JSE-listed automotive group Motus is continually monitoring the impact of Covid-19 on its business in South Africa, through a specially formed crisis committee, considering that 90% of its operations have needed to stop operations during the lockdown.
The company says the impact of the virus is also being felt in every other country in which Motus operates.
After the lockdown ends, Motus plans on issuing face masks and sanitisers to staff members, checking peoples’ temperatures entering premises and ensuring physical distancing guidelines are adhered to.
Six Motus employees have contracted Covid-19, but are in the process of recovering. Five of these people are based in the UK, while one is based in South Africa. The company says that those were isolated cases and have not negatively impacted on the company’s operations.
Motus has implemented various actions and initiatives focused on preserving cash, including reducing the CEO’s remuneration by 20% and the directors and committee members’ remuneration by 15% for six months; however, these funds will be donated to the national Solidarity Fund in South Africa.
The company has also reduced the remuneration of its UK CEO by 20% and the board members’ remuneration by 15% for six months.
Motus has received assistance from original-equipment manufacturers through targeted reductions and minimum variable margin payouts, stocking interest relief, extension of floorplans, demonstrator vehicle relief, staff training suspension, ensuring parts stock availability and accepted vehicle order cancellations.
The company has also benefited from deferral of rentals for three months for certain leased properties and postponed non-critical capital expenditure.
Motus further reduced its advertising spend and operational expenses where possible.
The company has cancelled its interim dividend payout and suspended its share buyback programme.
Motus confirms that it has sufficient loan facilities available should it become necessary, as well as sufficient foreign exchange cover in place.