CMH revved-up and ready to steer ahead

CAPE TOWN – Combined Motor Holdings (CMH) had a strong balance sheet with significant cash resources to see it through the tough trading environment and gain market in a motor retail industry that was likely to have fewer players post Covid-19, chief executive Jebb McIntosh said on Tuesday in the audited annual results.

The Covid-19 lockdown has had a disastrous impact on the South African economy and the motor industry, where consumer confidence and affordability levels were already touching record lows, and unemployment had reached a record high.

CMH’s attributable profit fell to R58.87 million in the year to February 29 from a restated R81.72m the year before, and from R128.93m in 2018.

McIntosh said the consensus view was that following the lockdown, national new vehicle sales volumes would decline year-on-year by about 30 percent.

The impact on used car sales was not expected to be as great as that of new car sales. CMH’s parts and services divisions, which operated to a limited extent under level 4, had begun to rebound since the easing to level 3.