Vehicles - Motor-related Financial Services

LiquidCapital uses its advanced information technology, data management capabilities and access to market intelligence from within the group’s Vehicles division to develop relevant and customer-focused motor-related products and value-added services. The creation of Motus Holdings will enable it to further extend the strategic advantage it provides to the group’s vehicles-related businesses, in addition to extending its access to points of sale.

These strengths position financial services as a key growth area for the division. LiquidCapital’s direct sales channel, MotorHappy, has successfully strengthened its position in the direct-to-consumer market. LiquidCapital has also launched a roadside assistance mobile application, providing a single point of contact for customers. Vehicle insurance is provided through LiquidCover in partnership with existing insurance partners.

In anticipation of a shift in buying behaviour from new to lower-cost and preowned vehicles, LiquidCapital is developing products that specifically address the needs of this market, notwithstanding the impact of the weak rand on the cost of imported vehicle parts, which increases the average cost of maintenance and service plans.

Although the slowdown in the vehicle sales market is expected to slow growth in funds under management, the strategic initiatives outlined above will stimulate growth in funds and the customer base over time.

REVENUE 2016
R million
2015
R million
%
change
Motor-related Financial Services 1 634 1 429 7

OPERATING PROFIT 2016
R million
2015
R million
%
change
Motor-related Financial Services 669 620 8

OPERATING MARGIN 2016
%
2015
%
Motor-related Financial Services 40,9 43,4