Combined Motor Holdings revs up dividend by 11%
Vehicle dealer chain Combined Motor Holdings has raised its interim dividend 11% in the half-year to August despite tough market conditions. The group’s revenue for the six months to August fell 3% to R5.1bn, partly because the company closed two dealerships. Nevertheless, Combined Motor Holdings’s after-tax profit increased 33% to R96m owing to stable net interest charges and a reduced tax rate. It declared an interim dividend of 61c, up from 55c in the same period a year earlier. The country’s recent recession had caused national vehicle sales to fall 0.7% during the reporting period, CEO Jebb McIntosh said. "Of further concern has been the considerable decline in the level of units sold in the luxury segment," McIntosh said. "A drop of some 18% this year followed a 15% decline in the previous year." This was a clear indication that middle-class and high-income consumers were feeling the effects of the sustained economic downturn and that the financial investment in new vehicles h...
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