Replacement Parts Services and Solutions:
Auto Agri (“RPA”)
RPA which operates in South Africa and certain European countries, consists of automotive and agricultural parts businesses, previously reported under the Engineering Solutions Group. This segment focuses on the importation and distribution of automotive aftermarket parts and Original Equipment Manufacturer (“OEM”) kits, as well as driveshaft parts and other replacement parts for the agricultural industry.
In respect of the year under review:
> Revenue increased by 19.2% from R435 million to R518 million, this is an increase of 24.9% on the pre-Covid revenue levels
> The war in Ukraine has affected our Ukrainian business negatively and, due to the uncertainty of the war, a decision was made to impair all our Ukrainian assets totalling R14 million
> Despite this provision having been made, sustainable operating profit for the segment increased by 18.9% from R77 million to R91 million
> Due to the impairment of the Ukrainian assets, net operating assets decreased by 4.3% from R271 million to R259 million
> The return on net operating assets for the financial year increased by 6.9% from 28.4% to 35.3%