Nutun (NTU) H2 2024 earnings summary

Executive summary

• Completed unbundling and separate JSE listing of WeBuyCars, returning R5.2bn to shareholders and eliminating holding company net debt through share distribution and capital raise.

• Major corporate restructuring included sale of controlling stake in SA Taxi, disposal of non-core subsidiaries, and rationalisation of group head office.

• Nutun positioned as the first South African homegrown BPO to be listed on the JSE, transitioning to a global specialist BPO operator.

• Sale of Nutun Australia and Nutun Transact, and buy-out of Synergy CX minorities, simplified Nutun and strengthened liquidity.

• FY2024 marked by significant strategic trade-offs, value unlocks, and a proposed name change to Nutun Limited.

Financial highlights

• Core earnings from continuing operations: (R92m) for FY2024, down from R179m in FY2023 (>100% decrease).

• Core earnings for Nutun fell 85% to R54m from R359m year-over-year, mainly due to funding constraints, higher amortisation, and increased interest costs.

• Core loss from total operations: (R1,980m) vs (R728m) in FY2023.

• Basic EPS from continuing operations: (11.8c) vs 23.6c in FY2023.

• Significant reduction in total assets to R7,066m (from R40,289m) and total liabilities to R6,008m (from R33,708m) as of 30 Sept 2024.

Outlook and guidance

• Nutun targets sustained earnings growth in FY2025, aiming for a 20%-25% medium-term ROE.

• Nutun is well-capitalised, has resumed book buying, and expects growth as liquidity improves.

• Both Nutun SA and International are well positioned, with strong management and balance sheets.

• Interest rate down cycle expected to benefit Nutun SA; international business leverages technology and US market penetration.

• Cash dividends remain suspended until restructuring is complete.