africa, which is normally not the standard, if you're South Africa, you always think South Africa is a tough place to be in. But all of a sudden, you look at the economic environment you have to operate in here. And despite GDP being at a low rate, interest rates starting to increase, you see that vehicle sales has actually been extremely strong. And in the last year, it's gone up by 15%, which does seem a little bit of an outlier. Now there's lots of reasons for that. We have said we've had this rapid increase of the Chinese brands coming to South Africa. You certainly had the benefit of the lower interest rates, but also just the whole marketing around it, I think has actually been quite extraordinary. You normally had about 7 or maybe 10 brands marketed and spending marketing money, now there's 43. So all of a sudden, you do and see a lot more about it. That's all great to have that the economic environment, but you need to be very agile to actually make sure you take advantage of that. I think that's one thing that makes us can pride ourselves by being very agile. I think when times are tough, we get on with it. We actually change and pivot to where the new energy needs to be directed to. And also in this particular market, I think we've had to take certain steps and be very focused on our execution to make sure you take advantage of when the market is strong. We've increased our brand representation. You'll see more of that later in the slides as well. Still selective. I don't think we just want to be a badge collector. I think we want to back the right brands, but we certainly increased our brand representation in South Africa, the U.K. and Australia, you'll see that. I think also the partnerships we have within the OEMs, and it's probably even wider than just the OEMs is do not ever neglect the guys who actually got you here. And I think that is very important for us as well is we haven't dropped off any of the traditional brands. So where we had to accommodate new brands coming into the market, we still look after those traditional brands as well. So the likes of Toyota, Ford, et cetera, all of those brands still very important to us. And where we had to multi-franchise, we've done it in a structured way where it didn't disrupt even the traditional guys because if a market like this is growing, as you would have seen just on the previous slide, everyone grows. So yes, some grows faster than others, but you have to participate in the full spectrum to actually meet that overall market leadership position we've got. Obviously, meeting evolving customer needs. There's lots of new products. We've introduced new channels, but there's new products that we've introduced, new service offerings, specifically around aftermarket parts and mobility solutions. So that's quite important and also in our car rental space. Then, of course, the execution of this vehicle multi-strategy, multi-franchise strategy is actually quite difficult. I mean it sounds very simple if you have it on a piece of paper and saying, okay, let's just put 2 brands together, see what we do. But once again, to focus -- firstly, you have to get the OEM across the line, then do the layouts and what you do within the location like that. But lastly is also empowering your people to change this adapting landscape, very tough to do, and it takes a lot of hard work. But I think the way we've connected with our people in this last year certainly made the difference that we were able to get that right, and you'll see that coming through quite a lot. So how have we done? It's great standing here and then we say, true, so we must diversify and get the benefit. But I think this actually tells you what has happened. So our Chinese and Indian vehicle volumes have tripled. Now triple is a difficult word to explain, but actually, you can see that it's over 200% up. If you take all the volumes that we sold in the last year compared to this year, if you were selling 100, you're now selling 300. So it's actually quite an up there. We obviously had to not just focus on the new vehicles, we were still focused very much on to our pre-owned as well. So that focused execution I just spoke about also came through in pre-owned. And despite the market actually being down, you can see our pre-owned volumes grew by 5%. So we certainly -- you may ask how did we achieve that? And you have to rewind a little bit back to our strategies that we shared with you maybe a year ago where we introduced the valuation methodology we had within getWorth across the rest of our dealership network. I think that certainly played a part. But then once again, it had to do with people as well and the outlook you've had parameters to actually take advantage of a market where maybe the pre-owned is coming down because of the Chinese entrants. But if you've got a big dealership, you then get is new people arriving, customers arriving on your showroom floor and they do have trading. So don't lose the trading and make sure you actually take advantage on new and pre-owned at the same time. So very proud of what we've done in South Africa in that particular space. SA Retail was a tough one. We had tough conversations. I think 6 months ago, we were telling you how we have to really look after the mature brands, the brands under pressure, et cetera. Very proud to tell you that H2 is much better than H1, and it feels as if we're actually on the right track there. So the successful turnaround has certainly happened, and we're looking at the momentum we can take forward into the new year. Then you look at the launch of a product. Now it sounds very nice as well. Let's just bring in a new product and we're going to see if we can sell this thing. True. So we've now realized, again, it takes a bit of heavy lifting to actually get a product off the ground. But we're very proud to say here today and tell you, well, we've successfully relaunched the Tata brand. It's now -- the average is 600 units a month. But I can tell you in the last while, it's actually creeping up above 800. I saw the norms numbers yesterday of 850, I think. So you can see how we immediately were able to position it. It's already a top 15 brand in the country. I'm very proud of what the team did there with the help of the OEM. Now obviously, if you were able to do all of that, profit is always nice to talk about, cash is reality, okay? So you have to first show me the money to make sure we've really made this. And you can see that strong cash generation, ZAR 8 billion that actually got generated before we spend the money on working capital vehicles, et cetera. But all of that would actually help you to give a better return also to shareholders. And I'm sure the shareholders are going to be quite pleased to see that we've upped that dividend policy of ours to actually pay out now 40% of headline earnings per share. So the dividend year-on-year is up 29%, even though the HEPS is only at high teens. So how did we then deliver on the strategy of ours? I think we shared it with you in the past. We explained what we wanted to do, but you really need to get to the nuts and bolts of it. And the first bit is all around you've got a strong foundation. Now a strong foundation helps you, obviously in tough times because you're very resilient. But if the market is in your favor, you really have to then also make sure you take advantage of that, which I showed you on the previous slides already. But the integrated business model, something very unique to Motus, slightly different from our competitors where we play all the way from that importer, distribution, retail, rental, mobility solutions into the aftermarket parts to take advantage of the whole value chain. A diversified portfolio always helps you. I think in tough times, SA was at some really tough times a while ago. International had to bail you out. Even this last year, you can see international now trailing a little bit. I think the economies are tough. SA is doing a fantastic job. So that diversification across geographies, but also your different annuity income streams is certainly helping you. I think our market leadership has been really good. I mean, we've been able to maintain that one in 5 vehicle sales. But across the board, if you look at every one of those revenue streams, you will see that and every performance driver has got their own market leadership targets themselves. Cash generation, we already spoke about. You understand our diverse team. And I think the other business really helped us is we've really taken a new effort to make sure that we actually empower also our surrounding communities where we operate in. And we certainly have seen that reciprocal benefit as well, for instance, something in the aftermarket parts where we've gone into areas where previously underserved, so really helping us there. Obviously, you can't just stand still. I think the foundation is great, and you can almost be little bit complacent and say, everything is working. I think at Motus, we like to say that nothing is ever perfect and we need to see why do we need to change? Where do we need to transform? And be very deliberate on the areas where we want to transform. So I think the one I spoke about already is how we had to empower our people to deal with these new changes, this new landscape. I mean in a multi-franchise environment, we are used to selling one brand, making the money, customers were walking in next minute, it's completely changed. You have 3, 4 brands on the dealership. The DP has to have great new outlook on how he actually deals with it. I think the digital euro certainly also brought its own complexities. Complexity always land at almost at one pivotal point and not necessarily at our DPs. We're spending a lot of money around training in that space, but also empowering the people there to make decisions and actually help them along the way. We've obviously introduced the brands I already spoke about, and we had to reduce in certain of our route to market. I think as we said, the digital age is certainly with us. And I think we're pleased to say that all our innovation in that space is certainly starting to pay off. How do you then unlock the other growth opportunities that still exist, I mean there's still quite a few. I think the organic growth is still important for us. I mean don't underestimate existing business still give you the best growth. But we had to also introduce certain other innovative streams, something like a new way of buying or maybe there's a rent-to-buy option going forward. Electric vehicles coming our way because EV is certainty turned -- it started in the U.K. We've seen it. We've now seen a big surge in Australia, it's certainly coming our way in South Africa as well, maybe not to the same extent yet because we don't have additional support from government, for instance. But you can see our customers' behavior is also changing there. And we're very close to what we need to do there. I think collaborating with strategic partners is very important in the space as well. So we do have partners where we have associates, for instance, or joint ventures with banks, et cetera. We can try and test other things and also see to what extent that can help us. I don't always want to own everything. Some of your back office sort of IT things, you actually prefer if someone else could really run with that and keep that digital investment going on that side. And that's the way you can actually make a better outlook. Obviously, all of this is supporting us across all those performance drivers of ours. And I think thus far, we've been very we pleased with how our people have responded to this. If you then go through the 3 -- and I'm just going to give you 3 very quick examples of resilient times, we already spoke about South Africa, but this actually puts it in numbers. First of all, market leader still selling one out of 5. And that is despite how many new engines coming in. So one of the 5 new vehicles, passenger vehicles in the country are being sold through Motus. Our volume has actually been funneled through the dealer channel, not necessarily through car rental or others. You can see more than 20% dealer channel growth. Our leadership team already spoke about how diverse and experienced they are, but I think if you look at those bottom line, I mean, that really tells you the SA profit before tax grew 31% from the prior year. I don't know if there's any other South African companies who can -- automotive who would get close to that. And you can see the overall margins we're making also increased. It used to be 5.4%, it's 5.7% for South Africa. That obviously gave you a lot of cash at the back end. Quick slide on why did we adapt and change, everyone asks us, I mean that's a question we keep on getting so exactly which brands do you back, which ones don't you back? Which ones do you like? Which ones don't you like? And I think in this particular slide, it just gives you a quick snapshot. In the subcell -- we represent now 15 of these what we call growing and emerging brands. We didn't have these brands, call it, 3 or 4 years ago. We slowly started, but in the last year or 18 months, we've really pivoted quite a lot towards it. And that has been part of the reason why we could maintain that market leadership position. And as I already told you, 2 or more than 2 representatives in the prior year. We represent 43 brands and everyone in the top 20. So if the market grows, as you would have seen yesterday again, announced the numbers we did, this business grows because we've actually got that. With international, we've done exactly the same. There, multi-franchise was always in Australia. It's been easier there to maybe get some of these new Chinese brands in there as well. In the U.K., it was actually quite difficult because they were not used to multi-franchise at all. And when we started talking about it 2 years ago with the then MD of passenger division, I mean, it was quite a hard conversation to almost convince him this is what we need to do. But you can see how he's been able to pivot it. In the meantime I hand it over now to Tom and they're really taking it forward. And there, we are very proud of the way we've been able to get BYD, Chery and Jetour and Omoda now into our stable there as well. The one area where we feel we still haven't unlocked the growth opportunity completely is in market parts. And we deliberately gave you this slide and also split into the 3 components. You can understand it properly. So the one was around our strategy to get the whole wholesale chain of that vertical integrations coming from China all the way into the U.K. also supplying Poland, supplying South Africa. And the wholesale revenue has actually gone up by 20%. So we've certainly been able to unlock and get that value chain to start working. It is difficult because as you're moving stock from one place to the next, you do, unfortunately, also eliminate as you are growing. So it needs to sell out right at the front end to really see the full value unlock. In South Africa, we've certainly been able to prove that. And in South Africa, the operating profit increased by 20%. So very well done to the South African team. I think, first of all, we got the volumes right. They had to pivot also to what are the right brands they needed, they did look at their own sort of product line at the head. And you see that the volumes only grew by 6% because we actually took some of the products away and reintroduced or introduced the FAI PRO in some of those lines, which gave you a better margin. And then you end up with an overall number where the operating profit increased by 20%. We've also been able to access new markets there in an economy that's very tough, Remember, if you think about aftermarket parts, they're right in the hands of what the GDP basically does in a country. If the GDP is only 1%, very difficult to grow it from a volume perspective. But you can see we've been able to find other informal markets that we were not in before where they used to be underserved. And we still have a lot to do here. I think that we're going to accelerate the top line growth in this new year. We certainly put that out as a key target for us and still expand into these other areas where we're not in where we maybe -- might have express -- et cetera. The U.K. aftermarket part retail side, not to be confused by the wholesale side, it's probably been the one that's been under the most pressure. And the pressure points there has really been around expenses. So you see top line, they actually did do quite a good job. So revenue, gross profit, that all led by 5%. And I think the FAI PRO introduction has certainly helped. Can we do better on volumes? Yes, we need to still drive the top line volume harder and maybe through store openings, et cetera, we will actually drive more of that product through to the end customers. But the big drawback here was actually that operating expenses increased by 13%. Most of those were outside of our control so above inflation, staff cost increases. And it was really coming from the government where the national insurance rates and a minimum rate, all at much higher rates. But there's a full year number for this last year. And that unfortunately did draw back a little bit from the good work that was already done there. I think we are in the process of strengthening that management tune even further. We believe this is still a business that we need to continue and grow with. And we're certainly going to accelerate also some of the digital solutions with you. I think you realize the benefit you had in that innovation pipeline we've already built in South Africa, where we can now export effectively a land-based solution into a pound-based end result. So hopefully, that can give us a little bit more on that. The performance at a glance before I hand over, I always like to have one financial slide at least or else it feels like -- but -- in the past. At this, I can tell you the operating profit that grew by 4% really resilient performance from SA as I've already told, PBT up 20%. And I think that's a really good number for us to get to. Obviously, we had the benefit of the lower interest rate as well. Headline earnings per share of 15%, total dividends, as I already 29% up to ZAR 0.710 for this final dividend and $10 million -- not all 710, we got the 3. So it's another 410 for you. These scorecards, we maintained the level 2 very good work we've done around that. And I think as I told you earlier, very much a deeply rooted South African company. And our ESG measures, we achieved 80% of all our mobility targets. So yes, I think all in all, good performance. We're very proud of what we've done, but maybe Brenda can take you through some of the financial slides.

So good morning, everyone, and it's my pleasure to present to you the financial results of Motus for the period ended 30 June 2026. So before we get into the numbers, you're going to hear me talk about 3 themes consistently. The first is that Motus has delivered strong operational and financial results that was supported by much higher volumes, improved margins across the board, strict cost discipline as well as a focused execution of the strategy. The second is that we have strengthened the balance sheet, a key element during the year, what we really hone in about how do we start to repay debt a lot faster, how do we improve cash generation across the business. But more importantly, it was sticking to targets that we have set ahead of time in terms of working capital. And if we put all of that together, I think as we stand here, we're very pleased with where the balance sheet stands today. And lastly, we really talk to our ability to rapidly and aggressively adapt to change in the automotive market. As Ockert highlighted earlier, in South Africa, we have increased our Chinese and OEM brand sales volumes by more than 200%. And that's no easy feat, being able to almost -- being able to triple the volumes in just 12 months. In the U.K., we have increased our Chinese volumes by more than 300% and in Australia by more than 40%. The message was loud and clear to us last year to say, you guys are going to slowly, you're too conservative and you need to go for it. It does that and together with our management team, I think we can call that success overall. So turning to our financial results, and this is just an extract of the statement of profit and loss. You'll see that revenue was actually up by 1%. But if we exclude the disposal of our Mercedes Truck and Van business that I will not talk to as MTV going forward, our revenue actually increased. What is particularly in the South African market is that our customers are prioritizing affordability. The ad vehicles that we are now financing is about 350,000. And hence, that mix is starting to impact on the top line number. However, we remain relentless in our fight for volumes. And from a South African perspective, we actually increased our sales volumes, as I Ockert highlighted to you through our dealer channel by 20%. In the same period, nonsales reported a 15% increase, and that shows you the effort that has gone in to drive that sales volumes and ensure that we were getting our fair share of the market. But that was not all yet done because we were not just about pushing volumes. We really wanted to make sure from Ockert and my view that we were driving margin improvement with that. And you see that as culminated in our operating profit actually increasing by 4% year-on-year. So what's in that number? What's sitting in there is actually the higher sales volumes, it is the margin improvement is it's a significant cost reduction that we have put through in each of the businesses that -- we were also looking at new revenue streams that started to feed into the business. It was not just about business as usual, but also looking at how we could tap into other markets as well. Our profit before tax sitting at ZAR 4 billion is the highest that it has been in over the past 3 years. And we are very proud of the management team to finally say we've increased our profit before tax to the ZAR 4 billion mark and mentally it is now a target that we're going to now stretch from and reach higher heights going forward. In case of there's new management team, now you're aware, right, that this is now the platform. Profit before tax actually benefited from a significant reduction in our net times. And here, I have to actually acknowledge the group treasury team as well as our operational teams that really honed in to be able to actively repay down debt, take advantage of interest fee days on our floor plan. But more importantly, we're looking for different sources of funding in terms of how we could access lower interest rates over the period. So really well done to our teams. I think it's phenomenal. And every time we present you, we're presenting a double-digit reduction in this. But ultimately, you can see it culminated in a good result in terms of profit before tax. We raised those to volatility in currency and hence, you see that our foreign exchange movement sits at ZAR 140 million. But importantly, in the first half of the year, that number was already ZAR 91 million. So proactive actions we second in the second half of the year, we have reduced that number down to ZAR 49 million, and I will share with you some of the foreign currency hedging strategy that we've put in place to mediate this going forward. Our income tax expense increased by 22%, and that represents an effective tax rate of 26%, which is representative of our global business. So all in all, our attributable profit is up 19% to ZAR 3 billion with earnings per share being up 19% to ZAR 17.53 and headline earnings per share up 15% to ZAR 17.77. Importantly, the earnings per share was adjusted for impairments as well as the loss that we recognized on the disposal of the MPD business last year. So just as a quick glance into what made revenue contribution for this year. And you'll see this as a theme that comes through quite strongly, our importer and distributor business in South Africa outperformed, increasing their revenue by 13% and really fighting hard against the Chinese. If I rewind 12 months ago, we were in a position of saying, well, how do we deal with this? How do we address this volatility? And it's really our importers of having very strong relationships with our OEMs, bringing in new products, targeting our customer base and offering attractive value propositions. So really well done to importers and job well done overall. From a retail and rental perspective, that is our global business. You see that we had a flat year-on-year, and that is due to the disposal of MTV. Our Mobility Solutions was marginally down with aftermarket parts being 2% up for the year. Again, from an operating profit perspective, the imports remain as our star performer, increasing their profitability by 30%. I couldn't help but smile when I saw Jacob this morning, and I said to him, the one phrase that he has that sticks in the mind is about the relentless execution of the mundane. If there's one leader that continue to challenge the teams about activity, taking down costs and making the business as nimble as possible as probably, it's probably Jacob, and we see the results being reflected in the imported segment as well. So it's a combination of higher sales volumes, higher margins and pushing more product to the dealer channel that culminated in a 30% improvement. Our retail and rental business, despite the disposal of MTV, actually keeps operating profit by 1% and mobility solutions in the South African environment, inflation plus GDP, 5%, and that's what they've delivered. So really, really well done to our Mobility Solutions team and aftermarket parts increasing by 1%. So digging a bit deeper to understand some of the key drivers of this result and again, emphasizing the importer and distribution business means that their operating margin has increased to 4%. Now this is our targeted level, and we maintain that this segment should be between 4% to 4.5% and we've achieved the 4% that we were looking for. However, the stellar results in here is that their profit before tax has increased by more than 100%. Now the doubles there are profit before tax and got to ZAR 385 million. Part of that was also around -- you would have seen that Rhenier yesterday would announce the numbers, had probably one of the highest volumes that we've seen over the past 12 months, Kia has seen a stellar performance for us and Hyundai holding their position as #4 and fighting back against the Chinese. And of course, Tata has been a well-received addition to the family. So thank you very much for your contribution in that part too. However, what I'm going to have to recognize to share with you is that the imported segment as much as I'm sharing this glamorous numbers with you, it's a tough business. The Chinese are playing directly into that space. We're having to constantly refresh the product, we look at pricing and ensuring that our customer service remains at the best at all times. Here, you'll be able to see that, again, despite the -- environment, our volume had increased by 15%. And as I said earlier, Tata with a welcoming 5,458 units into the stable. One of the achilles heel that we constantly talk about is the volatility in currency, and you saw it in the income statement as well. Ockert and I have taken a view that we need to be able to secure our gross margin towards these next 9 months. To that end, we've taken advantage of the current strengthening of the rand against major currencies and have locked in forward cover for the U.S. dollar until April of next year at 68%, which we believe is quite an attractive rate and for the euro until March next year at 19.69. Now why is that important? That is important because for us, it gives us certainty on what the gross margin is going to be for that product. Once we have certainly, we have certainty in the gross margin, we can then work across all of these variables. So this remains a key lever for us as we look at profitability of equipment. As we mentioned earlier is that we did prioritize on into the dealer channel rather than rental. And as a reminder, we do have higher margins that we realize out of the dealer channel. But the bond was there. We took advantage of it, and we've realized this straight line. From a retail and rental perspective, again, this is the flow business. As I mentioned earlier, revenue remained flat due to the disposal of MPD prior year with operating profit remaining resilient and increasing by 1%. We had a slight improvement in operating margins at 28% -- but more importantly, our profit before tax was up 25%. Earlier, I told you that we have set targets and building hard in terms of managed working capital, this is the result thereof. It was really an interest saving that we've had. But also, it's also credit to the management team because we have taken a strategic decision to dispose of noncore assets as well as businesses that do not make our targeted rate of return. All of that is culminated in the quality earnings that we can then present back to you today. So taking a step back and just looking at the geographies in which we operate from a retail and rental perspective, SA retail was a very different story 6 months ago. And I think we were all really worried about how are we going to turn this around, the shrinking brand that we're facing a lot of churn. We brought in Keon -- as being one of the most experienced CEOs that we have into that business. It was tough, but I think when you look at the results, I think we're on the right road and the journey here that at least looks positive. Included in these numbers is the importer dealers that also you can see through the numbers presented deliver their fair share to get advantage of the buoyancy within the South African automotive market with vehicle sales units being up 11% for the period. What we've also seen in here is that we've been quite aggressive in expanding and acquiring new dealerships that have Chinese brands being represented. And we believe that we are now able to serve the consumer much more effectively as we are represented by most of the top brands within the country. From a vehicle rental perspective, is the last time I told you they delivered an exceptional performance. And as I was preparing for that, what's another word for exceptional. There is no other word, right? So the only thing that I can think of is that the exceptional performance has continued. Despite the pressure and the competitiveness that we see on the average daily rate, we still managed to increase revenue by 6%. And really, that has been due to the increase in the average utilization rate from 71% to 73%. And for some of us, you would say, 2%, why you're not there. But this is the actual use of the vehicles that we are not churning out much faster than being able to recognize higher revenue numbers. In the period, we've also increased our market share and taken away from others and that has largely been in the international segment. Operating profit increased by 8% and profit before tax was also up 21%. So Rhenier, well done to you and your team on the great results. From a U.K. retail perspective, we've presented the numbers in functional currency to you. And the reason for that is because we want to take away the noise of the FX volatility. When we look at it from a revenue perspective, revenue is down by ZAR 53 million. That, again, is due to the disposal of the MTV business in the prior year. Now against the background that Ockert just described to you, where we have a benign economy within the U.K., this business still managed to generate an operating -- and profit before tax that was up by GBP 11 million. That is no easy feat to be able to deliver, particularly where you have consumers that are quite cautious, the economy is quite weak, but within that, we have still increased the profit before tax. Importantly, from a passenger perspective, as I indicated to you earlier, is that our Chinese brand sales have increased by more than 300%. And he talks to the proactive decisions that we've taken almost 18 months ago where we started to diversify the brands in that country. On the U.K. commercial side of the business, we are still seeing pressure on the top line as customers and businesses still remain cautious and are starting to delay some of their fleet sales. However, as I've shared with you before, it's 80% of their operating properties actually derived from the regulatory servicing of those vehicles. And that has enabled us to maintain profitability within this business. So whilst the pre sales are down, the annuity income has continued to remain strong, and you see that we have actually maintained our workshop hours at 1.2 million hours per year. Australia retail comes off a very high base. And importantly is that we still continue to sell vehicles within that market. However, there has been a structural shift. At the moment, we have seen that the Middle Eastern crisis is starting to take effect in February, immediately these customers started to move towards electric vehicles to save on the fuel bill, and there has been a surge of Chinese brands as well. Our recent acquisition of the Warrego dealership that has a number of Chinese brands is going to aid us to be able to service the customers and be able to provide the products that they are currently demanding in that market. But despite that onslaught of that the Chinese gaining traction within the Australian market and the move to what electric we still each reached revenue by AUD 7 million. Operating profit was slightly softer, down by AUD 6 million as well as profit before tax being lower. And the reason for that is primarily due to the margin pressure that we are seeing in that particular country. Our vehicle workshop hours actually increased to 319,000 hours. And as we can see is whilst the team was feeling the pressure on the vehicle sales, we looked at the other revenue streams that we could access to be able to maintain their profitability. The Mobility Solutions business always remains interesting. And I don't know if I've shared this stat with you before, but if I haven't, it is now on the screen, is that more than 70% of the operating profit of this business is actually annuity based, which means that they're not starting from a 0 base like selling a new car every single day, right? When they start the year, they already know that, that annuity is baked into their number. but key is going to be to be able to build that fund going forward. So standing back and looking at the results, as I said to you, very impressive from a South African perspective with operating profit being up 5% to ZAR 1.4 billion. Profit before tax also up 5%. And our deferred fund income, which is the annuity base that we are building on the balance sheet actually increased by 3%. Now when you stand back and look at this business, I'm amazed 2 years later to realize the amount of capabilities and experience that sits within this team. We now find that there are additional revenue streams that we can access because the data and the capabilities that we have till now serve the Chinese markets and entries as well. We're still trying to build these capabilities. So the future of this business is super exciting, and we welcome Simphiwe as our new CEO to be able to drive that growth agenda for us. Looking at our aftermarket parts business, on a totality, from a global perspective, revenue did increase by 2%, and the operating margin was maintained at about 9% versus 9.1% in the previous year, with profit before tax increasing by 5% to ZAR 947 million. The key performer within this segment has been the SA aftermarket parts. And the benefit that we've had of releasing results today is we've seen some of our other peers come out with bad numbers. And if we compare, we can actually look at the competitiveness that sits within this environment. And despite the rates to the bottom, almost from a price perspective, we do see that our revenue did increase by 2%. Unit volumes were up 6%, operating profit up 20%. And profit before tax at almost double to ZAR 330 million. Our operating profit had also benefited from a significant cost reduction as well as warehouse optimization and trying to access additional rebates that we haven't seen in previous years as well. However, we are not satisfied with this, Michelle, and I will ask for next year is about how do we grow the top line at a much faster rate, but really well done in terms of getting to an operating profit that's spread close to ZAR 600 million. To be able to demonstrate the scale and the size of our Midas businesses in South Africa, we thought it would be good to highlight that currently, Michelle and her team handles more than 135 SKUs. Think about how many different types of parts that is? And within that scale, they're still able to generate quite a profitable number. When I talked earlier about accessing different revenue streams, different customer bases, a good example here is when Ockert and I set the target for the team at the start of the year, we said to Michelle, see if you can get to 1,000 cars and mechanics. But they must be active. We just don't want their telephone numbers in a WhatsApp group. We want to see active buying and look at what they've delivered, right? They've exceeded the target and actually got to 3,000 cars and mechanics that are actively buying for us. And I think really, really well done, Michelle. You've helped us penetrate the new markets, and we look forward to the future growth that can come out of this as well. Our international aftermarket parts, Ockert has given you some color. And the key takeaway from this is the strategy remains sound. Our wholesale business increased their revenue numbers by 20%. And when we look at our retail business in the U.K., their revenue increased by 6% and gross profit by 5%. And overall, that culminated in their revenue being up by GBP 15 million. We did talk about earlier that operating profit came under pressure due to the cost associated with minimum wages as well as national insurance. And I thought it was good to be able to quantify it for you. In a normal business, one would expect an inflationary adjustment, but we've quantified it to you to be able to say what was that above inflationary number. And that is actually GBP 2.7 million or in rand terms, it's about ZAR 60 million. If we normalize for that, this business would have generated a profit of about GBP 700,000. So Ockert has shared with you some of the actions that are being driven today as we speak to be able to mitigate that cost impact. And I can tell you that, that one-off big cost is now into the base. And as we move forward, we don't see significant increases coming through. However, we remain relentless to be able to drive that cost down and get this business back to the profitability that it should be. As I said, the strategy remains sound. We have a cost issue that we are trying to solve for, purely driven by the employee costs. To put it into context as well, it's 80% of our employees that were affected by the significant increase in the national insurance and minimum wage in the U.K. From a size perspective, our MPD business, which is the retail arm is and still remains one of the top 5 aftermarket parts suppliers in the U.K. From the strengthening of the balance sheet perspective, I'm not going to go through the whole balance sheet because I can't explain all the positive news to you. I've just chosen 2 items to bring to your attention. The one is that we have seen a reduction in our vehicles for hire because we prioritized our dealership channels as opposed to external rental companies. And our working capital has reduced by 2% despite us bringing Tata in our stable. So despite adding the working capital for Tata, overall as a group, we still managed to reduce our working capital by 2%. Our core interest-bearing debt reduced by a phenomenal 14% and our floor plans from banks actually reduced by 7% as we try to access different funding mechanisms that carried lower interest rates as well. The only thing that I want to demonstrate with this slide is 18 months ago, you were very upset with us as an investor base to say your debt levels are elevated, you have cyclicality in your results, and we can't project accurately. And here's the answer and here's the solution. For 3 consecutive periods, we have managed to keep debt levels at its lowest that it's probably been, it's stable, it's well contained, and we are extremely happy as a management team that we've been able to tick that box. However, we don't stop here and if it is still continuing now to be able to access different markets. And on that note, I would like to announce that we have listed our first inaugural bond with the JSE on Friday, and we will now be engaging with our debt investors and road shows and looking at different avenues, different sources of flexibility of funding. And Ben, thank you very much for your leadership and the broader team together with RMB in taking us through this far and hopefully having some success in the auction as well. Thank you very much for that. From a cash flow perspective is our cash generated from operations was ZAR 8 billion. And as you can see, we only put in ZAR 360-odd million into vehicles for hire -- into working capital with ZAR 1 billion in vehicles for hire. However, the key message that I want you to take away from this is Motus remains committed to providing attractive returns to shareholders. In a period of 12 months of high cash generation, we have returned ZAR 1.9 billion to shareholders in the form of dividends and share repurchases. And we hope that, that trajectory will continue as we continue to grow this company from a strengthened balance sheet perspective. Now with all that cash sitting on my hands, one of our nonexecutive directors I should chop off anybody's hands that's going to spend money because now we've got the debt levels down. We're not going to do that. Instead, we have a very disciplined financial framework that's anchored on 5 priorities. So one is, as I said, we don't stop here. We want more cash flow to be extracted out of this business. We think there is still a lot of value and lots of potential sitting across the different divisions that we operate in. And really, it's about disciplined cost management, higher sales volumes and robust inventory management. Continuing to managing our debt levels remains a key priority. As I said to you, we want the stability within our debt numbers. And we do believe that we've dipped a bit lower than where we should be. We're sitting at 1.3x and the optimal level in the medium to long term should be 1.5 to 1.7x. Disciplined capital allocation remains top of mind. We are not in the space where we're going to do big major acquisitions, but we will still look at moderate acquisitions that are still within the ambit of our current business segments. We continue to respond to economic volatility. As I shared with you, we've secured the gross margin on the dollar and the euro until March and April of next year, respectively, and our commitment to delivering attractive shareholder returns remains. As I get to my last slide, it's always good to look back since 2018 as to how much of cash did we generate. And this business since listing in 2018 has generated ZAR 38 billion. 1/3 of it was invested back into the business to fund working capital as well as vehicles for hire, but 30% was actually returned back to shareholders. What this slide also demonstrates is that our investment case remains undeniable. We are a strong cash-generating company. We are the leading automotive company in South Africa, and we have the scale, we have a well-invested infrastructure and therefore, become an attractive partner to any OEM and other stakeholders. A good example is that we brought the Tata brand using our existing facilities, existing infrastructure. And as of yesterday, we were able to take this brand to be a top 12 brand. That also talks to our people. We have some of the best people in the world that work for us, highly experienced technical knowledge and know-how that cannot be compared to many of our peers, but more importantly, the superior customer service that we offer. The diversity of our group in terms of accessing multiple revenue streams across the value chain enabled us to enables us to grow from this space and be able to make a success of this company as we move forward. That is the power of our group, and that is Motus. And on that note, I hand you back over to Ockert.

Thank you very much, Brenda. I don't know if I can top that. It sounds too good to be to true. But you're right. I think that the growth has really been through that focused execution, and that's actually how you've seen it. It's not around -- we can look pretty and show you some slides, but there's a lot of hard work happening at the cophase. So thank you very much to our ExCo team. And I think to all our people. And I think what we said earlier is that we have certainly connected to our people a lot better maybe in the last year than we've done before. And I think that's really where we needed to go and spend the time, energy and make sure that everyone understands how we're turning this business into a long-term sustainability business. If there's a lot of brands changing, like I said earlier, all the effort you have to put in to try and turn this business and face in the right way, then obviously, you have to invest heavily in your people. We've got more than 20,000 people working for us. I think in South Africa, we obviously do also measure ourselves around our diversification. You can see our SA black representation now sitting at 84%, our Board Black representation and our 63%. And our SA female representation sitting at 38%. I think that is something that we've also tried to make sure that we get right. We are, of course, sponsoring the YES for you, something that's been really working for us and has really helped a lot of new people getting into the workspace over the years. We've now done 3,300 jobs. And I think what is more important there, and that's probably why we did get the accolades even from President Cyril Ramaphosa was saying our retention rate sitting at 43%, and we got our certificate hanging in office for that. I think on the training side, we continuously invest and train. We train wider than ourselves. We don't just train for Motus, we actually train for the industry. We do train our own people, a lot of our people move around within the industry after that. You can see our training academies. We train more technicians than what the country needs necessarily or what we require, what the country requires. And that's the way we actually make sure that the total automotive also remains strong. We also spent ZAR 7.5 million on the bursaries and it impacted the 193 students and those bursaries staff working within our business and their immediate families. We're also empowering our communities. We're very proud that we've been a partner of this -- the community trust that's actually spent money around the resource centers. We've got up to 96, and we are looking towards the 100th in October. Unfortunately, Azman couldn't be here this morning, but between Mohammed and Osman, I think over the years, they have really pushed us hard, and we are looking forward to that 100th resource center within this year still. Obviously, spending a lot of money around safety, which is part of our domain. And also we spend a lot of money around some Jini clinics. I think we've been very fortunate to see that, that's a program that's really taken off -- it creates a lot of permanent employment. And it's also one of those businesses that actually starts growing itself. You don't necessarily need to always look after it. It actually has a permutation long after you've left it. So where do we see ourselves going in 2027? I think from a strategic focus perspective, not that much is actually going to change. Maybe that's a good thing. I don't say we shouldn't change, but the reality is what it is working for us. I think we want to maintain this market leadership of ours. In every part of our revenue streams, we actually have specific targets there is the new vehicle one is nice to look at one of the 5, but also on the others. When we have our leadership update with our teams, we're very specific on what we want to track. We want to build capacity for growth. And that's sometimes that people neglect saying, "well, it's great to grow, but do we actually have the capacity to take that on?" And over the years, we've certainly been able to get that pipeline of our immediate people who can take over leadership positions. We've seen it in this last year when we have to split emerging brands into Tata, Mitsubishi, there's someone who can take over. I mean Bruce -- just walked in and actually just ran with it and because he's been with the business before. In our aftermarket parts, we've been able to split that business into South Africa and international over the years. Michelle took over as CFO, she moved up into the COO role, got new talent coming in. And that's that kind of pipeline and continuously have to grow and make sure that you strengthen yourself for -- to take care of growth. We are going to continuously still strengthen our brand representation. I think the market keeps on shifting. You need to stay with the market, and we have seen that some of the new entrants coming in now is going to be quite exciting as well. Annuity-based earnings, obviously, very important. You want to remain resilient. So one way of doing that is actually making sure that you grow these funds, as Brenda showed you earlier, around mobility solutions, 70% of those profitability is actually annuity income streams, and that's the type of thing that you want to grow. And obviously, also on our disciplined way. I always thought I was quite a tough CFO until the best CFO took over. So certainly been able to really drive that cash flow generation. And I think that balance sheet resilience really shows. You can see year-on-year, we've been able to really keep it at those levels. So we do believe we're in a position of confidence we're going into the new year, and we really hope to deliver on those promises. So over to you, I think from my side, just a final thank you to our management teams, the ExCo that's here today. We've got a slight change in the Investor Relations side. I think they've done a fantastic job. Our marketing team did a fantastic job. So I'm really pleased to show these results to you. We do have about 5 minutes left for questions. So Claudia, maybe there at the back, if you can just see if there's anything online, and then we can take it in the room.

So we do have a couple of questions online. I think the first one relates to the Tata relaunch, which has gone really well this year. Would you consider adding any more brands and importing -- adding more to your imported portfolio?

Yes. I think we've seen that to launch a brand is not easy. There's certainly opportunities. And I think now that we've been able to demonstrate, again, launching a new brand, I think that does feel as if we understand how to do the, call it, plug and play, and there are certain opportunities that may be in the future. I don't think there's anything right now, but maybe hold your thoughts for the next 6 months, and we could tell you something about it.

Okay. The next question is relating to the DMTN bond listing. When does Motus expect to come to market? And what's the size of that?

So I'll take that. I wasn't sure if that was you. So we will commence with the debt roadshows from next week. And we are targeting a ticket of ZAR 1.5 billion. And I believe that RMB has started to engage with shareholders and have those discussions.

And then the last question online. And Ockert, maybe for you. Do you think that the new vehicle momentum that kicked off on this year is going to continue into the future.