Cartrack’s share price climbs almost 8% after surge in subscribers
The vehicle-recovery company expects headline earnings per share to climb at least 16% in the year to end-February
Cartrack’s share price climbed 7.65% to R18.30 on Tuesday afternoon, after the company said it expected headline earnings per share (HEPS) to rise to between R9.98 and R10.23 for the year to end-February.
The increase in HEPS of between 16% and 19% follows a 25% growth in subscribers to 751,380 — the most significant increase for the company to date. Subscriptions grew by 65,812 in the first half of the year and by 84,958 in the second half.
SA’s vehicle sales increased in 2017 for the first time in four years, with sales increasing 1.7%. In February 2018, aggregate vehicle sales registered a 3.8% decline compared to the same month in 2017, but economists were somewhat bullish as to the outlook for the sector.
At the time, the National Association of Automobile Manufacturers of SA (Naamsa) had cited an improved domestic outlook, replacement demand, and reduced vehicle inflation, as a supportive of demand.
Cartrack’s results for the year to end-February are expected to be released on April 24.