WeBuyCars is rocking
WeBuyCars expects its headline earnings to more than double when it presents its interim results on 19 May, with core headline earnings up 24% to 28%.
This was revealed in a trading statement from the company released on 29 April, which outlined its strong performance for the six months to the end of March 2025.
WeBuyCars’ management said in the statement that it utilises core headline earnings to measure and benchmark the underlying performance of the business.
Core headline earnings represent headline earnings adjusted for certain non-recurring or non-cash items that, in the view of the company’s board of directors, may distort the financial results from period to period.
As a result, it advised shareholders that it is reasonably certain that the financial results for the six months ended 31 March 2025 are expected to be as follows when compared to the prior period –
| Earnings | Expected number range | Expected percentage change |
| Core headline earnings | R500.2 million to R516.3 million | 24% to 28% increase |
| Core headline earnings per share | 119,4 cents to 124,2 cents | 0% to 4% increase |
| Basic earnings | R505.3 million to R508.8 million | increase by more than 100% |
| Basic earnings per share | 121 cents to 122 cents | increase by morethan 100% |
| Headline earnings | R506.5 million to R510 million | increase by morethan 100% |
| Headline earnings per share | 121.3 cents to 122.3 cents | increase by more than 100% |
The 83,185,241 new shares issued on 29 February 2024, 27 March 2024 and 11 April 2024 have an unfavourable impact on the company’s per share metrics.
These new shares were issued in terms of the pre-listing capital raise, which was approved by shareholders before the listing of WeBuyCars on the Main Board of the JSE on 11 April 2024.
WeBuyCars’ listing on the JSE has come at a financial cost for the company in the short term, with the company racking up once-off professional, legal and JSE listing fees totalling R45 million.
In addition, as set out in the WeBuyCars Pre-Listing Statement from March this year, the company held various call options which gave it the right to purchase the 25.1% shareholding in the Group from I VDW Holdings, for which a call option derivative asset was raised in prior periods.
Upon adopting its new Memorandum of Incorporation, the shareholders’ agreement was cancelled, which led to the cancellation of the call options.
The call option derivative asset of R426.5 million was consequently derecognised on 25 March 2024.
This fair value loss on derecognition of the call option derivative is once-off in nature, non-core and has no cashflow impact.
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