WeBuyCars Holdings’ core headline earnings per share would likely increase only between 0% and 4% in the six months to March 31 after double-digit earnings growth was diluted by more shares in issue, the motor retail group said in a trading statement on Tuesday.
The share price fell 2.7% to R42.70 by midday, but the price is still more than double the R19.19 it traded at a year ago. Although WeBuyCars trades in used vehicles, the 10.5% year-on-year increase in new car sales in the first quarter to 144 426 units sold indicates a recovering vehicle market, overall.
The company said in the trading statement that its core headline earnings per share for the interim period was expected to be between 119.4 cents and 124.2 cents.
Core headline earnings were expected to be between R500.2 million and R516.3m, representing an increase of between 24% and 28% over the same period last year. We Buy Cars uses core headline earnings to measure and benchmark the underlying performance of the business.
Headline earnings a share were expected to be between 121.3 cents and 122.3 cents, representing an increase of more than 100% compared with the -20.7 cents reported at the same time last year.
The number of shares in issue at March 31, 2025, was 417.31 million shares, compared to 377.18 million at the end of the interim period in 2024.
The 8319m new shares issued on February 28, 2024, March 27, 2024, and April 11, 2024, had an unfavourable impact on the core headline earnings a share, basic earnings a share, and the headline earnings a share in the six months ended March 31, 2025.
These new shares were issued in terms of the pre-listing capital raise, which was approved by shareholders prior to the listing of WeBuyCars on the JSE Main Board on April 11, 2024.
Basic earnings a share and headline earnings a share for the previous corresponding period were impacted by legal and JSE listing fees of R45m, and a R426.5m call option derivative asset relating to the pre-listing call options on the founders’ 25.1% shareholding in the group that was de-recognised on March 25, 2024.
The interim results are expected to be published on May 19, 2025.
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