Karooooo keeps up the momentum despite Covid-19

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Karooooo keeps up the momentum despite Covid-19

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Published Date: 2021-05-07 | Source: Stephen Gunnion | Author: Stephen Gunnion

Karooooo keeps up the momentum despite Covid-19

The holding company for vehicle telematics group Cartrack has presented its first results since its Nasdaq listing.

Karooooo has maintained the momentum of its Cartrack subsidiary despite the impact of Covid-19 on subscriptions and growth last year. The vehicle telematics group also expects strong subscriber growth in the year ahead.

The company, which listed on Nasdaq and the JSE last month after offering Cartrack shareholders the option to reinvest, grew total subscribers by 16% to 1.31 million for the year to end-February. That's despite a sharp decline in new additions in the first and second quarters of the year due to operating restrictions caused by the pandemic.

Total revenue for the year rose 18% to R2.29-billion supported by a 17% increase in subscription revenue to R2.21-billion. Adjusted earnings before interest, tax, depreciation, and amortisation (Ebitda) came in 21% higher at R1.13-billion as its Ebitda margin improved to 49% from 48%. Adjusted net income was 18% higher at R523-million while adjusted earnings per share (EPS) increased by 19% to R16.91.

Karooooo's Nasdaq listing raised $33.8-million (R480-million) in gross cash proceeds, which it said would be used for general corporate purposes including the growth and expansion of Cartrack, such as research and development. The costs of the initial public offering expensed in the fourth quarter amounted to R26-million and it said a further R12-million would be expensed and the remainder set off against share capital this year.

The company is targeting 1.5 million to 1.6 million subscribers by the end of its 2022 financial year next February, resulting in subscription revenue of R2.5-billion to R2.7-billion. However, due to the ongoing impact of Covid-19, it said it was extremely difficult to provide guidance with any degree of certainty.

Karooooo's shares closed 1.9% up at R590.99 yesterday.





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