Barloworld Limited - Unaudited preliminary results for the six months ended 31 March 2020

About Barloworld

Barloworld is a distributor of leading international brands providing integrated rental, fleet management, product support and logistics solutions. The core divisions of the group comprise Equipment (earthmoving equipment and power systems), Automotive (car rental, motor retail, fleet services, used vehicles and disposal solutions) and Logistics (logistics management and supply chain optimisation). We offer flexible, value adding, innovative business solutions to our customers backed by leading global brands. The brands we represent on behalf of our principals include Caterpillar, Avis, Budget, Mercedes-Benz, Toyota, Volkswagen, Audi, BMW, Ford, Mazda, and others.

Detailed commentary

Financials

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Salient features

Challenging trading conditions prior to COVID-19
REVENUE
R25.2 bn down 12.2%
OPERATING MARGIN
4.4% down from 5.5%
Austerity measures implemented to manage COVID-19 impact, expected 2020 overhead cost containment between
R700m and R720m before implementation costs
Balance sheet a key strength for the group in these times, with a committed funding capacity of
R8.1 bn as at 31 March 2020
*The group Net debt-to-EBITDA ratio**
0.9 times	FY19: 0.2 times
*Group EBITDA to gross interest paid of**
5.5 times	1H’19: 5.7 times
Group return on invested capital
9.2%	1H’19: 11.3%
Group normalised headline earnings per share ^#
354.0 cents	1H’19: 521.4 cents
Well positioned to withstand expected intensification of challenging trading conditions in the second half
* Excluding IFRS 16 impact. ^# Excluding B-BBEE charges and IFRS 16 impact.