Combined Motor Holdings, which sells vehicles under 29 different brands and also owns First Car Rental, grew profits almost a quarter in its year to end-February, seeing record profit margins its rental business, but warning these are likely to be squeezed as high vehicle prices take their toll on the industry.
Headline earnings grew 23% to almost R462 million in the group's year to end-February, and had also more than doubled in its 2022 year, but the company only upped its final dividend by 6.7% to R2.40 per share. Total dividends were still up more than two-thirds year-on-year, however.
The company reported record operating profit margins, citing an "exceptional" result from its car rental business, benefiting from many of its competitors downsizing significantly during Covid-19, as well as its own "aggressive" marketing.